Interbank Pulls Sweetened Syndication

Peru’s Interbank has canceled the syndication of a loan after it became clear that interest in the $200m 3-year step up was not sufficient to get a full book, say bankers away from the transaction. The deal via Standard Chartered was originally launched as a 3-year working capital facility paying 85bp-95bp over Libor. It was then restructured and flexed so that a $100m 3-year trade facility offered 85bp-95bp, and a $100m 3-year working capital portion paid 100bp-120bp over Libor. That still did not do the trick, and the borrower was forced to exit. Bankers close to the process say the Interbank plans to come back when conditions are more amenable. Interbank is also lining up a $150m 5-year MT100 though Credit Suisse.