Category: Peru

Peruvian miner Buenaventura announced in a regulatory filing that its board has been authorized to issue unsecured debt for $350m. The company’s board will be in charge of establishing the actual amount to be issued and the terms. However, the company notes that, given current market conditions, it is still unknown if the issuance will take place.

Spain’s Endesa has filed a required tender offer for the 24% it does not already own in three listed Peruvian units, for up to $465m. The tender is being done to comply with Peruvian regulations after Spanish infrastructure and energy company Acciona and Italian utility Enel took over Endesa last year. The units include generators Edegel and Empresa Electrica de Piura – which have a combined capacity of more than 1,600MW – and distributor Edelnor.

In the face of unequivocally rough markets, Peru’s IIRSA Tramo 5, the last stretch of tollroads in the Interoceanica highways, is set to price next week, barring further meltdown, say executives close to the issuer. Three tranches of notes totaling $260m are planned: an $85m 2020, a $100m 2030 and a $75m 2030 zero-coupon bond. The zero-coupon note is being offered locally to Peruvian cash investors, with total proceeds to the issuer expected in the $18m-$20m range. BCP will jointly place the zero-coupon tranche, while lead bank BNP Paribas is responsible for the remainder. Offshore investors can access the notes directly with cash or synthetically through a CLN like structure to be issued by BNP. People familiar with the issuer’s plans say sponsors Hidalgo & Hidalgo are hoping for yields of around 7%-8%. The deal has similar collateral as the previous offerings – CRPAOs, or government-backed certificates to finance infrastructure – but the structure has some new features, including a delayed draw, which reduces the negative carry, say bankers on the transaction. Fitch rates the bonds BBB minus.

Ecuadorian concession operator Hidalgo & Hidalgo, through its Peruvian subsidiary CASA, is preparing to launch $260m in bonds to finance the fifth and final leg of Peru’s Interoceanica highways, or IIRSA Tramo 5. Through the Interoceanica V Finance vehicle it will sell $85m in 2020 bonds, $100m in 2030 bonds and $75m in 2030 zero-coupon notes. The deal features the basic characteristics of the CRPAO structure, in which Peru’s government guarantees payment on notes issued from a trust. Fitch rates the bonds BBB minus, BNP Paribas is leading the deal, having structured previous financings for Peruvian toll roads. The transaction is heard to include novel features like a delayed draw, which adds flexibility to the borrower’s access to funds. In a typical CRPAO structure, notes are issued from a trust and proceeds sit in a remote vehicle, which feeds cash in increments to the concessionaire as it meets construction milestones.

The Peruvian unit of Votoratim Metais has bought a roughly 8% stake in purchased miner Milpo for just over $200m. The purchase of 74.8m shares of miner Milpo at average of 7.72 soles per unit was done August 5-20, Milpo says. The stock rose from PES6.70 to PES7.40 during that period. The Brazilian conglomerate has long had its eye on the producer of zinc, iron and copper. In April, Votorantim made an offer to boost its then 25% piece in Milpo to a controlling stake. The $3.33 per share offer, raised from a $2.87 offer in March, was rejected on the grounds that it undervalued Milpo.

A consortium formed by local developer Grana y Montero and logistics operator Oiltanking Peru has won the concession to build and operate a $107m, 245km pipeline that will transport will transport up to18,000 bpd of liquefied petroleum gas and other hydro carbons from a pumping facility operated by Argentinean group Pluspetrol in Pisco to a storage facility in Lurin, a city near Lima, the Peruvian investment promotion agency ProInversion says. The consortium will build the pipeline, known as Poliducto Pisco-Lurin and operate and maintain it for 10 years, ProInversion says. An estimated $70m will be used for the construction of the pipeline, while $37m will be spent in operations and maintenance in the 10 year period, the agency adds.