Cabei has priced a TWD1.9bn ($57m) 2-year fixed rate bond in the local Taiwan market at par to yield 2.60%. The issue is the third tranche from a TWD7.0bn program, following a mid-December issue of TWD1.3bn, and a TWD1.8bn follow up Tuesday. The Central American multilateral wanted to wrap up the third piece before Chinese New Year, a Cabei official says, and a fourth is likely in February. The lender rated A2/A minus is also planning 2 issues in other countries for January or February. HSBC is sole bookrunner on the TWD issuance.
Category: Structured Finance
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Lead Banks Buy in to Peru DPR
Sumitomo Mitsui and WestLB have each bought 50% of a $250m 2016 diversified payment rights (DPR) securitization from Peru’s BBVA Continental. The two banks also managed the transaction. Officials at BBVA declined to disclose pricing on the bonds, typically a spread over Libor. Fitch rated the bonds A. DPR transactions, or MT100s, are backed by future revenue flows from electronic payments and are often used by financial institutions to raise funds when broader capital markets access is more limited. The Peruvian bank attempted to place an MT100 issue after the program, its first, was approved last summer, but ran into unstable markets in the second half of the year.
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Cabei Adds to Taiwan Issue
Cabei has priced a TWD1.8bn ($54m) 2-year fixed rate bond in the local Taiwan market at par to yield 2.60%. The issue is the second tranche from a TWD7.0bn program, following the mid-December issue of TWD1.3bn. Three institutional investors bought into the deal, Cabei treasurer Felix Magana tells LatinFinance. It featured a gradual, non-public book building process where the size of the issue is tailored to investor demand. Three different buyers participated in the first tranche, he says. “It was very important to launch a deal at the end of the year as a message to the markets,” Magana explains. He says a third tranche can be expected later this month, with a fourth likely in February. The lender rated A2/A minus is also structuring 2 issues in other countries for January or February, he explains, declining to state where. Cabei has now issued 5 times in Taiwan, a member nation of the Central American multilateral bank. HSBC is sole bookrunner on this and the first series of TWD issuance.
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BBVA Continental Kicks Off DPRs
Peru’s BBVA Continental has issued a $250m 2016 bond, its first diversified payment rights (DPR) securitization offering from a new program. The notes rated A by Fitch were placed privately. Finance officials at BBVA and placement agent Sumitomo Mitsui declined to disclose the identity of the buyer or the interest rate on the bonds. DPR securitizations have become an attractive option for LatAm banks to raise capital amid the market volatility of the past 18 months. Typically the bonds, also known as MT100s, pay a spread over Libor and are placed with a single investor, often the arranging bank. The transaction follows fellow Peruvian BCP’s placement of $150m in 7-year DPR bonds last month. BBVA Continental attempted to place an MT100 issue after its program was approved last summer, but ran into unstable markets in the second half of the year.
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Infonavit Caps Tough Year for Mexico RMBS
Mexican lender Infonavit has sold MXP2.16bn in 2030 UDI-denominated RMBS, its final transaction in a challenging year for mortgage-backed issuers. The deal was split into 2 equal tranches which amortize one after the other, pricing at 5.55% and 6.25%, respectively. The transaction was marketed openly but placed entirely with a single Mexican financial institution, Jose de Jesus Gomez, director of Infonavit’s RMBS program, tells LatinFinance, declining to name the buyer. “The most important thing we’ve done this year is show we can adapt our strategy to achieve our objectives,” he says. In November, Infonavit sold a MXP3.65bn private placement when markets were especially tough. Gomez says continued flexibility will be needed in 2009, though it is too soon to tell to what extent the markets could recover. Banamex, Deutsche Bank and HSBC managed this week’s transaction.
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IDB Lends $75m to Noble Argentina
The IDB has approved a loan of up to $75m to Noble Argentina so it can build a soybean crushing plant in Santa Fe province. “The IDB financing will help Argentina cement its position as a major player in the international market for soybean byproducts, as the new plant could generate more than $640m a year in exports,” says IDB project team leader Martin Duhart. Separately, the IDB says it will double its annual grants to Haiti to $100m in 2009. The multilateral gave the country $50m in grants in 2007 and 2008. The funds will go to investments in social and economic programs.
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CAF Monitors Bond Opportunity
Caracas-based multilateral CAF says it is sitting pretty for funding and in no hurry to come back to the bond market. “We’re not in a rush. We have very high liquidity and we are waiting for conditions to improve,” Gabriel Felpeto, CAF’s director of financial policies and international issues tells LatinFinance. CAF returned last week to Colombia’s local market with an oversubscribed bond issue at apparently attractive levels. It issued Tuesday COP245bn ($110m) total, split between an 11.25% of 2013 and an 11.79% of 2018. Pricing was equivalent to 65bp over TES, while other Triple As came recently at 100bp-120bp over TES and 65bp was in line with the target, he adds. “We didn’t have the need this year but we had the opportunity,” says Felpeto. The deal through BBVA was the debut from a COP1trn 3-year CAF program and the first from the multilateral since 2004. Felpeto adds that CAF is looking at tapping other local currency like Peru and Mexico, while also monitoring the USD market. CAF was hit last week with a negative outlook from S&P on its A+/A-1 rating amid concerns about exposure to Ecuador, which is in default, as well as Venezuela and Argentina. The multilateral is among the region’s highest rated borrowers and typically leads the way back for issuers when markets slam shut.
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El Salvador Gets IDB Infusion
The IDB has approved a $400m loan to El Salvador so the sovereign may increase the availability of credit to the private sector. The loan is for 5-years, including a 3-year grace period, and priced at 6-month Libor plus 400bp. The central bank will use the funds to purchase short-term portfolio receivables for working capital and trade financing, thereby providing local financial institutions with new short-term loans for working capital and trade credits.
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IDB Lends $500m to Costa Rica
The IDB has approved a $500m loan for Costa Rica. The funds will help the country’s central bank extend lending in dollars to local financial institutions so that they can channel additional credit for working capital and trade financing to exporters and other enterprises within the export chain. The loan is for a 5-year term, with a 3-year grace period, at 400bp over 6-month Libor on an annualized basis.
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Cabei Taps TWD
Cabei priced this week a TWD1.3bn ($40m) 2-year fixed rate bond in the local Taiwan market at par to yield 2.60% from a TWD7bn program. The transaction followed investor meetings in Taipei with both existing and new accounts. Taiwan is a member country of Cabei and of strategic importance to the Central American multilateral financial institution, which has now issued five times in TWD since 1997. Cabei is rated A2/A minus. Settlement is December 29 and maturity December 29 2010. HSBC was sole bookrunner.