Moody’s has downgraded Mexican mortgage lender Hipotecaria Su Casita to C from Ca. The change comes after Su Casita missed payments of MXP300.0m on principal and MXP6.0m on the interest for its Casita 06 notes, as well as principal and interest on its Casita 01810 and Casita 01910 notes for MXP384.5m and MXP40.2m, respectively. Moody’s says Su Casita’s current liquidity position is weak, and the C ratings reflect the potential for above-average loss severity on Su Casita’s senior unsecured debt as the company continues to negations with all its creditors on a restructuring.
Category: Regions
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Pemex Loan Generates Interest
Mexico’s Pemex has received over $4bn worth of commitments for its $3.25bn dual-tranche loan, according to bankers not running the transaction. The deadline for commitments was last week, with signing expected by the end of October. Sizeable commitments received include a $250m commitment from Sumitomo across both tranches, a $150m ticket from Intesa for the 5-year tranche, and a $75m commitment from EDC to the 3-year tranche, according to market participants. The first tranche is a $1.25bn 3-year revolver, to refinance a loan that matured in September, for which it is offering 125bp over Libor. Bookrunners are Barclays, BBVA, Credit Agricole (admin agent) and RBS. It also wants a new money 5-year term loan for $2bn at L+150bp. BBVA (admin agent), BNP Paribas, Credit Agricole, Citi, HSBC and Inbursa are bookrunners. The revolver is to refinance a loan taken in 2007 for $1.25bn that was priced at Libor+20bp. Fees for participation in the revolver range from 25bp-60bp for $100m, $75m, $50m and $35m tickets. On the term loan, fees range from 45bp to 85bp for $150m, $100m, $75m and $50m commitments.
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CAF Forges Russia Link
Multilateral CAF and Russian development bank Vnesheconombank have agreed to work together to explore opportunities to co-finance projects, offer credit lines and exchange information.
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Panama City Gets CAF Financing
Multilateral CAF says it has approved a $120m loan for Panama’s ministry of finance and economy to improve sanitary conditions in Panama City. Terms were not disclosed and CAF officials could not be reached for comment.
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Banco Popular to Issue Bonds
Colombia’s Banco Popular, part of Grupo Aval, says it plans to issue COP200bn ($111m) in local bonds with the possibility of increasing the amount by another COP100m depending on demand. The issue will have 4 pieces. Tranches due in 18, 24 and 36 months will be pegged to IBR and a 3-year piece will be pegged to IPC. Proceeds will be used for working capital. The notes are rated AAA and the bank will lead the sale itself.
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Colombia Re-Assigns Spending
Spending plans of Colombia’s new government will remain broadly in line with the previous government’s, though some spending will be re-assigned and increased, German Arce, director of public credit and the national treasury tells LatinFinance. “We will re-assign around $1.5bn equivalent towards housing, infrastructure, agriculture, and science and technology education,” says Arce. He adds that the government will raise a further $2bn equivalent to go towards these sectors in 2011 and that this will largely be funded in the domestic capital markets. Arce adds that the government would not sell off strategic assets to fund projects, such as those relating to the oil sector but says some non-strategic assets, such has some small electrical plants could be sold off. Funding plans for 2011 include a dollar benchmark, and Colombia could also look to tap the Asian markets and look for investment from the Middle East. Patricia Morena, subdirector of external financing added.
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Findeter to Issue Credit Deposit Notes
Colombian state-owned development finance agency Findeter is planning to issue COP250bn ($138m) in credit deposit notes via a Dutch auction. The issuance could be doubled if demand is strong enough, Findeter says. The AAA rated issue will be done in 4 tranches. An 18-month piece will pay a spread over IBR, a 2-year tranche will pay a spread over DTF and 3-year and 5-year pieces will pay a spread over IPC. Proceeds will be used to finance lending. The agency is structuring and managing the operation itself.
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Correction: PDVSA Launches Bond Sale, Swap
An October 19 daily brief entitled “PDVSA Launches Bond Sale, Swap” incorrectly states the coupon on a bond and the exchange price offered to holders. It is a 0% 2011 bond, and holders will receive $1,095 per $1,000 if participating after the October 28 early acceptance date.
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Singapore SWF Buys Into Odebrecht
Brazil’s Odebrecht Oil and Gas (OOG) says Temasek, Singapore’s $133bn sovereign wealth fund, has invested $400m in the company. According to Odebrecht, the investment will allow Temasek to expand its footprint in LatAm, including Brazil, as well as Angola. The SWF will take a minority stake and Marcelo Odebrecht will remain chairman of the new company board. “There is a strong identity between the business cultures of Temasek and Odebrecht,” says Miguel Gradin, president of OOG. “This long-term partnership is consistent with the OOG’s growth strategy as it increases the company’s financial strength and contributes to better serve our clients in Brazil and worldwide, including demands related to exploration, development and production in pre-salt.” Odebrecht adds that it is planning to invest $3.5bn over the next 3 years.
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Sofol Preps MXP Issue
Mexican lender Consupago is readying a cross-border sale of MXP750m in 2013 bonds. The Sofol specializing in payroll discount loans has issued yield guidance of 9.5%-10.0%, with the deal expected to price today or tomorrow, according to a banker on it. The issue is denominated in pesos, with payments in USD, and will raise funds to increase the bank’s capital. BCP Securities and GBM International are managing the BB minus sale, which was presented to investors last week and comes under Consupago’s $300m shelf.