Brazilian oil and gas logistics specialist GranEnergia is in discussions with banks for non-recourse financing to help build three offshore maintenance platforms requiring a $500m total investment, according to a person familiar with the matter. The first of the three platforms is to be used by Petrobras. It is negotiating with Brazilian, European and Asian banks. GranEnergia is a subsidiary of GranInvestimentos a vehicle for the Gradin family.
Category: Project & Infrastructure Finance
Posted inDaily Brief
Power Plant Seeks Infrastructure Debenture
Sponsors of the Termeletrica Pernambuco III power project plan to raise BRL300m ($135m) in infrastructure debentures in Brazil’s domestic bond market, according to regulatory documents. The project plans four series of 2025 inflation-linked debentures that vary slightly in their amortization schedule. The borrower expects to pay a fixed interest rate equal to that of the NTN-B government bond at the time of pricing plus up to 380bp. Investor meetings should start October 23, ahead of bookbuilding beginning November 27 and finalizing in December. The issuer is raising funds to repay BRL270m debt to Caixa Economica Federal. Itau is managing the transaction. The BRL450m 201MW oil-fired plant is located in the northeastern state of Pernambuco.
Posted inDaily Brief
Second Life in PPPs for Failed Concessions: Rousseff
Brazilian infrastructure concessions that fail to attract bids at auction could be offered as public-private partnerships instead, President Dilma Rousseff told investors in New York Wednesday. Rousseff made particular reference to the BR-262 project in Minas Gerais and Espirito Santo that was auctioned earlier this month without a single bid. “Initially, the investors believed it was viable, but they later began to worry about the amount of the toll. We’re reviewing if this needs to become a PPP, or whether it will be a public project,” she says. Brazil has struggled to encourage infrastructure investment, despite its announcement last year of a BRL133bn ($66bn) investment program. Brazil had increased credit, kept spending under control, and was committed respecting institutions and contracts, she said.
BNDES President Luciano Coutinho told the same audience that Brazil needed the private sector project financing to step in to “share the burden, because the BNDES is already overburdened.” Coutinho highlighted the potential of infrastructure bonds, and the need for a deepening of the domestic capital markets. To this end, he says BNDES is trading more bonds in the secondary market, and wants to create a temporary fund to trade bonds with the aim of stimulating liquidity. Rousseff and Coutinho spoke at the Brazil Infrastructure Opportunity seminar in New York Wednesday.
Posted inMagazine
Best Infrastructure Financing, Mexico
Attracting international investors into a local currency bond to finance expansion of a toll road has broadened the investor base for Mexican infrastructure
Posted inMagazine
Best Infrastructure Financing, Brazil
A toll road deal advanced Brazilian project funding when it sold the first large, widely-marketed infrastructure debenture to international accounts
Posted inMagazine
Best Infrastructure Bank
The global investment bank has had a prominent position on numerous leading infrastructure financings, incorporating bonds and loans, as well as local currencies and dollars
Posted inMagazine
Best Infrastructure Law Firm
An extensive infrastructure financing team covering Latin America makes White & Case an important player in a number of the region’s most impressive deals
Posted inMagazine
Brazil infrastructure: The way ahead
Investors remain skeptical that Brazil’s concession program for financing much-needed infrastructure projects will succeed where past attempts have failed
Posted inDaily Brief
Lima Road Targets Debt by Year-end
Ruta de Lima, a $900m Peruvian toll road project expected to require some $700m in debt financing, is likely to raise funds close to the end of the year, according to people familiar with the matter. A combination of bonds and project finance loans could be on the table for the Odebrecht-sponsored project, now in the due diligence stages, with one person following the deal expecting the borrower to primarily target the international bond market. BBVA, Goldman Sachs and BCP are working as bookrunners and MLAs. Ruta de Lima is 114km project done under a 30-year concession.
Posted inMagazine
Infrastructure deal of the quarter century: Odebrecht Oil & Gas
Norbe VIII and IX Drillship bond, 2010 Project bonds have long been seen as a tool that could revolutionize infrastructure finance in Latin America, opening funding possibilities on a scale […]