Peru LNG has received the funds from the syndication of a $400m IDB syndicated B loan and lenders are now heard redistributing their portions of the facility to secondary lenders. Pricing in the 3-year pre-construction period is heard to have been bumped up to 100bp from 75bp. In years 4-5, the first two years of the construction period, pricing remains at 100bp, stepping up to 120bp in years 6-10 and 150bp in years 11-15, says a banker close to the process. Up front fees for $50m tickets are heard at 60bp, while $40m tickets will receive 50bp. For $30m ticket, fees are 40bp, says a banker involved. SocGen and BBVA led the financing with a handful of MLAs, including ING, Mizuho and Sumitomo Mitsui, supporting the deal. Peru LNG also obtained a $300m IFC A loan, a $400m IDB A loan and a $150m direct loan from the Export Import Bank of Korea.
Category: Structured Finance
Peru’s Titulizadora Warms up Debut RMBS
Peruvian mortgage securitizer Titulizadora Peruana plans to issue $40m in 15-year RMBS as early the end of this month. The shop’s first issue will be backed by a pool of dollar-denominated mortgages originated by Banco de Credito del Peru and Interbank. Dollar-denominated loans make up about 75% of Peru’s mortgage market, explains Titulizadora CEO Enrique Oliveros, although there is a trend towards more sol-denominated lending. The shop plans to securitize sol-denominated loans in future issues and will look at the possibility of bonds with tenors longer than 15 years, which is contingent on the pickup in in longer-dated mortgages. Titulizadora expects a second issue of equal or larger size by the end of the year. Bookrunners have yet to be selected.
Eletrobras Brings Long-Dated Financing
Brazilian power utility holding company Eletrobras will today launch syndication for a $450m B-loan, part of a $600m CAF A/B financing. Proceeds to the state-owned BBB minus credit are destined for capital expenditures. The 7-year B-loan carries a margin of Libor plus 150bp and amortizes in years 4-7. CAF, meanwhile, is lending Eletrobras $150m in 12-year funds — a significant tenor for a Brazilian borrower. The deal, joint led by Citi, BNP and SocGen, is being launched amid much fanfare despite the long tenor, and is heard already counting on MLA support from Natixis, ING, BBVA, Santander and Sumitomo, says a banker close to the process. “Going forward we will be doing a lot more lending in Brazil and Argentina,” a CAF official tells LatinFinance, referring recent commitments of $500m from each country to the development bank, to be disbursed over the next five years. Today’s deal marks the third time Eletrobras has tapped CAF for funds, the first loan having taken place in 2003, says the official. A second bank meeting in Sao Paulo is scheduled for Wednesday.
Cabei Approves Food Program
Cabei has established a $300m program to help offset a food crisis in Central America. The mechanism seeks to increase local production of food staples to cut the dependence on imported goods, the bank says. The program provides for a $50m line of credit to be distributed equally among the bank’s members, plus $40m for each country to establish a trust to help boost food production. The program also allocates $10m for a public-partner partnership in each country for infrastructure project. The bank has 5 member countries: Guatemala, El Salvador, Costa Rica, Honduras and Nicaragua.
IDB Approves $58.5m Loan for Argentina
IDB has approved a $58.5m, 25 year adjustable interest rate loan to the province of Rio Negro in Argentina for an extended school day program to promote educational opportunities for primary school students from low-income families. The loan, guaranteed by the Argentine government, has a 5-year grace period. Local counterpart funds for the loan total $6.5m.
Antofagasta, Marubeni Seek Mining Financing
Chilean miner Antofagasta and Japan’s Marubeni are seeking to raise roughly $2bn in ECA financing through JBIC, according to a banker close to the transaction. The funds, which could reach tenors of up to 10 years depending on the needs of the mining projects, would be destined for copper exploration. The companies are heard to be in discussions to establish their exact funding needs for a joint project.
IDB to Loan to Social Venture Group
The IDB has approved a $25m loan to venture capital firm IGNIA Partners, the first time it has lent to such an entity. The Mexican firm invests in projects serving low-income individuals with basic housing, health care and other needs, and aims to invest up to $100m in eight to 12 growth companies in LatAm and the Caribbean. In addition to the loan, the IDB’s Multilateral Investment Fund will be considering a $5m equity stake in the IGNIA Fund I. The Fund closed last week at $20.6m, with a second close expected this summer as it targets $50m-$75m.
Usiminas Raising New Bank Financing
Brazilian steelmaker Usiminas is looking to raise $400m in new financing using an IDB A/B structure, according to a banker away from the transaction. The multilateral is heard to be providing the company with a $50m 9-year A loan. For the $350m syndicated, or B, portion the company is targeting tenors of 7 years. An RFP is out to banks for a mandate to lead the syndication. Proceeds are being used to increase Usiminas’ energy efficiency. In February, Usiminas raised $1.3bn in a two-part syndicated loan via HSBC, with 5 and 7 year tenors on a trade facility paying Libor plus 110bp and 135bp respectively, and a 2-year liquidity facility at Libor plus 75bp.
Infonavit Places Jumbo RMBS
Mexican lender Infonavit has placed a MXP3.5bn 2-tranche 2023 RMBS denominated UDI inflation-linked units. A MXP1.69bn-equivalent tranche with an average life of 2.8 years priced at 4.64%, or 105bp wide of comparable UDIbonos. A MXP1.83bn-equivalent tranche with an average life of 7.7 years came at 5.21%, or 135bp. Each was about 1.6x oversubscribed, according to a banker on the sale. Funds from the AAA locally-rated deal will enhance the government-backed lender’s credit portfolio. The transaction was the first in which Infonavit took advantage of the “Anexo K” rule, allowing risk to be assigned to the trustee issuing the securities rather than the originator of the credits being securitized. The change frees up investors already holding Infonavit paper to purchase more without adding Infoanvit exposure. HSBC and Banamex managed the sale, with Deutsche Bank as co-manger.
BBVA Mexico Preps Jumbo RMBS
BBVA Bancomer has filed to place MXP5.08bn in a 2028 RMBS. The lender expects to execute the single-tranche transaction, by far the largest of its kind to date in 2008, this month. The notes are backed by a pool of more than 9,000 credits originated by its mortgage unit. It placed MXP1.48bn in RMBS in March, the first offering from a MXP20bn program. The bank’s own securities unit will manage the sale.