Mortgage securitizer Titularizadora Colombiana has sold COP117bn in RMBS on the domestic market. The 2019 bond pays 5.70%, according to Titularizadora, and was 2.4x subscribed. COP129bn in 2019 senior and 2024 subordinated tranches is set to be sold today. The deal rated AAA on a national scale is secured by mortgages from Bancolombia and Davivienda. Titularizadora coordinated the issue.
Category: Structured Finance
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Fovissste Places RMBS
Mexican mortgage lender Fovissste has sold MXP5bn equivalent in domestic RMBS. The 2039 UDI-denominated bonds pay a fixed rate of 5.4%. Banorte, Ixe and BofA-Merrill Lynch managed the deal, rated AAA on a national scale, with Goldman Sachs as structuring agent. It is Fovissste’s third transaction this year, and also in its history, as the lender has stepped in to keep the local RMBS market alive this year along with fellow government-backed lender Infonavit. In September, Fovissste placed MXP4bn-equivalent in 2031 RBMS at 5.39%, through the same leads.
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Hito Brings RMBS
Mexican mortgage lender Hipotecaria Total has sold MXP2.52bn-equivalent in UDI-denominated 2025 RMBS, backed by credits from government lender Infonavit. The bonds have an average life of 5.29 years and priced at 99.822 with a 5.400% coupon to yield 5.430%. The issuance is backed by 16,208 Infonavit credits, and follows a similar MXP3bn transaction done in November with credits from government lender Fovissste. Intercam managed the sale, rated AAA on a national scale. Hito has issued more than MXP7bn in RMBS this year.
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Peru, DomRep Get CAF Credit
CAF says it has agreed to offer Peru a $400m credit line to help it cover potential gaps in financing from the international markets and allow the sovereign to manage its public debt strategy. The multilateral also approved an $80m loan for the Dominican Republic to help the country develop its urban areas in 61 communities. Terms are not being disclosed, says a CAF spokeswoman.
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IDB Signs Barbados and Nicaragua Facilities
The IDB has approved loans for Barbados and Nicaragua. Barbados will get 2 facilities, one for $50m and another for $20m. The larger loan will help the Barbados Water Authority to modernize its infrastructure and improve efficiency. It has a 25-year term, a 5-year grace period and is priced basis Libor. The $20m loan will help raise agricultural health and food safety standards to international levels, it will have a 25-year term, a 4-year grace period and a variable interest rate based on Libor. Nicaragua, meanwhile, is getting $40.5m to improve tax collection and make social spending more efficient. The funding consists of a $20.25m loan from for a 30-year term, with a 5.5-year grace period, and a $20.25m loan for a 40-year term, a 40-year grace period, paying 0.25%.
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Brazil Municipalities Get IDB Support
The IDB has approved a $150m loan to finance the second phase of a multi-phase federal government program that seeks to help the country’s 5,564 municipalities better integrate their tax systems and modernize their administrative, tax, financial, and revenue management. The USD-denominated loan matures in 20 years and has 6-year grace and disbursement periods. The interest rate is based on Libor.
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Costa Rica Airport Gets IDB Loan
The IDB has approved a $45m loan to help finance the expansion of the Juan Santamaria airport in Costa Rica’s capital city of San Jose. Paulo Monteiro, finance manager at Brazil construction company Andrade Gutierrez, part of the consortium in charge of the expansion, says that the loan has a 15-year term and 1-year’s grace. Monteiro declines to state the price. He also tells LatinFinance that the consortium, to which Canada’s Airport Development Corporation and Houston Airport Services also belong, expects to get another loan for $55m from OPIC in early January. The terms for that loan will be the same as IDB’s, he says.
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Banorte Sub Debt on Negative Watch
Moody’s has placed under review for possible downgrade the Baa2 foreign currency debt rating of Banorte’s deeply subordinated non-cumulative junior subordinated notes eligible for Tier-1 capital treatment, following a change to its rating methodology for this type of instruments. Other ratings assigned to the bank are not subject to the review. “The review on Banorte’s subordinated notes follows Moody’s initiative to review bank hybrids and subordinated debt on a global basis,” says the agency. Moody’s has changed the way it rates these securities to take into account for the fact that some recent government interventions in troubled banks have not helped, and have even been to the detriment of, holders of such securities. For example, in some cases, support packages have been contingent upon a bank’s suspension of coupon payments on these instruments as a means to preserve capital, it adds. Prior to the current crisis, Moody’s had incorporated into its ratings an assumption that support provided by national governments and central banks to shore up a troubled bank would, to some extent, benefit subordinated debt holders as well as senior creditors. Globally, Moody’s anticipates that 40% of the potentially affected hybrid ratings could be lowered by 1-2 notches, 50% could be lowered 3-4 notches, and the remainder could be lowered by 5 or more notches.
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Argentina Gets IDB Power Line Loan
The IDB has approved $300m in financing to Argentina for the completion of a 1,220km 500kv power line, as well as to support provincial and regional transmission and sub-transmission works that are part of the country’s Norte Grande development and integration program. The new IDB financing will complement a $580m loan approved by the bank in 2006. The latest loan is for a 25-year term, with a 5-year grace period at a variable interest rate.
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Multilaterals to Co-Finance LatAm Projects
The IDB and the European Investment Bank (EIB) have reaffirmed their commitment to co-finance private-sector energy and transport projects in LatAm and the Caribbean. The new agreement renews commitments from both institutions that were set in a previous memorandum of understanding, signed in December 2004, which expires at end of 2009. Under the previous accord, the IDB and EIB have co-financed important projects for the region, including the expansion of the Panama Canal and Nicaragua’s power sector rehabilitation program. The total amount available for loans has not been defined, says an IDB spokeswoman.