Category: Structured Finance

CentAm multilateral Cabei is looking to raise up to $100m in a syndicated loan, say bankers close to the deal. The institution is initially targeting a $50m raise, but may look to upsize if it detects sufficient demand. The loan is being offered at Libor plus 125bp for a 2-year tenor, which has the option to be extended by an additional year for an additional fee. There is an up-front fee of 37.5bp. At the end of 2 years, participants can sign on for an additional year and receive another 37.5bp, in addition to the spread. Tickets of around $15m are being shopped to lenders, according to a banker involved. Standard Chartered is leading.

The IDB has approved a $500m 5-year loan for the Dominican Republic to support social programs and streamline energy subsidies and improve financial management of power companies. The loan will be disbursed in 18 months. It has a grace period of 3 years and its interest rate is based on Libor.

The IDB and the Spanish Cooperation Fund for Water and Sanitation in LatAm and the Caribbean have teamed up to offer $100m in support to Bolivia. The Spanish fund will contribute $80m in grants and the IDB $20m in ordinary and concessional loans to extend water and sanitation services to some 500,000 people in El Alto, La Paz, Cochabamba, Santa Cruz and Tarija. The IDB portion consists of 2 loans, one for $14m and another for $6m. The $14m part has a 30-year amortization period, a 6-year grace period, a 6-year disbursement period and an interest rate based on Libor. The $6m part has a 40-year amortization period, a 40-year grace period, a 6-year disbursement period and a 0.25% interest rate.

The IDB has approved a $1bn line of credit for Ecuador to finance road infrastructure improvements. Of this credit line, the bank has authorized a first loan for $350m. The first loan of the line of credit is for 25 years, with a 6-year grace period and a Libor-based variable interest rate. Ecuadorian counterpart resources will total $16.5m for this initial phase of the program. Separately, the IDB approved a $200m loan for Venezuela’s Corporacion Electrica Nacional (Corpoelec) to improve electricity services. The loan is for a 20-year term with a 5-year grace period and carries a Libor-based variable interest rate. The Venezuelan government will provide an additional $50m in local counterpart funds.

The IDB has approved a $600m loan for Brazil’s Sabesp to expand collection and treatment of wastewater that is drained into Tiete river in Sao Paulo. The loan, which will mature in 25 years, is denominated in USD and its interest rate is based on Libor. The loan has a six-year grace and disbursement periods.

The consortium that has taken over the renovation project for Costa Rica’s Juan Santamaria airport in San Jose expects to get $100m in financing in November from the IDB and OPIC, says Paulo Monteiro, finance manager at Brazil construction company Andrade Gutierrez Concessoes (AGC). The consortium in charge of renovations is made up of AGC, Canada’s Airport Development Corporation (ADC) and Houston Airport Services (HAS), which runs 3 airports in Texas. Monteiro tells LatinFinance that of the $100m, the IDB will provide $45m and OPIC $55m. He expects the loans to have a 15-year term with a 2-year grace period. To take over the renovation, the consortium had to pay down the IFC loan, hedge contracts, and fines imposed on the leaders of the consortium previously in charge of this project, Bechtel and Chiangi. To do so, it had to get a $43m loan, Monteiro explains. Of that $43m, AGC was able to get half from Portugal’s Banco Espirito Santo, while ADC and HAS got the rest from Canada’s TD Bank. The new $100m loan will go to pay down the loans and to cover capex to finish the renovation. Monteiro says he hopes the consortium will be able to work on the next phase of the revamp, expected to start in 2014 or 2015 at a cost of about $140m.

The IDB has approved a $28.6m loan to Brazil to help modernize the country’s federal government improve the quality and management of public expenditure. The Brazilian government will provide $20.4m in counterpart funds to help finance the program. The loan, from the bank’s ordinary capital, will be disbursed over a 4-year period. It is for a 20-year term, including a 4-year grace period, and carries a variable interest rate based on Libor.

CAF and the China Development Bank (CDB) are planning to sign loan management agreement, with a formal announcement expected this month. “We are presently working on expanding our relationship with the CDB. We discussed loan management and agreed it was a good idea to pursue,” CAF CFO Hugo Sarmiento tells LatinFinance. He says it is too early to give any specific details, but a memorandum of understanding should come “in the next few weeks.” CDB, the Chinese government’s main means of lending abroad, and has this year signed LatAm loans including $10bn for Petrobras and $1bn to America Movil. CDB is planning to open a Rio de Janeiro office as soon as 2010.