A growing list of LatAm banks are heading to the syndicated
loan market to diversify funding sources, amid growing investor
appetite for their paper.
Some $1.5 billion is now being negotiated, with Itau
preparing the largest loan, at $750m.
Among syndicated loans currently in process are Banco
Internacional del Peru (Interbank), which held a bank meeting
Tuesday, Peruvian development bank Cofide, which met lenders in
New York and Taipei starting last week.
Panama's Banco General is heard with commitments due at the
end of the month. In Brazil, Banco Daycoval is working on an AB
loan with participation from the IFC, and Itau is also moving
toward a close, with commitments heard already due following
bank meetings in New York, London and Taipei.
The institutions will use the funds to refinance and in
other cases for general corporate purposes before they need to
put the money to work.
The flurry of deals offers renewed hope for a market which
had seen volumes plummet in the wake of the global financial
crisis, and which has since struggled to return to pre-crisis
levels. LatAm borrowers have by and large shunned loans in
favor of bonds for medium term financing, in part because of
Amid rising interest from Asian investors, issuers have
started to do double launches in New York and then in Asia, say
market sources. Smaller ticket sizes are becoming more common,
in an effort to bring in those investors in Asia that will only
take on $5m-$10m tickets, for example.
Banks are choosing to syndicate smaller deals in the
marketplace, which they could do as club deals, in what many
see as taking advantage of an opportunity to grow bank
relationships via wider syndication. Corporate players,
meanwhile, are favoring club deals over term loans at present,
add market players.
In terms of diversity, Middle Eastern appetite in the space
is growing, with banks such as National Bank of Abu Dhabi,
which is heard on both Itau and Interbank, eager to put
liquidity to work.
For more information about the syndicated loan market, see
the LatinFinance Daily
A-B Nears Close
Loan Details Emerge