CAF has approved $660m in loans and credits to three separate borrowers. It agreed to lend $300m to Colombia’s Bancoldex, to help it support SMEs. The Andean development bank also plans to extend a $210m credit line to Panama’s Banconal. Finally, it will lend $150m to Uruguay’s UTE electricity generation and transmission administrator, to support a 3-year program to strengthen the country’s electrical system.
Category: Structured Finance
Posted inDaily Brief
Infonavit Plots MXP2.7bn Issue
Infonavit plans to sell MXP2.72bn in 2030 UDI-denominated RMBS mid-December, and is heard targeting the week of December 15. The plan calls for a time-tranching structure used in previous issues, with the offer divided into a MXP1.49bn senior tranche amortizing ahead of a second MXP1.23bn senior piece. The notes will be backed by 20,850 of the Mexican lender’s own credits. Banamex and HSBC are managing the transaction, rated AAA on a national scale. The government-supported lender sidestepped weary investors last month by privately placing MXP3.65bn equivalent in UDI-denominated 2030 RMBS with a single buyer. It hopes to follow Su Casita’s placement of MXP1.65bn in 2035 RMBS.
Posted inDaily Brief
Mexican RMBS Springs to Life
Given long odds of putting out another issue this year, the Mexican RMBS market is showing faint signs of life. Su Casita – a securitizer that needs to issue to survive – has leaned on Sociedad Hipoteca Federal to place MXP1.65bn in 2035 RMBS. The Mexican state lender committed to buy at least 20% of the issue, an SHF official tells LatinFinance, declining to state the amount, which was subject to the final participation from other investors. The transaction was heard placed with a small number of buyers, and also aided by a guarantee from FMO of the Netherlands, the first such guarantee Su Casita had used in at least a year. Using the time-tranching structure becoming commonplace in the Mexican market, Su Casita priced a MXP827m slice at 5.86% and an equally sized tranche amortizing after the first at 6.56%. HSBC managed the sale, rated AAA on a national scale. Infonavit and BBVA Bancomer hope to follow later this month with transactions of up to MXP2.7bn and MXP6.4bn, respectively. The RMBS market is aided by the last week’s IDB announcement of a $500m 25-year loan to SHF, as part of a $2.5bn credit facility supporting the Mexican mortgage sector. The funds are in addition to $150m the IDB will make available directly to Mexican mortgage lenders, following a similar IFC facility.
Posted inDaily Brief
Colombia, El Salvador, Suriname Get IDB Cash
The IDB has approved a $250m loan Colombia to improve water and sanitation services. The bank says this will be the first in up to 3 loans to be disbursed. Colombia intends to increase urban water service coverage from 94.5% to 97.8% in 2011, and in sanitation from 90.1% to 93.2%. Terms were not disclosed. The IDB will also lend $500m to El Salvador to improve the safety net for the poorest municipalities and households. The 2-tranche loan for $200m in 2008 and $300m in 2009 will have a 20-year term with a 5-year grace period at a variable interest rate. And Suriname has obtained a loan of up to $62.5m to repave the 140-km long Meerzog-Albina road, the IDB says. The loan will finance 49% of the total cost of the project. Part of the money will come from the bank’s ordinary capital, with maturity periods of 25-30 years and grace periods of 5-6 years. Another portion will come from the bank’s Fund for Special Operations. The facility will be denominated in US dollars and have a disbursement period of 5 years, the IDB says.
Posted inDaily Brief
IDB Offers Mexico Housing Boost
The IDB has agreed provide $2.8bn in financing through three facilities to boost liquidity in the Mexican mortgage and housing sector, it says. It will provide a 10-year $2.5bn sovereign-guaranteed credit line to Sociedad Hipoteca Federal, the first disbursement of which will be a $500m 25-year loan paying a spread over Libor. In a separate, part of the package, the IDB will offer up to $150m equivalent in pesos to eligible Mexican mortgage lenders, following a similar $150m facility brought by the IFC in October. Through the facility, the IDB can provide mezzanine credit support via partial credit guarantees or purchases of mezzanine notes by way of a loan to a trust. It is also able to finance the purchase of up to 15% in RMBS though a loan to a trust, and provide an unsecured loan to a fund providing supporting lenders. Finally, the IDB will make available a $185m loan facility to state-backed lender Infonavit, to support mezzanine portions of its RMBS issuance. Both the $150m and $180m non-sovereign guaranteed loan facilities are available for 3 years, renewable for another 3.
Posted inDaily Brief
IDB Tightens Corporate Screws
Private sector companies and projects hoping to tap into IDB funds are more likely to be told no in the coming year as demand for the multilateral’s balance sheet soars. Faced with a substantial rise in requests from sovereigns, the IDB will be even more selective in evaluating projects, favoring those that meet stringent development criteria, says an official at the lender. Governments will likely have priority access, reducing the pool available to corporates. However, people at the institution note that the total budget will increase some 20% in 2009. “It’s going to be a complicated, ongoing allocation process in the coming year,” notes an IDB executive, who adds that there is no blanket rule or country limit to determine allocation. Among the IDB’s biggest clients in the region are Colombia, Peru, Brazil, Chile and Panama. IDB president Luis Alberto Moreno said this week that the multilateral will likely lend some $12bn in the coming year, with an additional $6bn coming from an emergency lending facility destined for sovereigns only. That is up from the $9bn-$10bn expected in 2008. The IDB’s private sector division, whose deals can account for no more than 10% of the IDB’s total loan exposure at any given point, approved $2.2bn in loans in 2007. The figure for 2008 is likely to have risen, say bank officials, who decline to specify volume. The IDB has played a major role in providing funds for projects and companies across the region. As needs rise and capital markets remain shut, a reduction in multilateral funds creates added woes for the private sector. Other multilaterals are expected to follow suit with a pullback from corporates, say bankers.
Posted inDaily Brief
Su Casita Readies RMBS
Su Casita aims to place MXP1.65bn in 2035 RMBS as soon as Thursday. The Mexican mortgage lender plans to use the time-tranching structure seen in its other deals this year. The issue will be split into two equal tranches that amortize one after the other. To get it done in this difficult market, Su Casita is making use of a partial guarantee from FMO of the Netherlands, the first time it as used such a guarantee in at least a year. The issue is rated AAA on a national scale and HSBC is managing it. If successful, BBVA Bancomer could also follow through on a 2029 MXP-denominated issue of up to MXP6.4bn, for which it recently began the regulatory process. Before markets closed down earlier this year, Su Casita was one of Mexico’s most active local issuers. Spain’s Caja Madrid bought a 60% stake for $342m, taking its ownership to 100%.
Posted inDaily Brief
IDB Lends $60m to Jamaica
The IDB says it is lending $60m to Jamaica. The loan is for a 20-year term with a 5-year grace period at a variable interest rate. The funds will be used to finance a reform program to improve efficiency of public expenditure by strengthening fiscal discipline and modernizing its public financial and performance management practices.
Posted inDaily Brief
Mexican RMBS at the Ready
Despite bleak prospects for the rest of 2008 and early 2009, Mexican issuers of RMBS are busy making plans in case the market revives. BBVA Bancomer, which placed a record MXP4.829bn equivalent in UDI-denominated 2033 RMBS in August, has filed for an offering of up to MXP6.4bn in 2029 peso-denominated notes. The paperwork, however, serves to have a deal at the ready if comparable Mbono spreads – some 150bp higher than August – return to levels appropriate for placing a transaction, according to an official working on the transaction. Separately, Su Casita has filed with the Bolsa for an RMBS issue through HSBC, without detailing an amount or maturity. America Movil and Arca are two of the corporate names with filings registered for when markets bounce back.
Posted inDaily Brief
IDB Lends $20m to Nicaragua
The IDB has approved a $20m loan to Nicaragua. The loan includes a $10m financing for a 30-year term at a 5.5-year grace period at a variable interest rate and a $10m financing from the fund for special operations for a 40-year term and grace period at an interest rate of 0.25%. Nicaragua’s Ministry of Agriculture and Forestry will carry out the program, which aims to improve the skills and access to technology of farmers.