Category: Structured Finance

Moody’s has upgraded Bladex to Baa2 (stable) from Baa3 because of increasing core profitability, earnings diversification, and improving asset quality. It also likes the management’s strategy to broaden the bank’s activities in trade finance and securities business in the LatAm and the Caribbean. “The addition of value-added products such as factoring and leasing is expected to leverage management’s relationship, product and risk assessment capabilities and lead to increasing profitability over time,” says Moody’s. “The bank’s liquidity and funding structure has also been strengthened by growth and diversification in its deposit base and by increasing access to longer term funding from banks and official institutions,” it adds. Risks include high competition in core businesses and relatively thin margins and fees that reflect the bank’s emphasis on high quality names and the predominantly short term trade finance-related nature of its business. “Another important risk factor is the bank’s dependence on wholesale funding, though this risk is partly mitigated by its predominantly short term loan book and emphasis on liquidity management. In light of currently stressed financial conditions in the global markets, should these continue, Bladex could be subject to higher funding costs,” adds Moody’s.

The District of Bogota has received Colombian government approval for $100m in loans from CAF and the IFC and awaits the final approval from the multilaterals. “We expect to have final approval by year end,” Rigoberto Lugo, the city’s public credit director, tells LatinFinance. “With the multilaterals, we are able to obtain funds at competitive terms to complement the $300m raised in the international capital markets this year.” A $55m loan from CAF and $45m loan from the IFC pay 125bp over Libor. Proceeds finance part of a $500m infrastructure program in Bogota, making improvements to roads, schools and hospitals. In July, Bogota sold $300m in 2028 TES-denominated bonds via Deutsche Bank and Citi.

ICE, Costa Rica’s national power and telecom company, will in the next two months raise $381m in long-term financing via the IDB and the syndicated loan market to support its infrastructure development in that country. The IDB is targeting a $200m 15-year A loan and a $181m 12-year B loan that will be syndicated out in the bank market. An official close to the process says using project finance-like covenants on the facility will allow lenders to monitor performance of the borrower and the loan over time. This is also the first IDB loan to a quasi-sovereign without a sovereign guarantee, marking a deliberate effort by the multilateral to broaden its private sector mandate. A bank meeting will be held in the second week of January and syndication will likely be wrapped up by the end of February.

Bladex, the Panama-based supranational bank, has named Jaime Celorio as its CFO, effective February 22. Celorio was previously with Merrill Lynch and Goldman Sachs and replaces Carlos Yap, who leaves Bladex after 27 years to pursue other opportunities.

Cabei, the Honduras-based multilateral, is arranging a loan worth up to $52.1m for Colombia’s Hidroelectrica del Teribe. Proceeds will finance a 31.3MW hydroelectric project in Panama. The plant is part of the Central American regional SIEPAC initiative.