The IDB has given Honduras two loans for a combined total of $37m, the multilateral says in a release. The first loan is for $25.9m and has a 30 year maturity, with a 5.5 year grace period. The announcement did not specify the interest rate of the first loan. The second loan is for $11.1m, has a maturity and grace period of 40 years and an interest rate of 0.25%, adds the release. The loans will be used to improve basic education for the country’s poorest children. The proceeds will go towards new books, educational materials, computers and teacher training.
Category: Loans
Posted inDaily Brief
Bimbo Gets Cheaper Financing
Mexico’s Grupo Bimbo managed to get significantly tighter pricing on the $1.3bn loan it took out to refinance an existing loan, says a company official, reducing its interest rate to 3.9% from 5.7%, according to a company official. Bimbo refinanced the remaining portion of the $900m loan it used for the Weston takeover in 2009. The company decided to refinance the facility because pricing has become more attractive than when the loan was originally arranged, says a banker with knowledge of the transaction. The original loan expired in 2014, and will now mature in 2016. Bank of America Merrill Lynch, BBVA, Citi, HSBC, ING and Santander were in the original transaction and acted as bookrunners, with Bank of Tokyo Mitsubishi coming in as a new lender and bookrunner. Mizuho and JP Morgan came in as new lenders, and Barclays also took a ticket, as it did in the original transaction. The facility will be wholly dollar-denominated, whereas the original transaction was available in pesos or dollars.
Posted inDaily Brief
Cifi Visits Investors
Corporacion Interamericana para el Financiamiento de Infraestructura, (Cifi) is meeting fixed income investors this week. The Panama-incorporated, Washington-based lender is visiting US, Europe and LatAm buyers on a “non-deal” basis this week and next week through Tuesday, according to bankers managing the process. Bank of America Merrill Lynch and Standard Chartered are managing. The bank, which lends to infrastructure projects in the region, has yet to issue a cross-border bond, according to Dealogic. Cifi is owned by a group of multilateral and private banks, including HSBC, Caja Madrid, La Caixa, Itau, IFC, Caribbean Development Bank and Cabei.
Posted inDaily Brief
JPMorgan Leads IB Advisory Fees
JPMorgan leads the ranks of investment banking advisory fees, according to Dealogic. As of April 25, JPMorgan squeaked past Credit Suisse, generating $85.4m in fees for a 12.9% share of the pie, versus Credit Suisse’s $84.7, and 12.8%. CS maintains its position from a year ago, while Itau drops from the second to third spot with $81.8m in fees for 12.4% of the total. Citi maintains its position as the number 4 advisor. Overall, fees are up significantly from a year ago, reaching $661m from $528m in 2010 according to Dealogic, a 25% jump. Deutsche and Goldman, which scored the 7 and 8 spots last year, respectively, drop out of the top 10 this year, while Morgan Stanley and HSBC appeared at the 7 and 9 spots after failing to make the list by this point last year. DCM fees leapt to $173m from $137m over a year ago, a 26% increase, while ECM revenue grew to $299m from $199m a year ago, a 50% increase. MYA advisory fees, on the other hand, are down slightly to $156m from $166m in 2010. Although Credit Suisse came in first in M&A fees with $31m and 19.6% of the total, it did even not make the top 5 in ECM fee ranking. JPMorgan, meanwhile, came in second in M&A fees and took the third spot in both DCM and ECM revenues.
Posted inDaily Brief
Bladex Upsizes Syndicated Loan
Bladex has upsized its 3-year syndicated loan to $270m, from $250m, and has closed the syndication process, according to market participants. Pricing on the deal is Libor + 120bp. The multinational bank is offering fees of 75bp for $30m tickets, 70bp for $25m tickets, 65bp for $20m tickets and 60bp for $15m tickets, say bankers with knowledge of the transaction. The bank was also offering an early bird fee of an extra 10bp for any banks that committed by April 8. International banks and at least one local bank are heard to be participating in the deal. BNP Paribas and Standard Chartered are bookrunners on the loan, which is expected to close around April 27.
Posted inDaily Brief
Traveli to Get $30m Loan
Traveli, a mining firm with operations in Canada and Peru, has signed a term sheet for a $30m debt facility from West LB. The term loan will be used to develop its zinc, lead and silver mine in Peru. A spokesperson for Traveli says maturity, pricing and terms are yet to be determined, but will be finalized once WestLB completes its due diligence, which is expected to be within the next two weeks.
Posted inDaily Brief
IFC Gives Paraguay Bank Loan
The IFC has given Paraguay’s Banco Regional a $30m long-term loan to increase financing for local and small or midsized firms. The funds are directed to firms that lack financing to invest in medium and long-term projects, it adds. SMEs generate 80% of Paraguay’s employment and 60% of the country’s GDP. The loan will enable the bank to increase operations in rural areas and extend the durations of the loans it gives.
Posted inDaily Brief
America Movil Closes Syndication Process
America Movil closed the syndication process for its $4bn loan Friday, and is looking to close the deal by next week, Victor Mendez, corporate treasurer, tells LatinFinance. The deal has received commitments from over 15 banks, he adds. The spread on the $2bn 3.5-year loan is 50bp over Libor, with a 15bp commitment fee. Up-front fees for commitments in retail syndication are 7.5bp for $50m commitments, 10bp for $100m, 12.5bp for $150m and 17.5bp for $250m, according to a banker with knowledge of the transaction. The spread on the $2bn EUR equivalent 5-year loan is 60bp over Euribor, with a 20bp commitment fee, according to bankers with knowledge of the transaction. Up-front fees are 12.5bp for EUR50m tickets, 17.5bp for EUR100m, 22.5bp for EUR150m and 27.5bp for EUR250m, say market participants. The bookrunners on the first tranche are Bank of Tokyo Mitsubishi, BBVA, Citi, Intesa and Mizuho. Bookrunners on the second tranche are Bank of Tokyo Mitsubishi, Citi, Intesa, JPMorgan and Societe Generale. The banks have committed $400m each. HSBC is acting as lead arranger, but not as bookrunner. There is also a utilization fee of 15bp if America Movil draws down over 50% of the loan. Although participating bankers say the fees are tight, they are still willing to participate due to a lack of loans transactions in the market.
Posted inDaily Brief
Colombia Eyes IMF Credit Line
Colombia has indicated interest in obtaining a 2-year flexible credit line (FCL) for SDR3.9bn ($6.1bn) from the IMF. John Lipsky, first deputy managing director of the IMF, says he welcomes Colombia’s interest. “I…intend to move ahead rapidly in seeking approval by the fund’s executive board of Colombia’s request in early-May,” he says. The IMF forecasts that Colombia’s GDP will grow 4.6%, supported by strong private consumption and an expected upturn in the world economy. However, it is unclear how resilient and strong the global economic recovery will be and an adverse shock to global growth could impact Colombia’s economic growth, according to the IMF. The FCL is an instrument available to IMF member countries deemed to possess very strong fundamentals, policies, and track records of policy implementation.
Posted inDaily Brief
Brazil’s Fibria Seeks Loan
Fibria Celulose, a Brazilian paper and pulp producer, has RFPs out for an export prepayment facility, made up of a 4-year revolver and 8-year term loan, expected to be for $800m, according to market participants. The paper producer was upgraded last month to BB+ from BB by Fitch with a stable outlook. Fitch had placed Fibria on positive watch in December following its announcement of the sale of a 50% stake in Conpacel for BRL1.5bn. Fitch also assigns a BB+ rating to Fibria’s $750m in 2021 bonds.