Mexican government housing agency Fovissste has set a August 17 pricing date for an up to MXP4.2bn ($357m) equivalent UDI-denominated RMBS, according to a banker on the deal. Proceeds from the 2040 bond will be used to originate mortgages. BBVA Bancomer, Bank of American Merrill Lynch, IXE, Banorte are bookrunners. The bonds are rated AAA.
Category: Structured Finance
Posted inDaily Brief
CentAm Needs $13bn in Energy Project Financing
Central America will need an estimated $13bn to finance 7,000MW of generation capacity by 2015, according to Hector Rodriguez, coordinator of ARECA, a renewable energy project supported by development bank Cabei. As a result, many countries in the region are slashing taxes and import fees relating to renewable energy projects. The region is looking to satisfy an average annual increase in electricity demand of 6% over the last quarter century. Honduras, for example, passed a law that eliminated all taxes and tariffs on the purchase of materials and services for renewable energy projects, and provides a financial incentive worth 10% of the base price of electricity. “That was definitely part of the motivation in creating our wind project,” Jay Gallegos, CEO of MesoAmerica Energy, tells LatinFinance. The company’s wind energy project, Energia Eolica de Honduras, began operations in June and will generate 102MW. The project cost $260m and was financed primarily by Globeleq Generation. The country plans to build 21 new energy projects, including five large hydroelectric projects with investment price tags ranging from $110m-$700m. Panama, meanwhile, plans to add 22 renewable energy projects over the next four years, adding 1,061MW to its system at a cost of $4.37bn. Italy-based ENEL, Europe’s largest energy provider, has projects in five Central American nations and, according to Francesco Starace, CEO of ENEL Green Power, plans to expand further.
Posted inDaily Brief
Petrochemical FIDC Approved
Brazilian regulators have approved a BRL514m ($328m) Fundo de Investimento em Diretos Creditorios (FIDC) backed by Petrobras credit receivables from Braskem and its subsidiaries, according to the CVM. The 3-year FIDC Insumos Basicos da Industria Petroquimica plans to pay investors the DI rate plus up to 1.0%. Itau and Santander are managing the sale, which has yet to be rated. IntragDTVM is the administrator.
Posted inDaily Brief
OHL Gets BNDES Loan
OHL Brasil and its Autopista Litoral Sul subsidiary will receive a BRL810.1m ($519m) loan from development bank BNDES. The loan will go towards the operation, rehabilitation, improvement and infrastructure development for the Autopista Litoral Sul highway. The financing is divided into three parts. A BRL508.1m component amortizes over 12 years and paying TJLP+2.32%. A BRL298m tranche amortizes over 10 years and pays the same rate. A BRL4.1m portion amortizes over 10 years and pays the TJLP flat.
Posted inDaily Brief
CAF Tops up 2016
Regional development bank Corporacion Andina de Fomento (CAF) raised a $500m Thursday through a retap of its 3.75% January 15 2016s. The bond was priced at 100.858 to yield 3.542% or UST+180bp, with Credit Suisse and Goldman Sachs acting as leads. The bond was originally issued in July last year for a $600m size and priced at 99.396 to yield 3.873% or 210bp over. On that occasion, Credit Suisse and HSBC brought the deal to market with intention of adding a new benchmark at the shorter-end of its dollar curve. The issuer is rated A1/A+/A+.
Posted inDaily Brief
Ecuador Gets China Loan
Ecuador has signed a $571m loan with China’s Eximbank to fund the Sopladora hydroelectric project. The 15-year loan will carry a 6.35% interest rate and a 4 year grace period. The loan represents 85% of the total cost of $670m required to fund the project. The 487MW project is one of several being built by the country.
Posted inMagazine
Green Shoots on the Isthmus
The need to reverse Central America’s reliance on fossil fuels is expected to spur an investment boom in renewable energy.
Foreign companies have responded, but challenges lie ahead.
Posted inDaily Brief
Peru Secures $300m CAF Loan
Regional development bank CAF has extended an up to $300m 9-year loan to the government of Peru to help finance an electric transportation system. The loan carries a 3-year grace period and pays Libor+110bp during the first 8 years and jumps to +210bp in year 9.
Posted inDaily Brief
Espirito Santo Gets IDB Loan
Banco Espirito Santo will receive a $50m loan from the IDB to lend to infrastructure, renewable energy and energy efficiency projects in LatAm and the Caribbean. The transaction will also mobilize approximately $80m from B-lenders, depending on market conditions. Proceeds will support the production of fossil fuel alternatives and greenhouse gas emission reduction opportunities. The loan has a 7-year tenor with an option to extend for another 3 years. The project will be managed by Espirito Santo’s New York branch.
Posted inDaily Brief
BNDES Sacrifices Size for Pricing
Brazilian development bank BNDES was thought to have sacrificed size for tighter pricing Wednesday after it printed a CHF200m ($239m) 5-year bond at 99.674 to yield 2.818%, or mid-swaps plus 140bp, in-line with guidance. Size came lower than the CHF250m some investors were hearing during roadshows last week, but the borrower was seen satisfied with the comparatively attractive spread and happy to settle for a smaller amount. “We could have done up to $1bn, but having a well priced benchmark is more important than taking size out of the market,” says a banker familiar with the deal. Swiss-based institutional investors and private banking accounts represent the bulk of the 40 orders. Yet with BNDES’s 4.25% EUR 2017s trading wider some investors declined to participate and maintain their current exposure to the BNDES name. “The credit is attractive but with the EUR [bond] yielding mid-swaps plus 165bp, mid-swaps plus 140 on today’s bond looks less attractive,” says a BNDES holder of its USD and EUR debt who decided to pass on the latest issue. The CHF tap is part of BNDES’ plan to diversify its investor base and comes in line with former issues done in USD and EUR. Andean multilateral CAF’s 2015s was considered a close comp which priced at the same mid-swap plus 140 bp range. The credit’s quasi-sovereign status and Brazil’s recent upgrade by Moody’s to Baa2 from Baa3 helped the development bank achieve a coupon usually reserved for corporates outside the EM universe. Such pricing may encourage other EM borrowers to follow suit. “If the low interest rate environment locally continues, this should be more and more an available market for high quality EM issuers,” another Swiss investor says. The Baa2/BBB bank last issued in the Swiss franc market in 2007 when it raised CHF150m through Credit Suisse. BNP Paribas and Credit Suisse acted as leads on this issue.