The IDB has approved a $150m loan for the Brazilian state of Ceara to support the development of new tourism destinations. The loan matures in 25 years, with an amortization and disbursement period of 5 years. The interest rate is based on the Libor and Ceara state will provide counterpart funds of $100m.
Category: Structured Finance
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Braskem Preps Chemical V
Braskem is preparing to market a new BRL294m ABS using the FIDC structure. The petrochemical producer’s transaction, to be called Chemical V, is the latest in a series of ABS using that name. It is expected to begin marketing as soon as next week, a Braskem official says. The 36-month deal will be divided into a BRL272.4m senior AAA tranche ant BRL21.6m subordinated piece. Banco do Brasil and Bradesco are managing the sale. Chemical IV raised BRL250m last year, with the senior piece paying DI plus 140bp.
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Infonavit Readies RMBS
Mexico’s Infonavit is preparing its second local RMBS sale of the year, according to regulatory documents. The government-owned mortgage lender plans to raise MXP5.62bn in 2038 bonds denominated in UDIs. The issue will be split into identical tranches with the first featuring a 2.7-year average life and amortizing before the second, which has a 7.2-year average life. Infonavit aims to price June 16, and will use proceeds to make new loans. Banamex and HSBC are managing the deal, rated AAA on a national scale. Infonavit raised MXP4.93bn in March in a similar sale through the same banks, paying interest rates of 4.11% and 5.33%.
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CAF Breaks Japanese Retail Ice
CAF has raised $74m from what it calls the first ever retail-only placement in the Japanese market by a LatAm issuer. The 2014 bond sold in the so-called Uridashi market priced at 99.98 with a 3.11% coupon to yield 3.12%. Officials at the issuer and lead bank note that there have been mixed institutional-retail offers in Japan by Latin issuers, but this is the first purely retail. The latter is a more difficult market typically dominated by AAA Japanese credits. CAF is rated A1/A+. Daiwa Securities managed the sale. CAF has been issuing in Japan for more than a decade, most recently in February 2009 with a JPY10bn ($108m) 3.4% of 2019 private placement.
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Single-Digit Growth Seen for Remittances
The IDB says remittances to LatAm and the Caribbean are showing signs of stabilizing and could register a single-digit increase this year, following a 15% drop suffered in 2009. Last year, LatAm and the Caribbean received some $58.8bn in remittances, marking the first annual decline since the IDB’s Multilateral Investment Fund started to track such flows in 2000, the bank says.
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BNDES Creates Eximbank
Brazil’s BNDES plans to place its export credit business in a new unit called Exim Brasil to centralize, simplify and increase its offerings to the country’s exporters. It will be backed by a new BRL2bn Fundo Garantidor de Comercio Exterior guarantee fund. BNDES claims a BRL13bn existing portfolio in the area of trade finance, and will have as a main focus extending services to businesses that are finding it difficult to obtain financing. The new bank will be based in Rio.
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CAF Signs Brazil Loan
CAF has approved a $100m loan for the northeastern Brazilian state of Paraiba. Proceeds will be used to improve about 1,000km of roads. The total cost of the road revamping project is $154m, of which Paraiba will contribute $54m. CAF does not provide terms on the facility.
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Bladex on Non-Deal Roadshow
Panama-based multilateral lender Bladex will meet with investors next week in the US and Europe, according to investors. The trip is scheduled from Tuesday to Friday. Credit Suisse and Bank of America Merrill Lynch are managing.
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Bolivia Bags IDB Financing
The IDB has approved $30m in financing for Bolivia to be used to improve budget management and control public expenditure. The financial package includes a $21m loan for a 30-year term with a 5.5-year grace period at a rate based on Libor, and a $9m concessional credit for a 40-year term with a 40-year grace period and 0.25% rate.
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Continental Lines up DPR
Peru’s Banco BBVA Continental is preparing a $200m diversified payment rights (DPR) securitization, according to S&P which assigns an A minus rating. The 2017 transaction is a securitization of the Peruvian Bank’s current and future DPRs in the MT100 and MT200 category. This type of securitization usually pays an interest rate basis Libor. Sumitomo Mitsui and WestLB are heard managing the sale, which is in the process of negotiation. Continental raised $250m in a similar 7-year transaction in January 2009, according to Dealogic, through the same lead mangers, who also bought the deal.