IDB has approved a $50m 6-year loan for Ecuador’s Banco Pichincha to increase financing for small business, micro enterprises and housing. An official of the multilateral declined to provide price terms on the facility, citing internal policies. A syndicated loan of $25m from foreign banks may complement the IDB transaction, the multilateral says. Additionally, the IDB’s Multilateral Investment Fund may provide up to $500,000 for a project to improve Pichincha’s methodologies and technologies to serve small businesses.
Category: Structured Finance
Posted inDaily Brief
Infonavit Preps RMBS
Mexican lender Infonavit is preparing an issue of MXP2bn-MXP3bn of 2030 RMBS for mid-June, Jose de Jesus Gomez Dorantes, head of its Cedevis program tells LatinFinance. The issuer has filed for up to MXP3.5bn, but is still working out the amount, to be denominated in the UDI inflation-linked unit. The transaction will feature a similar time-tranching structure as a MXP3.1bn UDI denominated 2030 RMBS issue placed in April, with two tranches offering different weighted average lives. “We don’t believe in changing structures from one deal to the next,” Gomez says. “Investors must know what they are buying.” Infonavit aims to place its entire MXP15bn shelf by the end of the year, leaving roughly MXP9bn to go after June. Banamex and HSBC are managing the sale, with Deutsche Bank as co-manager.
Posted inDaily Brief
Titulizadoras Line up RMBS
Titulizadora Colombiana plans to sell COP400bn ($223m) in a multi-tranche RMBS next week with a similar structure to an April issue. The securitizer plans to complete 5-6 similar fixed-rate peso-denominated deals this year, Javier Utria-Lazcano, investments and market development director tells LatinFinance. He adds that it may also do an inflation linked transaction. The structure will be similar to April’s sale of COP207bn in 2018 and 2030 senior and subordinated notes. Utria-Lazcano notes that at this point in the development of the Colombian markets, it is best to keep transactions simple to continue to develop the asset class, with diversification of products as it progresses. Meanwhile, Titulizadora Peruviana – in which Titulizadora Colombiana is invested – plans to issue an RMBS in the next few months. A second is likely to follow by the end of the year, with the pair expected to total roughly $100m. Titularizadora Colombiana, which is backed by the IFC and Colombian private mortgage banks, provides a link between the capital market and housing sectors by issuing MBS.
Posted inDaily Brief
Infonavit Preps MXP3.5bn RMBS
Mexican lender Infonavit is preparing to sell MXP3.5bn in 2030 RMBS denominated in the UDI inflation-linked unit, according to a regulatory filing. It plans to price a MXP1.66bn A1 and MXP1.83bn A2 tranche June 11. The notes are backed by a pool of 23,300 Infonavit residential mortgages. Banamex and HSBC are managing the sale, with Deutsche Bank as co-manager.
Posted inDaily Brief
Ethanol Startup Fuels Loan Package
Brazilian ethanol startup CNAA is putting together a $670m financing including an IDB A/B loan and a pre-export facility, an official close to the company tells LatinFinance. The privately held greenfield company hopes to achieve a tenor of 15 years on a $250m A loan with pricing potentially in the Libor plus 300bp-350bp region, according to the executive. A $300m syndicated B-loan could reach 13 years and carry a margin of Libor plus 300bp, he adds. BNP Paribas has been tapped to lead the syndication, expected to get underway shortly. CNAA has also recently closed a $120m pre-export loan via Bradesco, ABN AMRO and Banco Espirito Santo. The 7-year club pays Libor plus 275bp. According to the executive close to the company, the A/B transaction is the first project loan for Brazil’s ethanol and sugar sector. He sees structured finance playing a bigger role in his industry as companies build out mill complexes. Odebrecht ethanol startup ETH also plans to use project finance for its initiatives, that company’s officials told LatinFinance late last year. CNAA has roughly $330m in equity, much of which is held by private equity funds belonging to Goldman Sachs, Carlyle Riverstone, Merrill Lynch, Discovery Capital, and Global Foods. SantelisaVale owns a 28% stake in CNAA.
Posted inDaily Brief
IDB Approves Brazil Environmental Loans
The IDB has approved an $83.2m 25-year variable interest rate loan for improvements in the quality of water and in infrastructure to avoid floods in Porto Alegre, Brazil. The facility will help to improve environmental management in the municipality of Porto Alegre and promote efficient municipal water, sanitation and storm drainage services, the multilateral says. The loan has a 5-year grace period. The multilateral also approved a $56.7m 25-year loan to the municipality of Goiania for an urban environmental program in the Macambira and Anicuns River watersheds.
Posted inDaily Brief
Banco Industrial Hybrid Details Emerge
Guatemala’s Banco Industrial priced an offering of Tier 1 capital securities worth $30m. The issue, cloaked in secrecy at the time of pricing last week, is made up of 60-year non-call 10 debt securities that switch from fixed to floating-rate notes in year 10. In the first 10 years, they pay an annual coupon of 9%. In year 10, if not called, they jump to Libor plus 600bp, a figure that was calculated by adding the April 25 10-year Libor spot rate of 450bp to a spread of 150bp. The notes, which priced at par, are rated Ba3/B+/B+, and get 100% equity treatment. At 9%, the transaction was seen as aggressive, especially versus higher-rated hybrids from US commercial banks in the past two months, which were done at 8%-10%. That partly explains the smaller size of the deal, says a banker close to the process. Credit Suisse led and Guatemalan investors were among the buyers.
Posted inMagazine
Local Currency Extensions
After a long struggle to define itself as a relevant institution, the IDB is proving its worth as a local currency innovator. It seeks to lend more and leverage guarantees.
by James Crombie
Posted inMagazine
Shifting the Paradigm
LatAm has undergone constant evolution in the last 20 years, says CAF president Enrique García. But income inequality remains a glaring problem.
by Julio Urdaneta
Posted inDaily Brief
IDB Approves Financing for Brazil’s Sabesp
The IDB has approved a $250m 15-year loan for Sabesp, the water and wastewater company of the state of Sao Paulo, Brazil, to support capital investment. The multilateral will provide Sabesp an A loan of up to $100m from ordinary capital and a syndicated B loan of up to $150m from commercial banks to help finance part of the utility’s 2007–2010 capex program. Funds will also be used to refinance part of Sabesp’s debt, including a eurobond maturing in June 2008. Pricing and terms were not disclosed. The deal is not guaranteed by the sovereign.