BV Financeira, a financing unit of Grupo Votorantim, has raised BRL2bn using the FIDC ABS structure. BV Financeira FIDC IV is backed by a pool of vehicle loans originated by BV Financeira and priced at par with a coupon at 110% of the DI benchmark, which stood at 10.63% yesterday, with a tenor of 3 years. Banco Votorantim managed the transaction, rated Aa1 on a national scale.
Category: Structured Finance
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Titularizadora Colombiana Issues RMBS
Colombian mortgage securitizer Titularizadora Colombiana has issued COP360bn ($201m) in residential mortgage backed securities due in 2020. The AAA rated notes priced at par to yield 2.20%. Demand was 3.5x the amount offered, the company says in a statement. About 43% of the notes are backed by mortgage loans originated by Bancolombia, 26% by BCSC and 31% by Davivienda. The company handled the issue itself.
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Venezuela, Argentina Get CAF Financing
Venezuela is getting 2 loans worth a total $700m from CAF, one for $600m to finance the Tocoma hydroelectric plant and the other, for $104m, to improve mass transit. CAF also approved a $500m loan for Argentina to be invested in an electric power line project. Terms were not released.
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Ixe Raises Hybrid Note
Mexico’s Ixe has added to the subordinated portion of its capital structure, selling $120m in junior subordinated notes, according to a source with knowledge of the matter. The bank priced the B+ 2020 bonds at par with a 9.25% coupon, according to the source. Goldman Sachs managed the sale. The bank’s only previous dollar bond, according to Dealogic, was a $120m 9.75% perpetual bond in 2007, also managed by Goldman. Ixe and larger Mexican bank Banorte were the subject of rumors last week regarding a merger, or sale to Banorte.
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Micro Lending Rises 13%
A survey by the IDB’s Multilateral Investment Fund shows that microfinance lending in LatAm and the Caribbean rose 13% in 2009, lower than the 18% increase seen in 2008. Lending jumped to $12.3bn in 2009 after reaching $10.9bn in 2008 and $9.2bn in 2007. In terms of loan portfolio, Peru tops the ranking with $3.2bn of microloans. Ecuador is second, with a portfolio of $1.7bn, followed by Colombia, which has a total of $1.4bn in microloans. There are more than 700 microfinance institutions in the region, according to the IDB.
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Santander Chile Goes Higher Grade
Fitch has upgraded Santander Chile to AA minus from A+. The outlook is stable. The ratings reflect the potential support from the Spain-based parent, the local bank’s leading market share and its strong profitability, healthy asset quality and good capital adequacy. Fitch says loan loss provisions fell to 1.67% of total loans at August 30 from 2.35% as of December 31 2009. Santander Chile has a market share of 20.3% in total loans at June 30.
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Ixe Preps Hybrid Bond
Mexico’s Ixe is preparing to issue $120m in 10-year junior subordinated bonds, according to Fitch, which assigns a B+ rating. Goldman Sachs is heard managing the new bond sale, of which the timing is unclear. The bank’s only previous dollar bond, according to Dealogic, was a $120m 9.75% perpetual bond in 2007, managed by Goldman. “Ixe has adequately faced the tough recent operating environment by maintaining good asset quality, sound capital levels and ample liquidity despite continued growth in overall business volume,” Fitch says, noting also relatively limited loss absorption capacity, high borrower and risk concentrations and challenges associated to rapid loan growth and business diversification. Ixe and larger Mexican bank Banorte have been the subject of rumors this week regarding a merger or sale to Banorte.
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CAF Deploys Loans to Panama, Argentina, Brazil
Multilateral bank CAF says it has approved loans for Brazilian electric company Eletrobras, Argentina’s railway system and Panama’s capital. Eletrobras will obtain a total of $500m in the form of an A/B loan. Of that amount, CAF will provide $125m, while the remaining $375m will be a syndicated loan from BBVA, Santander and HSBC. Argentina, meanwhile will get $326m, all from CAF, to improve railroad connections between the northern part of the country and the ports. Lastly, Panama’s capital city will get $120m from CAF to improve the sewage system. Terms for the loans are not disclosed.
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Neuquen Looks for Bond
Argentina’s Neuquen province is out with an RFP for a new bond, according to DCM bankers. The would-be issuer is expected to seek about $200m, perhaps using a similar ABS structure to the Chubut province. Pitches have gone out to a very wide group of banks, one of which says they are due this week. Chubut raised $150m in 2020 bonds in July at a 9.75% yield, through a securitization of oil and gas royalties. Neuquen’s last bond was a $125m 7-year oil royalty ABS in 2007, according to Dealogic.
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Jamaica Snags IDB Loan
The IDB says it is providing the Jamaican government’s Education Transformation Process with a $60m loan program and expects to provide an additional $30m in 2012. Proceeds will be used to improve education on the island. Terms were not disclosed.