Category: Peru

Maple Energy, an integrated energy company with assets and operations in Peru has raised $24.8m equivalent by selling 7.9m shares at £1.60 a share. The shares were offered at a 7.44% premium over £1.49, last trade before the May 9 announcement. Proceeds of the transaction will pay for a 3.1% stake in Peruvian natural gas and power Aguaytia Energy.

Enhancing the business environment in Peru by further simplifying the tax framework and external trade is critical for the country, according to the IMF. “These reforms, along with those being implemented to deepen domestic capital markets, such as the recent changes of investment norms for private pension funds, would help strengthen Peru’s competitiveness,” the multilateral says. A delegation of the IMF visited Peru recently to discuss a third review of Peru’s $278m 25-month stand-by arrangement.

Details on a $400m project loan for the construction of a regasification terminal in Peru – dubbed Peru LNG – have emerged, but at least one bank market participant senses a flex on the way. “[The leads] are checking in [with lenders] on whether an extra 25bp might help,” says one potential lender who was approached. It is not clear whether the extra basis points would be added to the margin or the fees. In the construction period of three years, the facility is heard paying Libor plus 75bp. In the post-completion period of 12 years, the pricing starts at 100bp and steps up in increments of 12.5bp every three years, say bankers not on the deal. In years 4-6, the facility pays Libor plus 112.5bp, in years 7-9 125bp, and in years 10-12, 137.5bp. SocGen and BBVA are leading and joined by MLAs ING, Sumitomo Mitsui and Mizuho, which signed on prior to launch. The rest of the financing package supporting the more than $3bn project includes ECA guarantee facilities from the US Export-Import Bank ($400m), Export-Import Bank of Korea ($150m) and Italy’s Sace export credit agency ($250m). There is also a $300m IFC A loan, a $400m IDB A loan, a $150m direct loan from the Export-Import Bank of Korea, and up to $350m in local bonds underwritten by Peruvian banks and arranged by Banco de Credito del Peru. Sponsors Hunt Oil, SK Energy, Repsol YPF and Marubeni have contributed more than $1bn in equity.

Maple Energy, an integrated energy company with assets in Peru, is set to price Friday ordinary shares at $0.01 each to institutional investors in a private placement for aggregate gross proceeds of approximately $20m. Maple intends to use proceeds to repay costs of acquiring approximately 3.1% in economic and voting interest in Aguaytia Energy, as well as fund capital expenditures associated with a proposed Peruvian ethanol project. Canaccord Adams and Mirabaud Securities are the leads, with BCP as a co-manager.

Peru’s central bank is expected to keep the reference interest rate unchanged at 5.50% at Thursday’s policy meeting, according to Merrill Lynch. “With inflation moderately decelerating last month – likely marking the peak this year and after raising rates and reserve requirements last month, we think the [Peruvian central bank] will step back this month but maintain its hawkish bias,” Merrill adds.

Inflation in Peru – the fastest growing LatAm economy – slowed to 0.15% in April, a considerable drop from the previous month’s 1.04%, according to the Peruvian government statistics institute INEI. This is below market forecasts of 0.35%-0.40%, says Carola Sandy, analyst at Credit Suisse. Year-to-date, inflation in the Andean country adds up to 2.34%, the institute reports. External pressures could aid a further decline in Peru’s inflation. “I think what’s important for Peru is the trend in food inflation globally,” Sandy says. “We are expecting food inflation to decline and this should help inflation in Peru to continue to decline,” she adds.

Peruvian fishmeal and fish oil producer Pesquera Exalmar has closed a 6-year $80m export-backed term loan, its first in the international market. The facility is secured by assets including vessels, licenses and processing plants, as well as export receivables from customers in Germany, Japan and China. It pays Libor plus 350bp. The unit of Corporacion Exalmar will use proceeds to pay down debt and fund its purchase of 50% of rival Corporacion del Mar for an undisclosed amount. WestLB arranged the loan, which included as participants BNP Paribas, Citi, Rabobank, Natixis and Israel Discount Bank.

Spain’s Empresa Isonor Transmision has been awarded two 30-year concessions totaling $181m by Peru’s Proinversion privatization agency to build and operate transmission lines. The 760km Mantaro-Carveli-Montalvo line should require investment of $145.6m, while a 200-kilometer Machupicchu-Cotaruse line needs $35.4m. The electricity is expected to be used partly for several mines being developed in the southern part of Peru. Isonor beat out Interconexion Electrica of Colombia, Terna Participacoes of Brazil and Abengoa Peru. Abengoa won a 30-year concession in Feburary for the 700km $106.1m Carhuamayo-Carhuaquero line, for which WestLB is arranging financing.

Peruvian beverage multinational Ajegroup is seeking to syndicate a $100m 5-year senior secured term loan and a $15m 3-year revolver, say bankers familiar with the terms. The bottler is raising a facility for Mexico, which will be denominated in MXP and dollars, but guaranteed by the Peruvian parent. The entire facility will pay Libor or TIIE plus 350bp. Citi and Rabobank are leading and proceeds will likely support Mexican operations. The deal marks a debut financing for the group, which has thus far used internal resources to fund its overseas expansion. The firm is present in all the countries of South and Central America above Peru and now has its sights set on Asia. Annual sales last year were estimated at $450m. A 2005-2010 strategy focuses on internationalization, consolidation and innovation. The newest venture is beer, following the launch last year in Peru of the Franca brand.