May 01 2009
STRUCTURED FINANCE: The Pledge Edge
LatAm issuers in need of funds continue to strive to convince lenders, whether they be commercial banks or governments, to extend financing during periods of market stress by pledging assets.
Top rated banks in Brazil and Peru have been actively raising funds by posting their future flows and Cemex, the troubled Mexican industrial, is rumored to have mortgaged its stake in Grupo Cementos Chihuahua in exchange for a fast disbursing, short-term loan from the Mexican government.
As of mid-April, two energy companies were set to clinch a combined $340 million by pledging reserves as collateral, using what bankers say is a form of asset-based lending relatively novel to the region. Pacific Rubiales, a Canadian company with a high concentration of Colombian assets, is heard close to wrapping ...
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