Banco de Chile is heard getting up to $300m in potential commitments for a $150m 3-year bullet loan, according to bankers away from the deal. The loan priced at Libor plus 110bp, say bankers with knowledge of the transaction. Up-front fees are heard at 75bp for commitments of $20m, 70bp for $15m-$19m tickets, 60bp for $10m-$14m, and 50bp for $5m-$9m. A banker away from the deal says the combination of the up-front fee and the 110bp spread over Libor yields an attractive deal for participants. The deadline for commitments for the $150m 3-year loan is today, with final allocations expected the following week. The loan was marketed to Asian lenders, after bank meetings took place in Taiwan in December. Standard Chartered and Wells Fargo are joint leads.
Category: Loans
Argentina Signs IDB Loan
Argentina will receive a $40m loan for the IDB to improve services outside the capital. The 25-year loan has a 5-year grace period and an interest rate based on Libor. Local counterparts will kick in funds totally $10m.
LatAm Syndicated Loans Outlook
Rekindling Loans
International banks are eager to re-enter the LatAm bank market. But cost of funds, spread compression and better DCM terms will keep a lid on volume.
BEST INVESTMENT BANK
Credit Suisse is back on top again, aiming to leverage relationships throughout emerging markets to further stoke the coals of its LatAm investment banking engine. The Swiss house coasts on rising revenue from M&A, equity and fixed income, but has not slipped into complacency.
BEST SYNDICATED LOAN
At a time when the syndicated loan market was still thawing from a deep, crisis-driven freeze, Americas Mining Corporation (AMC), a wholly-owned subsidiary of Grupo México, provided an encouraging sign.
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In just three months of extremely choppy external markets, Project Jaguar scored a coup.
Brazil M&A: Valuations Up, Fees Fall
Brazil is on a path for record-breaking M&A volume and sky high valuations this year, but advisory fees are lagging.
IDB Lands Debut Paraguay A/B Loan
Banco Continental has signed a $40m syndicated A/B loan via the IDB, which will go towards increasing lending to small and mid-sized businesses. The A loan, from the IDB, is for $25m and is for 5 years, with a 2 year grace period. The B loan is divided into 2 tranches. The first tranche is a $5m 3-year bullet funded by Dexia Micro-Credit Fund, managed by BlueOrchard. The second tranche is for $10m, with a 5-year maturity and 2-year grace period. Participants were responsAbility SICAV (Lux) Mikrofinanz-Fonds and responsAbility SICAV (Lux) Microfinance Leaders, managed by responsAbility Social Investments. It is the first loan in Paraguay to be syndicated by the IDB. “We expect to see more transactions to fund financial institutions committed to providing financing in a way that is relevant to development and financially sustainable,” Daniela Carrera-Marquis, head of the IDB’s financial markets division, tells LatinFinance. “Investors are becoming more interested in transactions that are financially viable, but also contribute to sustainability,” she adds.
Itau Chile Grows Syndication
Banco Itau Chile has signed a $200m 2-year syndicated loan, which it upsized from the $150m originally planned, following oversubscription. Closing and funding is expected Friday. HSBC, RBS, Wells Fargo, Commerzbank, Citi, Bank of America, Credit Agricole and BNP Paribas are joint leads on the transaction. Each of the banks committed $25m, according to bankers with knowledge of the transaction. Retail commitments were heard to have come from 2 other banks, one of which was a Taiwanese bank. The spread on the loan is Libor plus 90bp, with proceeds being used to lend to Chilean corporates.
Banco de Chile Heard Launching Loan
Banco de Chile is looking to borrow a $150m 3-year syndicated loan via Standard Chartered and Wells Fargo, according to bankers with knowledge of the transaction. The bank is heard to be looking to launch the transaction this week in Asia. Bankers away from the deal expect pricing at 110bp over Libor, which one banker says is attractive pricing for the borrower.