If Latin America is to meet its demand for infrastructure, it must invest at least $250 billion annually over the coming years – double the amount of the last decade. This can only be done through multilateral cooperation
Category: Project & Infrastructure Finance
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EDB Preps Wind Funds
Energias do Brasil is preparing to raise BRL95m ($43m) in domestic bonds to support a group of wind farms, according to regulatory documents. The four units of the Central Eolica Baixa do Feijao plan to raise funds through a rule 476 restricted format placement. Additional details were not immediately available, and the company did not respond to a request for comment. The 120-megawatt project is located in the state of Rio Grande do Norte.
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Cemex Defines Timing for Clean Energy CCD
A renewable energy-focused Certificado de Capital de Desarrollo (CCD) transaction backed by Cemex is expected to be up to MXP4bn ($310m), according to a person familiar with the deal. The Capital en Proyectos de Energia vehicle will create a 10-year fund investing in clean energy generation in Mexico. Pricing is scheduled for August or September. The return structure is one typical of CCDs, with investors receiving initial capital plus a preferred return of up to 10%, followed by distributions 80% to investors and 20% to the managers. Santander is managing the transaction, with Evercore as structuring agent.
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Nexxus Closes CCD
Mexican private equity manager Nexxus Capital has raised MXP4.081bn ($312m) for a Certificado de Capital de Desarrollo (CCD) fund investing in range of mid-sized local food, construction, and fitness companies, according to a person familiar with the transaction. Demand allowed Nexxus to increase the deal from a targeted MXP2.5bn-MXP3bn size. The 10-year fund envisions a return structure with a 10% return for investors, following an 80%-20% split between investors and management. Banamex and Santander managed the transaction, Nexxus’ second CCD.
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LatinFinance 2013 Infrastructure Finance Awards
LatinFinance’s Infrastructure Finance Awards recognize the most impressive transactions and institutions in a field critical to the region’s economic progress. The awards are decided by LatinFinance’s editorial staff, informed by: […]
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LatinFinance Launches Infrastructure Finance Awards: Taking Pitches
In recognition of the growing need for infrastructure roll-out across Latin America and the increasingly sophisticated market for financing these projects, LatinFinance is delighted to introduce its inaugural Infrastructure Finance […]
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IFC chief intensifies infrastructure drive, courts SWFs
New IFC boss Jin-Yong Cai tells LatinFinance he plans to redouble the multilateral’s infrastructure finance focus to tackle a shortage of bankable deals in LatAm and other emerging markets
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Oi Considers Infrastructure Debenture
Brazil’s Oi is considering a domestic bond issue this year, potentially including a tranche eligible for preferential tax treatment under the country’s infrastructure debenture law, its director of financial markets says. “The company is comfortable with the structure,” Rodrigo Gomes Leite tells LatinFinance. “We don’t need to access the market. It must make sense and liquidity must not be a problem,” he says. Oi has met its funding needs for 2013, thanks to a recent BRL1.5bn rule 476 private debenture, ECAs and BNDES credits. Given the telecoms company’s international recognition, marketing the infrastructure debenture portion to foreigners is an option, though Gomes Leite notes most of the pitches he is considering focus on domestic retail buyers. He does not indicate a likely size or any banks already involved. Gomes Leite says there is no need to access the dollar market, but given low rates, an opportunistic liability management transaction would not be impossible under the right circumstances.
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Santa Catarina Gets BNDES Funds
BNDES has agreed to provide a BRL3bn ($1.5bn) loan package to the Brazilian state of Santa Catarina, it says. Of the funds, BRL1.8bn will be dedicated to infrastructure projects from 2012-2015, allowing for the buildout of transportation, hospital, school and government facility improvements. Another BRL979.6m will be used to pay down a 2002 loan to state-owned utility Centrais Eletricas de Santa Catarina, and BRL200m will go toward a capital increase Santa Catarina will contribute to the Banco Regional de Desenvolvimento do Extremo Sul (BRDE) development bank. Additional details were not available and BNDES officials do not respond to a request for additional comment. The BNDES funds follow a $726m 10-year international loan signed in January with Bank of America Merrill Lynch, paying 4.0%.
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Peru Wind Park Preps Long Term Funds
ContourGlobal is preparing long-term debt financing to fund construction of the $250m Talara and Cupisnique wind energy projects in northern Peru. Following this week’s closing of a $95m bridge facility with Peruvian development bank Cofide, Contour expects to tie up longer-term funds in 2Q, it says. Spokespeople at Contour and Cofide were unavailable for additional comment about the process, done through the Energia Eolica unit. Deutsche Bank was used as the funding entity for the bridge loan. The wind farms, Contour’s first wind projects in Peru as well as the county’s first large scale projects, have a 114-megawatt capacity and a 20-year offtake agreement with Peru’s RER program. They are expected to come online this year.