Mexican mortgage lender Fovissste is preparing a MXP5bn-equivalent domestic RMBS issuance. The 2039 fixed-rate UDI-denominated offer will be the issuer’s third and is expected December 9, according to regulatory documents. Banorte, Ixe and BofA-Merrill Lynch are managing the deal, rated AAA on a national scale, with Goldman Sachs as structuring agent. In September, Fovissste placed MXP4bn-equivalent in 2031 RBMS at 5.39%, or Udibonos plus 272bp, through the same leads.
Category: Structured Finance
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CAF Advances Vene Tap
CAF has been approved by Venezuelan regulators for a local bond of up to VEB1bn ($465m), according to the country’s official gazette. There are no specific plans for a local market issue, according to a CAF official. Despite addressing most of its 2009 financing needs with a $1bn 8.125% of 2019 dollar bond late May, the multilateral seeks to support the region’s domestic markets by issuing in local currency. CAF sold PES144m ($50m) in 6.5% of 2014 bonds in Peru’s local market in October and is working on a bond to sell in Uruguay.
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Nicaragua Gets IDB Loan for SMEs
The IDB has approved a $10m loan for Nicaragua so the country can assist small and medium companies increase exports and attract foreign investment. Half the loan will be for a 25-year term, with a 5.5-year grace period and a fixed rate. The other $5 million will have a 40-year term and grace period and an interest rate of 0.25%. The government of Nicaragua will provide $437,000 in local counterpart funds.
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IDB Extends Loan to Curitiba
The IDB has approved a $50m loan to the Brazilian city of Curitiba so it may improve conditions in poor neighborhood and improve the public transit system, the bank says. The loan has an amortization period of 25 years, a 5-year grace period and a disbursement period of 5 years.
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Monsanto Sprouts Brazil FIDC
Agricultural company Monsanto is preparing to raise BRL180m through a structured finance transaction using Brazil’s FIDC structure. The US-based global producer is marketing a 10-year FIDC paying interest at the DI rate plus a spread to be determined through the bookbuilding process, set to begin December 16. The assets backing the deal are trade receivables originated by the Monsanto do Brasil unit through the sale of seeds and chemicals to Brazilian agribusiness clients. A roadshow launched Tuesday and will wrap up Friday. Santander is coordinating the transaction.
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Cabei Closes with Asian Banks
CentAm multilateral lender Cabei has raised a $75m 2-year syndicated loan, largely with Asian borrowers. The Standard Chartered-led deal includes 6 Taiwanese banks plus Mizuho and BAC Florida, say bankers on it, who decline to name the Asian lenders. The facility, which includes a put after year 1, pays Libor plus 125bp per year. An up-front fee of 37.5bp was paid upon funding, and lenders who agree to the second year will receive an additional 37.5bp. Cabei launched the $50m deal last month and was targeting up to $100m depending on demand.
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Brazil’s SMEs get IDB Support
The IDB has approved a first loan of $1bn out of a $3bn credit line for Brazil to help boost lending to micro, small and medium enterprises in the country. The credit line will include matching funds from BNDES, the IDB says. The $1bn loan, first in a series of three under the credit line, is for a 20-year term, including a four-year grace period, at a Libor-based interest rate.
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IDB Deploys Loans to Peru, Bolivia
The IDB has approved a $50.0m loan to Peru to help finance reforms in several of the country’s anti-poverty programs. The financing package, the first in a series of three program policy-based loans, is for a 20-year term with a 5-year grace period and a variable Libor-based interest rate. The bank has also approved a $25.0m credit line to Bolivia to finance improvements in traffic circulation in two segments of the country’s national road network. The financing consists of a $17.5m loan for a 30-year term and a 6-year grace period, and a $7.5m credit for a 40-year term, with a 1-year grace period, and 0.25% interest.
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Infonavit Brings RMBS
Mexican mortgage lender Infonavit has sold MXP2.53bn in UDI-denominated RMBS, it says. The 22-year notes with a 4.7-year average life pay a fixed interest rate of 5.4%, 10bp lower than the previous issuance in late September. The deal rated AAA on a national scale saw demand from banks, individuals, pension funds, insurance companies and brokerages, Infoanvit says. Banamex and HSBC managed the sale. The issuer has now sold MXP11.33bn this year, within its MXP10bn-MXP15bn target. Infonavit sold MXP2.68bn in 2031 RMBS at 5.5% in September, in a sale also managed by Banamex and HSBC.
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CAF Readies $1bn World Cup Fund
CAF is teeing up a $1bn fund to help Brazilian subnational entities, such as states and municipalities, finance projects linked to the 2014 World Cup, to be held in the country. Moira Paz-Estenssoro, CAF’s Brazil representative, tells LatinFinance the funds will be directed at improving the touristic capacity of Brazil’s hosting cities, including security and critical urban developments, as well as supporting and financing PPPs related to the Cup. Once the subnational governments can obtain a guarantee for their respective projects from the federal government, CAF will provide financing from the fund that may carry tenors of up to 18 years with grace periods of 4 years, says Paz-Estenssoro, speaking at a Project Finance – Euromoney conference Thursday in Sao Paulo.