Ecuador has agreed to a $312.5m loan from the Export-Import Bank of China to help fund its Minas San Francisco Hydroelectric Project, according to a government source. The plant is expected online in December 2015, with a 270 megawatt capacity, at a cost of $477m.
Latest News
Posted inDaily Brief
Financing Moves Ahead for PLSVs
Brazil’s Odebrecht Oil and Gas and France-based engineering and construction firm Technip are in the final stages of negotiation to finance a pair of pipelay support vessels (PLSV), according to people familiar with the transaction. A loan of more than $500m is expected for the $1bn project. The two firms are building the vessels through a 5-year joint venture with a 5-year extension option, awarded in 2011. DNBNor is advising on the deal, which is expected to close as soon as this month. The ships are being assembled at the Daewoo shipyard in South Korea.
Posted inDaily Brief
Maxcom Sweetens Terms, Hints at Restructuring
In the hopes of meeting a June coupon payment, Maxcom Telecomunicaciones has improved the terms on its bond tender offer, it says, and extended the deadline to April 24. The 2020 bonds being offered will now pay 7.0% during the first three years, 8.0% during the following two years and 10.0% during the final two years – in place of the previous step-up from 6.0% to 8.0%. The telecom is offering the 2020s in exchange for its outstanding 11.0% 2014 bonds. As of Wednesday, it had received acceptance from holders of 42.13% of the 2014s, and from holders of 44.87% of the Maxcom class A shares for which it is also tendering. The stock tender deadline has similarly been extended to April 24. The offers follow the agreement last year for Mexican private equity firm Ventura Capital Privado to buy Maxcom, at an enterprise value of about $270m. The company says the tender is necessary to make its next interest payment on the 2014s, and that it has hired lawyers to plan for a restructuring in case the tender is unsuccessful.
Posted inDaily Brief
Peru Maintains Rates
Peru’s central bank has held rates, keeping the benchmark at 4.25%, in line with market expectations. “The decision is based on inflation being within the target against a background of economic growth close to potential,” the bank says. The benchmark has been at 4.25% since June 2011, and there is a wide expectation that the trend will continue.
Posted inDaily Brief
Peruvian Meets Buyside
Ferreycorp, the holdco for Peruvian heavy machinery distributor Ferreyros, plans to begin a roadshow today ahead of what would be a debut in the international bond market, CFO Patricia Gastelumendi tells LatinFinance. A $300m 10-year senior unsecured transaction is likely, according to a Moody’s report assigning a Ba1 rating. Starting in Lima, Ferreycorp will visit London, Santiago, Switzerland, Los Angeles, Boston and Los Angeles before finishing in New York Thursday. Bank of America Merrill Lynch and JPMorgan are managing. The Lima-based distributor for Caterpillar, Atlas, Copco and other brands had been waiting until to issue after a corporate reorganization was completed in July last year, splitting its operations into automotive and machine units, both under the holdco. Recent Peruvian cross-border deals should provide reference points, Gastelumendi says. This could include Maestro’s (Ba2/BB minus) 2019 NC4, which priced at a 6.750% yield, Milpo’s (BBB/BBB minus) 2023, at 4.625%, and Alicorp’s (Baa2/BBB) 2023, at 3.895%.
Posted inDaily Brief
BTG Arm Clinches 5-year
BTG Investments has raised $700m from a 2018 bond sale, according to sources following the transaction. The proprietary investment entity for Brazil’s BTG Pactual drew $2.5bn in orders for its first-ever bond, offering investors a pickup to the bank’s curve. The BBB minus note priced at 99.448 with a 4.500% coupon to yield 4.625%, or UST+389bp, in line with 4.625%-area guidance that tightened from 4.75%-area talk. The entity holding part of BTG’s proprietary trading investments and merchant banking investments was seen coming about 50bp-60bp back of where a new BTG 5-year might price, according to people following the sale. The bond was trading around reoffer Wednesday afternoon, according to a trader. Bank of America Merrill Lynch, Banco do Brasil, Bradesco, BTG Pactual and Citi managed the transaction. BTG Investments is rated BB+, through the transaction got a BBB minus rating due to a guarantee from BTG Pactual Holding.
Posted inDaily Brief
Cementos Argos Advances
Colombian regulators have approved the sale of up to 250m shares through an equity follow-on from
Cementos Agros, Argos says. A sale of the full authorized amount would raise COP2.20trn ($1.21bn) at Wednesday’s COP8,800 closing price. JPMorgan and HSBC are global coordinators, with Bank of America Merrill Lynch, Credit Suisse and Itau as bookrunners.
Posted inDaily Brief
Chile, Peru Expected to Hold Rates
Chile is expected to hold its benchmark interest rate at 5.0% when the central bank meets today. Some, including RBS, say a hold for the rest of 2013 is likely. “Under this set of assessments and forecasts, no change in the TPM rate will be required for the foreseeable future, in our view,” Barclays says. Peru is also set to make a rate decision today, and a hold is expected for its benchmark, at 4.25%.
Posted inDaily Brief
Comgas Pauses Infra Debentures
Brazil’s Comgas has asked regulators to pause the sale process for its BRL400m ($202m) domestic bond sale, it says. The sale – which includes a tranche qualifying for tax exemption under the infrastructure debenture law – had been planning to initiate the bookbuilding process this week. It does not give a reason for requesting the 60-day postponement. The gas distributor plans a 2020 tranche paying the DI plus up to 0.85% and amortizing in three parts during the final three years. A second 2018 inflation-linked bullet infrastructure debenture tranche pays a fixed rate equal to the NTN-B bond at the time of pricing plus up to 60bp. The transaction may be upsized by as much as BRL140m. Bradesco, BTG Pactual, JPMorgan and Itau are managing the sale, raising funds to repay debt. Cosan acquired 60% of the gas distributor last year for BRL3.4bn.
Posted inDaily Brief
Dominican Republic Sets Target
The Dominican Republic has indicated a 6.25%-area pricing target for a new 10-year amortizing bond, expected to price today, according to investors following the sale. The sovereign is heard shooting for a $1bn size, its limit under the country’s budget. The B1/B+/B issuer met buyers through Wednesday in the US and Europe, and is heard plotting a bond amortizing in equal installments in the final three years. It is expected to look to tighten today, with investors having indicated that the yield would need to remain above 6.0% to be attractive. A 10-year maturity was chosen over a possible 30-year. Citi and Deutsche Bank are managing the sale.