Japanese Ex-Im bank JBIC and Brazilian development bank BNDES have signed a memorandum of understanding to fund up to $3bn in infrastructure projects, with a particular focus on the transportation industry. JBIC and BNDES last joined forces in April to raise $300m to fund projects that benefit the global preservation of the environment, fostering the reduction of greenhouse gas emissions, energy efficiency and the use of renewable energy.
Category: Structured Finance
Posted inDaily Brief
BNDES Heard Eyeing CHF250m 5-Year
Brazilian development bank BNDES is considering a CHF250m ($296m) 5-year bond after meeting Swiss accounts last week, says an investor following the process. Timing has yet to be determined; but the borrower is expected to announce more details as soon as this week if market conditions are benign enough. The credit’s quasi-sovereign status will no doubt be a plus in the Swiss franc market after Moody’s upgraded the Brazilian sovereign Monday to Baa2 from Baa3. “Investors’ response has been solid and ties in with Brazil’s [growing] economy and recent sovereign upgrade from Moody’s,” a banker involved says. BNDES last raised EUR750m in its first euro-denominated bond sale in September, pricing a 2018 at 99.298 with a 4.125% coupon, to yield 4.243% in a transaction that generated more than EUR2bn in orders. The possible CHF tap is part of BNDES’ plan to diversify its investor base, bankers say, and comes in line with former issues done in USD and EUR. This would be the second CHF issue for the Baa2/BBB rated bank following a 2007 CHF150m issuance led by Credit Suisse. On this occasion BNP Paribas and Credit Suisse took the borrower on the road.
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Bladex to Return with $150m 3-Year
Latin American supranational bank Bladex is poised to launch a $150m 3-year loan at the end of June. Mizuho is acting as lead and the proceeds are going to refinance an existing facility that pays around 200bp over Libor. The borrower is expected to achieve tighter pricing this time, shaving off at least 50bp from prior levels.
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Titularizadora Colombiana Sets Date
Titularizadora Colombiana plans to issue RMBS on June 22, according to a company official. The Colombian mortgage securitization specialist is targeting COP250bn ($141m), though it had originally planned to issue up to COP318bn of paper, adds the official. The deal consists of four tranches, a 10-year senior tranche and 15-year subordinated bond as well as mezzanine components. The bonds are backed by mortgages originated by Bancolombia and Davivienda. A group of 12 brokerages is handling the transaction. Titularizadora last came to the market in December when it issued COP94.2bn ($49.0m) in UVR-denominated RMBS, with a senior 2020 portion paying 1.45%.
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CAF Upsizes Syndicated Loan
CAF, the Andean multilateral, has upsized a 3-year syndicated loan it was seeking from Asian lenders after the deal was oversubscribed, according to a banker on the transaction. The multilateral has upsized the deal to $163m, from the $150m it had planned to borrow, to accommodate demand. The deal was priced at Libor+ 95bp. The mandated lead arranger, SMBC, took a $100m ticket and 5 others participated in the transaction, with ticket sizes ranging from $3m to over $10m. Bank of Taiwan, Megan International Commercial Bank, LAN Bank Taiwan were the banks that participated from Taiwan. The Development Bank of Japan also participated in the deal, which was the first time it has acted as a lender to a LatAm multilateral, says a banker on the deal. Proceeds will be used for general corporate purposes.
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Fovissste Local Bond Comes Tight
Mexico’s Fovissste raised MXP3.6bn ($309m) equivalent in the local markets Tuesday through a UDI-denominated RMBS that generated some MXP10bn plus in demand, says a banker on the deal. The bonds priced to yield 4.70%, or 339bp over Udibonos, tight to 4.85% area guidance, allowing it to come 5bp inside Infonavit’s RMBS issuance last week, adds the banker. Investors included pension funds, insurance companies, private banks, bank treasuries and mutual funds. “This is a government housing agency, so in a similar way to Infonavit’s issuance last week, it was very popular,” says one investor. Stronger demand for the Fovissste bond was seen as a sign that market conditions are improving for local borrowers. “The names are basically the same, so the tighter pricing is not due to a difference in the institutions as mortgage lenders,” adds the investor. Proceeds from the 2040 bonds will be used to originate mortgages. Bank of America, Banorte, and BBVA Bancomer were bookrunners on the deal, the government lender’s first of 2011. The bonds are rated AAA on a national scale.
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Itau Prepares First Credit FIDC
Itau is preparing a BRL400m ($251m) FIDC for Brazil’s domestic market, marking the first time the Brazilian bank has created such a product from its own assets. Backed by the bank’s own loans and other credit products made to medium and large businesses, the deal has a 3-year tenor and is expected to pay the DI rate plus 2.1%. Fitch rates the deal A on a national scale. Itau, which is also managing the sale, is expected to finalize the trade and begin funding this month.
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Fovissste Sets Guidance for MXP Issuance
Mexico’s Fovissste plans to issue up to MXP3.6bn ($309m) equivalent in UDI-denominated RMBS today, with guidance in the 4.85% area, according to a banker with knowledge of the transaction. Proceeds from the 2040 bonds will be used to originate mortgages. Banorte, BBVA, Bancomer and Bank of America Merrill Lynch are bookrunners on the deal, which would be the government lender’s first of 2011. The bonds are rated AAA on a national scale.
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Industrial Lender Readies FIDC
Brazil’s TrendBank, a lender and intermediary specializing in financial services for industrial companies, is preparing a BRL200m ($126m) domestic securitization using the FIDC structure. The borrower has yet to decide on tenor but it is expected to pay interest at 120% of the DI. The fund created will consist of loans made to industrial, commercial and agribusiness companies. Banco Cruzeiro do Sul is managing and structuring the transaction, rated AA minus on a national scale by Austin Ratings. The transaction is scheduled to open to investors Thursday and could close as late as December, according to the prospectus.
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Fovissste Sets RMBS Date
Mexico’s Fovissste has set June 7 for the issue of up to MXP3.6bn ($309m) equivalent in UDI-denominated RMBS, according to a banker on the deal. Proceeds from the 2040 bonds will be used to originate mortgages. Bancomer, Bank of America Merrill Lynch, Banorte and BBVA are bookrunners on the deal, which would be the government lender’s first of the year. The bonds are rated AAA on a national scale.