Fitch has assigned a BBB rating to 2019 Tier-2 bonds to be issued by Bradesco, it says. The agency will assign the hybrid securities 75% equity credit, and for this reason rates the issue below the bank’s default rating of BBB+. “Bradesco has historically maintained adequate capitalization ratios and the bank will use the proceeds from the planned issue to replenish its regulatory Tier II capital as existing debt instruments mature, or its remaining maturities fall below minimum regulatory guidelines rendering those instruments not eligible as capital,” the agency says. The bond is expected to be at least $200m in size. HSBC is managing the transaction, done through Bradesco’s Cayman Islands unit.
Category: Structured Finance
Posted inDaily Brief
Mizuho Teams Up With Itau-Unibanco
Japan’s Mizuho Corporate Bank and Itau Unibanco have agreed to collaborate on corporate finance, including trade, ECA and project finance, as well as settlement. As part of the agreement, Mizuho, which has an office in Sao Paulo, will be able to use Itau’s office network. Itau has almost 5,000 branches in Brazil.
Posted inDaily Brief
Fovissste Brings Follow-up RMBS
Mexico’s Fovissste has sold MXP4bn-equivalent in 2031 domestic bonds, in its second-ever RMBS transaction. The UDI-denominated notes priced at a 5.39% fixed rate, or Udibonos plus 272bp. The transaction was 1.2x subscribed, according to an official at one of the leads. Banorte, Ixe and BofA-Merrill Lynch managed the deal, rated AAA on a national scale, with Goldman Sachs as structuring agent. In June, the mortgage lender sold MXP3.5bn in 2039 bonds at 5.31%, or UDIbonos plus 225bp, through the same leads.
Posted inDaily Brief
Mexico Agro Gets Multilateral Support
The IDB has approved a $750m loan to support rural areas in Mexico. This is the first transaction under a $2.5bn credit line, the multilateral says. The loan was approved for a 25-year period, with a 5-year grace period, and a Libor-based interest rate.
Posted inDaily Brief
Colombia Snags IDB Line for Water Services
The IDB has approved a $27.8m loan for Colombia’s Pasto municipality to ensure its urban and rural residents have access to high-quality, efficient, and sustainable water and sewer services. The loan is for 25 years with a 6-year grace period and an interest rate based over Libor. The government of Colombia will provide $16.2m in counterpart funding, for a total program budget of $44m, the development bank says.
Posted inDaily Brief
Infonavit Readies RMBS
Mexico’s Infonavit is targeting late September for the sale of MXP3bn in 2031 RMBS. It would be the fourth sale of the year for the government-backed mortgage lender, and follows the same UDI-denominated single-tranche structure as this month’s placement of MXP1.5bn in 2031 RMBS at a fixed rate of 5.32%. Banamex and HSBC are managing the sale, rated AAA on a national scale. Infonavit has placed MXP6.1bn of the MXP10bn-MXP15bn it is aiming to raise by the end of the year, and Joaquin Escamilla, director of its mortgage-backed bond program, has said he is optimistic it will hit the target.
Posted inDaily Brief
IDB Financing Argentina Tech Development
The IDB has approved a $100m credit line for Argentina, to help it finance its technological innovation program. This is the first of 3 operations totaling $750m, the multilateral says. The other 2 operations would come into effect in 2011 and 2013. The first credit line was approved for a 25-year period, with a 5-year grace period, and a Libor-based interest rate.
Posted inDaily Brief
DomRep Gets IDB Loan
The IDB has approved a $70m loan for the Dominican Republic so it can enhance its conditional cash transfer program. This loan represents the first of a $300 million multiphase program and has a 25-year term, with an 18-month grace period, and a Libor-based interest rate.
Posted inMagazine
Mexican RMBS Hits Resistance
Mexican RMBS sprang to life in August with BBVA Bancomer’s 5.9 billion pesos worth of borhis. However, further issuance is likely to be light. “The panorama is very complicated for […]
Posted inDaily Brief
Cabei Plots Costar Bond Return
Central American development bank Cabei is planning a 5-year bond issuance in the Costa Rican domestic market, treasurer Felix Magana tells LatinFinance. The issue should be for CRC35bn ($70m) and take place in the first week of September. Citi is managing the sale, which follows February and June placements in that market that totaled CRC26bn. Magana also says the bank will look to place again in Taiwan and Colombia, markets where Cabei has already issued this year, as it continues to diversify funding sources. The multilateral is also considering USD issuance, its first in that market since 2005.