Banco Bonsucesso is preparing a BRL200m loan securitization using the FIDC structure, according to regulatory documents. The payroll lending specialist should soon begin the bookbuilding stage for the 15-year deal rated AAA on a national scale, according to an official managing the deal. The interest rate has not been set. Oliveira Trust is managing and structuring the transaction.
Category: Structured Finance
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Peru Secures Spain Grant
The Spanish Cooperation Fund for Water and Sanitation in LatAm and the Caribbean is providing a $72m grant for an IDB-backed water and sanitation project in Peru. The grant will finance mostly infrastructure and other works needed to expand and improve drinking water and sanitation networks in towns of 2,000-15,000 people, and rural localities of fewer than 2,000 inhabitants. The government of Peru will provide $18m to complete the total investment of $90m required to fund the project.
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Titularizadora Sells Local MBS
Mortgage securitization company Titularizadora Colombiana has issued COP518bn ($263.9m) in 2020 mortgage-backed securities (MBS) at a fixed 6.39%, the company says. Demand for the AAA rated securities was 3.8x the amount offered, says the issuer. The bonds are backed by 6,259 mortgage loans, of which 23.50% is originated by Davivienda, 22.50% by BSCS and 54.00% by Bancolombia.
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Interbank Upsizes Hybrid
Interbank has sold $250m in new 2070 hybrid NC10 notes, upsizing from $150m on about $1.5bn in demand. The Ba3/BB issue priced at par with an 8.500% coupon to yield the tight end of 8.625% area guidance. About 25% of the orders came from Peruvian and other LatAm investors, according to a banker on the deal. He also notes significant retail participation. The step-up junior subordinated NC10 notes are due 2070 and pay the fixed coupon for the first 10 years, before switching to a floating. Proceeds from the transaction will raise funds for the Peruvian bank’s Panama branch, according to rating agencies. The debt is transferred there after it receives an operating license. Bank of America Merrill Lynch and JPMorgan managed the sale, rated Ba3/BB. It followed a US, European and Asian roadshow. The sale was the region’s first step-up hybrid since October, when BB+/BB Peruvian bank BCP sold a $250m 2069 at 9.75%.
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Interbank Set for Hybrid
Interbank has given 8.625%-area yield guidance for its new Hybrid security, expected to price today. A roadshow was set to finish Thursday pitching the step-up junior subordinated NC10 notes due 2070, and pay a fixed coupon for the first 10 years, before switching to a floating rate. Proceeds from the transaction will raise funds for the Peruvian bank’s Panama branch, according to rating agencies, with the debt transferred there after it receives an operating license. Bank of America Merrill Lynch and JPMorgan are managing the sale, rated Ba3/BB.
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DomRep Gets CAF Loan
The CAF says it has signed off on an $80m loan for the Dominican Republic. The funds will go to urban development programs in 61 communities. A CAF spokeswoman says the loan is for 15 years and has a grace period of 3 years. She does not disclose the rate.
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Interbank Maps Roadshow
Peru’s Interbank plans to begin marketing Tuesday a $150m hybrid bond. It will start in Switzerland and Singapore, visiting London and Hong Kong before finishing Thursday in Boston and New York. The step-up junior subordinated NC10 notes due 2070 pay a fixed coupon for the first 10 years, before switching to a floating rate. Proceeds from the transaction will raise funds for Interbank’s Panama branch, according to rating agencies, with the debt transferred there after it receives an operating license. The securities will likely be recognized by Peru’s regulators as Tier 1, says Fitch, which assigns 100% equity credit. Bank of America Merrill Lynch and JPMorgan are managing the sale, rated Ba3/BB. Interbank’s last dollar issue was a $121m 2016 MT100 bond sold last year.
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Interbank Plots Hybrid
Banco Internacional del Peru (Interbank) is planning a $150m subordinated bond due 2070, according to a Moody’s report assigning a Ba3 mark. The non-cumulative fixed/floating rate step-up junior subordinated notes transaction will raise funds for Interbank’s Panama branch, Moody’s says, with the debt transferred there after it receives its operating license. JPMorgan and Bank of America Merrill Lynch, who ran a $250m hybrid transaction for compatriot BCP last year, are heard to have been tapped to manage.
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CAF Eyes Euros, Local Markets
With expected funding needs of $1bn this year, Corporacion Andina de Fomento (CAF) plans to tap the dollar, euro and local LatAm markets. “We have been issuing [in euros] for years, and would like to go back to that market,” Gabriel Felpeto, the multilateral lender’s director for financial policies and international issues, tells LatinFinance. CAF’s last public euro deal was a EUR300m 5-year in 2006, according to Dealogic. Following up 2009’s JPY10bn ($109m) 10-year Samurai bond is also a possibility. Issuance in domestic markets should also continue to be important, after making up 20% of CAF’s 2009 funding. “We’re looking at all the markets,” Felpeto says, identifying Mexico, Colombia, Peru, Uruguay, Chile and Venezuela as possibilities. CAF foresees borrowing about $1bn this year, based on the loan portfolio expanding by a 9%-10% forecast. It has already raised almost $300m through smaller private placements in euros, dollars and Uruguayan pesos. The latter includes a recent $50m 2017 paying a coupon linked to a Uruguayan stock index, sold to a handful of local pension funds. CAF will also continue its commercial paper programs in euros and dollars, and is considering boosting the size of each to $1.5bn/EUR1.5bn from $1bn/EUR1bn.
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Ecuador Gets CAF Financing
CAF says it will provide 2 loans to Ecuador. The first one, worth $255m, will go to financing road projects and a second, worth $250m, will be used to support electric power investments. CAF did not return calls seeking information about the terms of the loans.