LatinFinance - September/October 2015 - 13

NEWS
LOANS

Infrastructure borrowers continue to secure funding for energyrelated projects, while large corporate borrowers are making
noise in an otherwise quiet market. By Jennifer P. Roig

Minimalist approach
Latin America's loan market is
shaping up for a quieter year
than 2014. Dealogic figures
indicate 81 deals amounting to
close to $34 billion were signed
up to August 28, compared to
171 deals worth more than $54
billion over the same period
last year.
Sources put the waning
supply down to the high
uncertainty over a US Federal
Reserve rate hike, record-low
commodity prices, weak
national currencies and
volatility in China.
Nonetheless, large,
investment-grade coporates are
accessing funding at favorable
prices. Brazilian builders
Votorantim Cimentos and
Votorantim Industrial each
completed five-year revolving
credit facilities in July, for $700
million and $500 million,
respectively. Bookrunners BNP
Paribas, Natixis, Scotiabank
and Sumitomo Mitsui Banking
Corporation set the price at 85
basis points over Libor, tied to
a ratings grid, for both of the
facilities, and drew in a further
10 banks for syndication.
In late August, Mexican
energy company IENova
wrapped-up a five-year, $400
million club loan at 90 basis
points over Libor with four
lenders.
Also in Mexico, real estate
vehicle Fibra Uno closed
a dual-currency revolving
credit facility, with a fiveyear tenor. The transaction
comprised $360 million and

7 billion peso ($430 million)
tranches, adding an accordion
feature which allows for an
up to 50% increase in the
borrowing. Bank of AmericaMerrill Lynch, BBVA, Credit
Suisse, Goldman Sachs, HSBC,
Itaú and Santander were
lenders.
Cemex and Grupo
Cementos de Chihuahua
(GCC) completed refinancings.
Cemex agreed to a $1.94 billion
loan with 17 banks, pushing
out the average life of the debt
to four years. GCC's five-year
syndicated credit facility
for $194 million was led by
bookrunners BBVA, Citi and
Scotiabank, who brought in a
further seven lenders.
Eyes are now on the
Brazilian lender Banco Safra,
which is in the market for
a three-year, $200 million
syndicated term loan. Bank
of America-Merrill Lynch,
Commerzbank and Mizuho
have the mandate for the
deal. Given the complicated
situation in Brazil including a
recent sovereign downgrade,
financiers are carefully
following the evolution of this
transaction.

Project finance rolls on
In the infrastructure space,
Gasoducto Sur Peruano
remains the largest deal
moving through the market.
The consortium formed by
Odebrecht Latinvest and
Enagás is negotiating a $4.125
billion seven-year syndicated

Loans rank by volume, year to August 28
European lenders dominate
Rank
1
2
3
4
5
6
7
8
9
10

Bookrunner
BNP Paribas
BBVA
Santander
Citi
SMBC
Crédit Agricole
Natixis
HSBC
JPMorgan
Mizuho
Total

Value ($m)
3,175
3,039
2,588
2,066
1,776
1,578
1,530
1,363
1,259
1,132

# Deals
12
10
7
11
6
6
8
7
6
5

33,987

Source: Dealogic

non-recourse loan with 14
bookrunners and mandated
lead arrangers, plus up to
10 second-tier participants
(see page 30 for more on this
transaction).
In Mexico, a Carso
Energy-led consortium
developing two natural gas
pipelines between Texas and
Mexico has mandated BBVA,
Mizuho, MUFG and SMBC to
lead a $1.2 billion financing.
Mexico's Comisión Federal
de Electricidad awarded the
Waha-Presidio pipeline and the

For daily updates on
loans market, visit:
latinfinance.com

Waha-San Elizario pipeline
to the consortium in January.
Also in Mexico, Fermaca signed
a 3.5-year, mini-perm loan for
around $600 million with a club
of six banks to finance a 262-mile
natural gas pipeline.
In Chile, Pattern
Development closed a 16.5year, $192.4 million financing
for its Conejo Solar power plant.
Crédit Agricole, Société Générale
and SMBC were mandated lead
arrangers and joint bookrunners,
while Santander provided a VAT
facility. LF

For daily updates and full details on
Latin America's loan and project finance
markets, see www.latinfinance.com/
DailyBrief
September/October 2015 - L ATINFINA NCE.COM 13

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Table of Contents for the Digital Edition of LatinFinance - September/October 2015