Mizuho is looking to take LatAm corporates and financial borrowers to the Japanese syndicated loan market. The idea is to match increasing appetite from Japanese lenders for foreign names with borrowers’ need for funding sources and diversification. So-called Ninja loans are the bank market equivalent of Samurai bonds issued by foreigners in the Japanese market. “We are currently introducing the product to our clients in Latin America, following a number of arrangements of Ninja loans for clients in the US,” David Costa head of international finance for the Americas at Mizuho, tells LatinFinance. Mizuho has executed Ninja loans for Lehman and Morgan Stanley in Japan in the past year. In LatAm, it has participated in structured trade financings for Pemex, Telmex and Usiminas in the last 12 months. Loan sizes in Japan can range from JPY10bn to 50bn, similar to Samurai bonds. They can be denominated in dollars as well as Yen, and carry simpler documentation than bonds, according to Mizuho.
Category: Regions
Moody’s Lowers GMAC Mexico
Moody’s has downgraded GMAC Mexicana SOFOL’s local long- term debt rating to A3 from A1, and GMAC Financiera SOFOL’s to A3 from A1, it said. The action followed the agency’s downgrade of General Motors Acceptance Corporation ‘s long-term debt rating to Ba3 from Ba2. The rating outlook on GMAC rating is negative.
Colombia TES Issuance to Rise 18% in 2008
In 2008, Colombia plans to issue COP22.6trn in TES, marking an 18% pickup in issuance of the country’s local currency bonds. In 2007, Colombia raised COP19.1trn, which represented 71% of the country’s debt service expense. In the coming year, Colombia plans to continue its net reduction of debt, but new paper will correspond to 90% of the estimated debt service. The ministry of finance also plans to keep the fiscal deficit at 3.3% in 2008, while the budget deficit is set to rise to 1.4% from 0.7% in 2007.
Mizuho Targets LatAm Borrowers for Yen Loans
Mizuho is looking to take LatAm corporates and financial borrowers to the Japanese syndicated loan market. The idea is to match increasing appetite from Japanese lenders for foreign names with borrowers’ need for funding sources and diversification. So-called Ninja loans are the bank market equivalent of Samurai bonds issued by foreigners in the Japanese market. “We are currently introducing the product to our clients in Latin America, following a number of arrangements of Ninja loans for clients in the US,” David Costa head of international finance for the Americas at Mizuho, tells LatinFinance. Mizuho has executed Ninja loans for Lehman and Morgan Stanley in Japan in the past year. In LatAm, it has participated in structured trade financings for Pemex, Telmex and Usiminas in the last 12 months. Loan sizes in Japan can range from JPY10bn to 50bn, similar to Samurai bonds. They can be denominated in dollars as well as Yen, and carry simpler documentation than bonds, according to Mizuho.
Moody’s Lowers GMAC Mexico
Moody’s has downgraded GMAC Mexicana SOFOL’s local long- term debt rating to A3 from A1, and GMAC Financiera SOFOL’s to A3 from A1, it said. The action followed the agency’s downgrade of General Motors Acceptance Corporation ‘s long-term debt rating to Ba3 from Ba2. The rating outlook on GMAC rating is negative.
Mexican Timber Firm Plots Bond Sale (1)
Timber producer Agropecuaria Santa Genoveva has filed to sell up to MXP2.2bn in 20-year bonds, in one or two offerings. The notes are backed by zero-coupon bonds purchased from the federal government by a special purpose vehicle. Proceeds from the AAA (mex)-rated notes fund a timber project. BBVA will manage the offering.
Mexican Timber Firm Plots Bond Sale
Timber producer Agropecuaria Santa Genoveva has filed to sell up to MXP2.2bn in 20-year bonds, in one or two offerings. The notes are backed by zero-coupon bonds purchased from the federal government by a special purpose vehicle. Proceeds from the AAA (mex)-rated notes fund a timber project. BBVA will manage the offering.
Banco Industrial Gets Honduras’ Banco del Pais
Guatemala’s Banco Industrial has agreed to acquire 90% of Grupo Financiero Banpais for an undisclosed sum. Senior officials had told said Industrial would pay about $150m for the Honduran bank when they were working on the transaction. “This is the best way to enter that important market,” Luis Prado, international banking director tells LatinFinance, adding that it is the first step in a regional expansion plan that also includes organically building operations in El Salvador and southern Mexico. The transaction is being financed with shareholder equity and a loan from Standard Bank.
DF Sells Bonds, Mulls Offering More
The Mexico City government is considering the sale this week of the remainder of bonds authorized under a MXP4.5bn shelf, following a MXP3.0bn sale last week. The deal included a MXP575m 2027 tranche at 8.65% and a MXP2.43bn 2017 tranche at TIIE minus 5bp. Proceeds go towards 20 different public works projects, mostly relating to the DF metro and water systems. JPMorgan and Deutsche Bank managed the sale.
Petrotemex Wraps up $150m Relationship Loan
Mexico’s Petrotemex has closed a $150m dual currency loan. The transaction includes practically all of holding company Grupo Alfa’s relationship banks. Led by Santander and Standard Chartered, it includes MLA participation from Calyon, JPMorgan, Banamex, BBVA and HSBC. Barclays and BofA also had participant-level tickets. The facility pays on a net consolidated debt to Ebitda grid, which, at above 3x leverage, pays 60bp over TIIE and 70bp over Libor. In the 2.5x-3.0x band, where it was out of the box, it pays 45bp and 55bp respectively. At 2.0x-2.5x, it pays 30bp and 45bp. And at less than 2.0x, it pays 20bp over TIIE and 40bp over Libor.