Mexico will receive $1.1bn in loans from the World Bank and the IDB. The loans will carry a variable rate based on Libor, according to the Secretaria de Hacienda y Credito Publico. The financing package consists of loans from the World Bank for a combined $700m and one from the IDB for the remaining $400m. Both carry an undisclosed floating rate based on Libor. The first World Bank loan, for $400m, has an amortization period of 14 years, the second, for $250m, has a 12-year amortization, while a $50m concessional loan to a clean technology fund has an undisclosed interest rate and amortization period. The $400m loan from the IDB has a 20-year amortization schedule with a 5-year grace period and an interest rate based on Libor.
Category: Loans
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CS Leads IB Revenue Chase
With just a month remaining in the year, Credit Suisse holds the top position for LatAm investment banking revenue as of November 29, according to Dealogic. The Swiss bank has booked $163m, or 10.7% share, to lift it from the $141m (10.0%) it had made at this time in 2009, when it claimed second place. CS benefits from a table-topping $77m in ECM fees, good for a 14.2% share, which is up from fifth place ($47m) a year earlier. The bank sits in second place in the M&A revenue table, with $56m (10.0%). Citi, in second place for overall IB revenue with $130m (8.5%), jumps up from fifth ($104m) a year ago, while JPMorgan’s $128m (8.4%) sees it down to third this year from first ($170m) for the corresponding period of 2009. BTG Pactual makes a notable climb to fourth this year ($119m) from 10th ($50m) last year, mostly on the strength of $70m from the ECM platform. Santander has dropped to ninth ($75m) from third ($115m) a year ago, and Bradesco to 10th ($50m) from fourth ($114m). The total revenue pool is at $1.52bn, up from $1.42bn at this time in 2009. Overall EM IB revenue was $11.4bn through November 19, up 20% on full year 2009 and the highest total since 2007 YTD ($12.8bn), says Dealogic. EM now accounts for 20% of global IB revenue in 2010 YTD, the highest proportion on record, says the data tracker. “China clients account for 39.5% ($4.5bn) of emerging market IB revenue in 2010 YTD, followed by Brazil with 8.3% ($943m) and India with 7.6% ($877m),” says Dealogic. It adds that ECM was the biggest revenue generator. JPMorgan leads the EM IB revenue ranking with 5.3%, followed by Goldman Sachs and Morgan Stanley, both with 4.5%. IB includes M&A, ECM, DCM and loans.
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Nicaragua Wind Project Signs Loan
The Amayo II wind project has closed on a $45m 15-year non-recourse project financing from FMO and Cabei. The facility consists of a $42m senior loan and a $3m mezzanine loan. Senior loan participants include Cabei, FMO, EKF and BIO. The borrower is Consorcio Eolico Amayo (Fase II), a subsidiary of AEI, Centrans Energy Services and Energia Eolica de Nicaragua. The wind project consists of 11 wind turbines capable of producing 23.1 MW of electricity. Output is fully contracted under long-term, 15-year PPAs with local power distribution companies Dissur and Disnorte.
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Alfa Invites Banks to Loan
Mexican conglomerate Alfa has set bank meetings for New York Tuesday and Mexico next Friday, according to bankers with knowledge of the transaction. It is heard to be offering a spread of 300bp over Libor on a leveraged grid for its syndicated loan to back the $600m purchase of Eastman Chemical assets in the US. A $600m 3-year bullet facility is expected to be syndicated. Credit Suisse and HSBC are the leads. Alfa’s purchase of Eastman’s polyethylene terephthalate resins business and related assets and technology of its Performance Polymers segment was done by Alfa unit DAK Americas. BAML advised Eastman while HSBC worked on the buyside. Fitch downgraded Alfa subsidiary Grupo Petrotemex to BB (stable) from BB+, including notes issued by DAK, amid fears over leverage incurred in the purchase. On a pro-forma basis, Fitch estimates that Petrotemex’s total debt-to-Ebitda, including 12 months of Eastman assets operations, could reach 3.3x in 2010 before gradually decreasing. This compares negatively with a total debt-to-Ebitda ratio of 2.2x for the 12 months to June 30, and falls outside Fitch’s prior leverage estimate of 2.0x-2.5x. Nonetheless, Fitch notes that the investment is strategic and positive for Petrotemex, and should strengthen its business as it gains PET market share in North America.
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Argentina Secures IDB Funds
The IDB says it has approved a $200m loan to Argentina to support science and technological innovation in strategic economic sectors such as agribusiness, energy, health and environment. The credit line was approved for a 25-year term, with a grace period of 5 years, and an interest rate based on Libor.
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BCP Eyes Further Funding
Banco de Credito del Peru (BCP) has finished its issuance for this year but will likely return for more in 2011. “We’re always looking for funding,” Gonzalo Alvarez-Calderon, BCP’s head of international business, tells LatinFinance. He adds that BCP has been seeing 20% annual loan growth, which it will continue to support by borrowing. The bank has not decided how much it will look to raise next year. It recently closed a $350m 3-year syndicated loan priced at 175bp over Libor, which it upsized from an original $300m. The deal via Citi and Standard Chartered was syndicated to 16 banks, including Chang Hwa, Bank of Taiwan and Malayan Banking Berhad. Alvarez-Calderon says the leads were incentivized to bring in Asian institutions. Total demand was $387m. The deal is for general corporate purposes, in particular to fund loan growth. The facility follows an $800m September issue of 2020 bonds. The BBB/Baa2 deal priced at 99.763 with a 5.375% coupon to yield 5.406%, or UST plus 265bp, the tight end of 275bp area guidance. Bank of America Merrill Lynch and Deutsche Bank managed the sale, the first bond from BCP since a $250m hybrid in November 2009.
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Honduras Gets Fiscal Reform Loan
Honduras will receive $45.8m from the IDB to support the country’s fiscal reforms, and improve its tax system and state utility revenues. The financing will consist of a $32.06m, 30-year loan with a 5.50-year grace period and a fixed income rate, and a $13.74m, 40-year loan with a 5.50-year grace period and an annual interest rate of 0.25%.The financing will be disbursed in 2 tranches of $22.9m. The first will come after the approval of a tax reform designed to increase collection rates, efficiency and equity in the tax system. The second tranche will come after the approval of other tax regulations. The country will also enact a law against tax evasion. In addition, the government will take steps to raise the revenues of the state-owned electricity company, Enee, and the telecommunications company, Hondutel.
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Mexico Gets $1.35bn in Loans
The World Bank has given a $1.25bn 17-year loan to support Mexico’s Oportunidades Program, to help poor families, and a $100m 12-year loan to the Mexico Water Utilities Efficiency Investment Project. The loan for Oportunidades is expected to help benefit 5.8m of the country’s poorest families, it says. The project will cost $9.90bn, $1.25bn of which will be financed by the World Bank and $8.65bn by the government counterparty. The first World Bank loan for Oportunidades was approved in April 2009. The $100m loan for the Mexico Water Utilities Efficiency Improvement Project is aimed at improving the efficiency of utilities, through technical assistance and financing. The project will cost $200m, $100m of which will be financed by the World Bank and $100m by the government counterparty. The project is expected to end on December 2014.
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Itau Chile Loan Builds
Banco Itau Chile has garnered several commitments on a $150m 2-year term loan facility it is syndicating, according to bankers with knowledge of the transaction. HSBC, RBS, Wells Fargo, Commerzbank, Citi, Bank of America, Credit Agricole and BNP Paribas are joint leads on the transaction. Bank meetings were last Wednesday. Commitments are expected November 23 and the deal will close early December. Proceeds will be used to lend to Chilean corporates. The spread offered is of Libor plus 90bp.
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Quiroz Galvao Heard Oversubscribed
Quiroz Galvao is finalizing allocations for a $575m 7-year syndicated loan for Alpha Star, with the deal substantially oversubscribed, according to a banker leading it. Final allocations are expected within the next few days. Santander and Citi are leading the transaction, with proceeds being used to build oil platforms. The spread is 250bp over Libor for the construction period and 225bp over for the post-construction period, say bankers with knowledge of the transaction.