The IDB has re-elected as president Luis Alberto Moreno for a second 5-year term. Moreno, a former minister and Colombian ambassador to the US, received votes from IDB member countries representing a majority of total voting power, as well as an absolute majority of governors of the 28 regional members, says the IDB.
Category: Structured Finance
Posted inDaily Brief
Fovissste Starts RMBS Sale
Mexico’s Fovissste has kicked off a Dutch auction for its second RMBS sale of the year, which is expected to price at 5.05%-5.15% fixed real rate. The government-owned lender plans to raise MXP6.0bn using a structure similar to a sale in March that raised MXP4.5bn. Final terms are due today. The UDI-denominated 2039 bonds have an average life of around 5 years and are rated AAA on a national scale by all 4 agencies locally. Proceeds will go to making new loans. Banorte, Ixe and Bank of America Merrill Lynch are managing the sale, with Goldman Sachs as structuring agent. In March, Fovissste sold MXP4.5bn in 2039 bonds at a fixed 5.25%, or Udibonos plus 294bp.
Posted inDaily Brief
Chubut Delays ABS to Mid-July
Argentina’s Chubut province has delayed until July 12 a $150m 2020 bond issue, according to a banker on it. He adds that the bookbuilding process is still under way and that local and international investors are showing strong interest. The 7.75% coupon bond carries yield talk in a 9.00%-9.50% range, implying a large discount. Terms on the deal have not changed, says the banker. The oil and gas royalty securitization is set 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.
Posted inMagazine
CAF Turns 40
In its fortieth year, CAF continues to draw interest from new members and innovate in capital markets. Its strength lies in increasing diversification.
Posted inDaily Brief
Braskem Wraps Chemical V
Braskem has closed its latest ABS in the “Chemical” series, the BRL294m Chemical V, according to regulatory documents. The 36-month transaction using the FIDC structure features a BRL272.4m senior Aa1 rated tranche paying the DI rate plus 1.25%, and a BRL21.6m Ba1 rated subordinated piece paying DI plus 5.80%. The securities are backed by supplier receivables for already delivered goods and services. Banco do Brasil and Bradesco managed the sale. Last year’s 18-month Chemical IV raised BRL250m paying DI plus 1.40%.
Posted inDaily Brief
Fovissste Targets Next Week for RMBS
Mexico’s Fovissste has rescheduled for July 6 its second RMBS sale of the year, according to a banker managing the sale, which was initially set for this week. The government-owned lender plans to raise MXP6.0bn using a structure similar to its sale in March of MXP4.5bn. The UDI-denominated 2039 bonds will pay fixed rate, and are ranked AAA on a national scale. Proceeds will go to making new loans. Banorte, Ixe and Bank of America Merrill Lynch are managing the sale, rated AAA on a national scale. Goldman Sachs joins the trio as structuring agent. In March, Fovissste sold MXP4.5bn in 2039 bonds at a fixed 5.25%, or Udibonos plus 294bp.
Posted inDaily Brief
IDB to Visit Japan with BRL
The IDB is preparing a BRL-denominated bond issuance in the Japanese “uridashi” retail market, it says. The 4-year bonds have an indicative coupon of 8.1%, plus or minus 75bp, according to an IDB spokeswoman, and will be offered to Japanese investors July 6-July 12. She declines to indicate the amount the bank plans to sell, as this will be defined closer to pricing. “The Brazilian real is a currency that is currently much in demand by the Japanese investor base,” Soren Elbech, IDB Treasurer tells Latin Finance. Proceeds from the bonds, which are payable in USD, are marked for poverty reduction goals that support economic and social developments in LatAm and the Caribbean. The so-called Poverty Reduction bonds are the first “theme bond” issuance from the IDB, a concept used to encourage investors by reminding them of use of proceeds. “The investor base in Japan is accustomed to buying themes, and the IDB is highlighting that we make an effort to fund projects that have fighting poverty as a goal,” Elbech says. Daiwa is managing the sale. CAF sold $74m in 3.11% 2014 bonds yielding 3.12% in Japan in May. The issuer called the trade LatAm’s first ever retail-only placement in Japan. Japanese banks have been pitching both retail and institutional issuance in Japan to LatAm clients. In addition to CAF, Mexico and Colombia tapped Japanese investors last year.
Posted inDaily Brief
Chubut Targets Next Week With 9 Handle
Argentina’s Chubut province is planning to price a $150m 2020 bond June 30. The 7.75% bond carries yield talk in a 9.00%-9.50% range, implying a large discount, according to bankers on the deal. The oil and gas royalty securitization is set 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.
Posted inDaily Brief
Fovissste Preps RMBS
Mexico’s Fovissste is targeting June 28 for its second RMBS sale of the year, according to regulatory filings. The government-owned lender plans to raise MXP6bn using a structure similar to its sale in March of MXP4.5bn. The UDI-denominated 2039 bonds will pay fixed rate, and are ranked AAA on a national scale. Proceeds from the deal will go to making new loans. Banorte, Ixe and Bank of America Merrill Lynch are managing the sale, rated AAA on a national scale. Goldman Sachs joins the trio as structuring agent. In March, Fovissste sold MXP4.5bn in 2039 bonds, at a fixed 5.25%, or Udibonos plus 294bp.
Posted inDaily Brief
IFC Brings DPR Model to Microfinance
The IFC is planning to buy a $30m remittance securitization from El Salvadorian cooperative Fedecredito, using the diversified payment rights (DPR) structure to benefit a microlender. “Fedecredito is the first time a financial intermediary just focused on the bottom of the pyramid has taken advantage of a fundraising product used by larger institutions,” Xavier Jordan, principal investment officer at IFC, tells LatinFinance. Fedecredito is a co-op owned by 55 credit unions and workers’ banks in El Salvador that raises funds and provides services to members. It has previously funded itself through banks, and the Banco Multilateral de Inversiones and other multilaterals, Jordan says. The IFC will purchase the 7-year deal, which pays a spread to Libor that Jordan declines to disclose. Remittance securitizations using DPR have been used before in the region, but by large retail banks, not microfinance institutions. Fedecredito processes about $200m in remittances per year, or 5% of El Salvador’s market, says Jordan. According to JPMorgan, El Salvador’s remittances rose 6.1% to $327m in May, taking the tally for the first 5 months of the year to $1.48bn, 2.6% higher than in the same period of 2009. It notes that the central bank is forecasting remittances to increase 4.6% year-on-year to $3.6bn this year. Jordan says the IFC is considering replicating the structure, as there are other intermediaries in Central America similar to Fedecredito. A structure under which the IFC invests along with a tranche of other investors is also possible.