IDB president Luis Alberto Moreno and Jamaican finance minister Audley Shaw have signed a $200m loan for a fiscal consolidation program, bringing total approvals this year to more than $400m. The loan is for a 20-year term, with a 5-year grace period, at a Libor-based variable interest rate. It will be disbursed in a single tranche.
Category: Structured Finance
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Infonavit Plans RMBS
Mexico’s Infonavit is looking to issue its third domestic RMBS deal of the year. The dual tranche 2038 bonds, which are rated AAA on a national scale, are expected to be issued in the last week of August or the first week of September, says a banker on it. Banamex and HSBC are joint leads and the banker says size is to be determined. Both tranches will be denominated in the UDI inflation-linked unit. The average life of the first tranche is 2.4 years and the average life of the second is 6.3 years. The government-owned mortgage lender raised MXP4.2bn in June through a similar sale via the same banks, paying 3.90% and 5.05%, also for a 2038 maturity.
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CAF Approves $672m Argentina Loans
CAF has signed 5 loan agreements with Argentina for $292m and has announced the approval of a further $380m of loans for development projects. “We are supporting projects which the Argentinean government has established as priorities in the areas of social development, technology, education, infrastructure, energy and regional integration,” says Enrique Garcia, executive president, CAF. A loan for $100m will go towards infrastructure projects to improve regional development, and a $35m loan will be for 28 infrastructure projects in 23 universities. To improve the regional expansion of electricity provisions, a loan for $84m will be given. A contract was also signed for $37.7m to finance studies relating to the energy sector. A $36m technology loan was also granted, for financing a satellite project. The approved loans include $140m to develop roads in the northern provinces of Argentina, and $240m to support the government’s plans to extend the life of a nuclear power plant.
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Brazilian Retailer Plans ABS
Globex Utilidades is preparing a BRL675m FIDC transaction in Brazil’s local market. The operator of the Ponto Frio chain plans to securitize credit receivables from financing to customers. The transaction will be divided into a BRL600m senior tranche and a BRL75m subordinated tranche, with the maturities and interest rates still to be determined. Itau is managing the transaction. If completed at this size, it would be the largest FIDC of the year, according to CVM records. The Brazilian market has closed BRL2.22bn in structured deals using the FIDC format through the end of July, up from BRL2.16bn in the corresponding period of 2009. Globex, which specializes in home appliances, electronic goods and furniture, was acquired last year by fellow retailer CBD, operator of Pao de Acucar supermarkets.
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El Salvador Gets IDB Loan
The IDB has approved a $60m loan to El Salvador to finance an integrated public health service network for the country. The loan is for 25 years, with a 5-year grace and disbursement periods. The interest rate is based on Libor. The government of El Salvador will provide an additional $22.7m in local counterpart funds.
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Chubut Clinches Oil ABS
Argentina’s Chubut province has priced a $150m 2020 bond backed by oil and gas royalties. A $104m global piece priced at 91.87 with a 7.75% coupon to yield 9.75%, and a $46m domestic tranche came at 93.00 with the same 7.75% coupon to yield 9.46%. Demand was heard at about $160m. The province had been pitching since June the bond primarily backed by hydrocarbon royalties to be paid by Pan American Energy, which has been awarded the production concession for certain areas in the province. It was heard initially aiming for 9.0%-9.5% yield. The transaction has a 5.5-year average life. US-based BCP Securities managed the international placement, rated Ba3, with Banco de Valores and Banco de Chubut on the domestic portion, rated Aa1 on a national scale. Other sub-sovereign Argentine credits waiting in the wings include Cordoba province. While the recent federal debt exchange is seen helping these issuers lower yields, many had previously already been able to access international markets, including Cordoba and the City of Buenos Aires.
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Correction: Cabei Expected at 130bp over Udis
A July 20 Daily Brief entitled “Cabei Expected at 130bp over Udis” incorrectly attributes timing of the deal to issuer. Investors expect it to happen July 28.
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Cabei Expected at 130bp over Udis
CentAm development bank Cabei says it will issue up to the equivalent of MXN1bn 10-year bonds denominated in Udis July 28. Price talk is Udibonos plus 130bp, according to investors looking at the AAA sale. Interest from investors after meetings 2 weeks ago in Mexico City and a favorable swap rate into dollars make it a good time to revisit the market, says treasurer Jose Felix Magana. The bank wants to issue to grow its lending portfolio, in particular for infrastructure projects. Cabei last came to the Mexican domestic market in 2008. It has 9 outstanding bonds in the market, worth a total $400m, with maturities of 2-12 years. Cabei has done 50%-60% of its funding for 2010, having pre-funded $500m in 2009.
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Chubut Closes in on ABS
Argentina’s Chubut province is closing in on a $150m 2020 bond, with all of the orders having come in and pricing for both the international and domestic tranches expected to be finalized with in the next 4 days, according to a banker managing the domestic portion. He declines to state an indication of the price, saying only that the deal has gone “very well” and is oversubscribed. Previously, yield talk for the 7.75% coupon bond had been in the 9.00%-9.50% range. The oil and gas royalty securitization is expected to be allocated $50m to domestic markets and $100m internationally, the provincial government has said. The notes will be backed primarily by hydrocarbon royalties to be paid by Pan American Energy, which has been awarded the production concession for certain areas in the province. The deal is rated Ba3 globally and Aa1 domestically. US-based BCP Securities is managing the international placement, with Banco de Valores and Banco de Chubut on the domestic portion.
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Cabei Eyes Mexican Market
Central American development bank Cabei is looking to issue up to MXN1bn of 10-year bonds in the Mexican domestic market towards the end of the July, after meeting investors in Mexico City last week. “This is a market that is picking up pace and where we want to maintain a strategic presence,” treasurer Jose Felix Magana tells LatinFinance. “It is a market we are comfortable issuing in, there is investor appetite and there is a favorable swap rate into dollars so it is a potentially a good time to revisit it,” he adds. The bank wants to issue to grow its lending portfolio, in particular for infrastructure projects. Cabei last came to the Mexican domestic market in 2008. It has 9 outstanding bonds in the market, worth a total $400m, with maturities of 2-12 years. Cabei has done 50-60% of its funding for the year, having pre-funded $500m in 2009.