The IDB is disbursing a $301m loan to Mexico as part of a $1.2bn credit line. The bank says the funds will help Mexico support small and medium enterprises in the oil sector. The loan is for a 25-year term, including a 5-year grace period, and carries a variable interest rate based on Libor.
Category: Structured Finance
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Ceara Bags IDB Funds
The IDB has approved a $45m loan to help improve living conditions and social integration of children, adolescents, and young people at social risk and their families in the Brazilian state of Ceara. The funds will also contribute to advance municipal and state management capacity, particularly in the social field. The loan is for a 25-year term, with a 5-year grace period, and carries a variable Libor-based interest rate. The total cost of the project is $64.3m, with $19.3m to be provided in local counterpart funds. Separately, the IFC has approved a $25m 5-year loan to Brazilian bank Bicbanco to help it extend credit to small and medium-sized health and education providers. The financing is an interbank CD with a 2-year grace period, the IFC says.
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Bladex Closing Trade Finance Line
Bladex is heard closing a $113m 2-year loan through Mizuho paying 175bp all in. The deal was syndicated to a group of 10 banks in China and Taiwan, according to a banker on it. Proceeds are for trade finance. The deal is a follow up to a deal closed in September for the Panama-based multilateral lender. Bladex raised $100m via a 2-year loan co-led by China Development Dank and Mizuho at a margin less than 200bp.
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DomRep Gets IDB Storm Loan
The IDB has approved a $100m loan for the Dominican Republic so the country can cover the costs that arise during earthquakes and hurricanes. The IDB says the facility is the first contingent loan for natural disasters that it has approved for LatAm or the Caribbean. In addition to this facility, the IDB has worked with the Dominican government to help it establish a national reserve fund for emergencies and to develop a catastrophic insurance facility. The loan is for a 20-year term, including a 5-year grace period and a Libor-based interest rate. Separately, the IMF this week approved a $1.7bn equivalent 28-month stand-by arrangement for the Dominican Republic to support its strategy to cope with the adverse effects of the global economic environment.
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Infonavit Holds MXP RMBS
Mexico’s Infonavit is targeting the end of next week for its sale of MXP4.3bn in RMBS, according to a banker managing the transaction. A deal had been expected this week, the prospectus states. The 2031 UDI-denominated issue is rated AAA on a national scale is similar in structure to the previous 4 it has sold in 2009 – some of the only RMBS issuance able to get done this year in Mexico. Banamex and HSBC are managing the sale. Infonavit has sold MXP8.7bn of its MXP10.0bn target for 2009. Issuance in Mexico’s local debt markets has slowed in recent weeks, local bankers note, due to continued issuer reluctance following institutional investors’ demands in August for tighter covenants and different procedures in the issuance process. Those hopeful to issue in coming weeks include Telmex International, with a MXP5bn follow-up to a September bond, and Holcim’s Cementos Apasco unit, with a MXP1bn ABS.
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CAF Lends to Argentine SMEs
CAF has approved a $50m revolving credit line for state owned Banco de la Nacion so the latter can extend credit to small and medium-sized businesses. The facility is payable in 5 years and carries an interest rate pegged to Libor. The multilateral also announced a medium-term $30m loan for oil company Pan American Energy, but has not revealed more information about terms.
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Brazil, Nicaragua Secure IDB Support
The Brazilian city of Fortaleza is getting a $59.4m IDB loan to finance integrated urban-upgrading for neighborhoods located alongside the main rivers. The loan matures in 25 years and has a grace and disbursement period of 5 years. The loan is denominated in USD and its interest rate is based on Libor. Local counterpart funds for the project total $39.60m. Nicaragua, meanwhile, is getting a $43.50m IDB credit line to improve its road system. The credit line consists of a $21.75m supplemental loan from the bank’s ordinary capital for a 30-year term, including a 5.5-year grace period, at a Libor-based interest rate, and a $21.75m credit from the concessional fund for special operations for a 40-year term, 40 years of grace, and 0.25% interest.
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BCP Prices in Wilting DCM
Banco de Credito del Peru has sold a $250m subordinated bond, upsizing from a planned $225m on the back of about $1.2bn in demand. The 2069 NC10 priced at par to yield 9.75%. The 60-year junior subordinated security will pay a 9.75% coupon through the first 10 years, and switch to a Libor-based interest rate thereafter. “This is Peru’s top bank, and there’s also a scarcity factor,” says a participating EM investor explaining the demand. Bank of America-Merrill Lynch and JPMorgan managed the sale, rated BB/BB+. The issue is the first with the fixed-to-Libor hybrid structure since Guatemala’s Banco Industrial sold a $30m 9.00% 60-year NC10 bond in April 2008. The deal caps off a challenging week for new issues, which appears set to be followed by a brief break based a lack of announced deals last week. “It was volatile this week, but there were still good outcomes for most issuers,” says a New York DCM banker running transactions this week, noting that pricing might have been a bit better two weeks ago, but things are still rosier than, say, four months ago. “There is a bit of a pause, but I don’t see things shutting down,” says another, noting there is still cash to be spent, although investors will be taking a more cautious approach to new deals.
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IDB Lends to Mexico Labor Market
The IDB has approved a $150m loan to Mexico to support job creation. The loan was requested by Mexico in response to the impact of the international financial crisis and the swine flu health crisis on the country’s economy. The loan has a 25-year term with a 3-year grace period, and its interest rate will be based on Libor. Funds will be disbursed over 3 years.
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Peru Refinery Gets Loan
Peru’s Refineria La Pampilla, majority owned by Spain’s Reposl YPF has signed a $100m 3-year loan with Bladex. Officials at YPF decline to disclose the interest rate until results are reported at the end of the month. The funds will be used to restructure commercial paper.