Fonplata bolsters loan book and talks bond sales

Fonplata bolsters loan book and talks bond sales

Capital Markets Fixed Income People Bolivia

Fondo Financiero para el Desarollo de la Cuenca del Plata (Fonplata) is in talks with fellow development agencies such as France's AFD and the IDB for more than $120m in loan contracts this year.

"This year we will be closing contracts for over $120m," Fonplata CEO Juan Notaro told LatinFinance.

The development bank has roughly $400m of projects in its pipeline for this year, comprising initiatives in road infrastructure, sanitation projects, rural electricity and bridges, Notaro added.

In a bid to diversify, Fonplata has also allocated proceeds towards projects for social impact, such as urban development, job generation and climate change awareness.

"As an example, we financed urbanization of low income neighborhoods around Bolivia, emphasizing the use of intensive labor to generate employment," Notaro said.

In Brazil, the bank has set sights on drainage systems and bicycle routes, while in Argentina and Uruguay, Fonplata is helping fund access to ports and associated infrastructure. Finally in Paraguay, the focus remains on roads, bridges and the development of small- and medium-sized farming initiatives among others.

Back in October 2016, Fonplata received a first-time credit rating from Moody's and S&P Global Ratings. The former rated it A2, while S&P scored Fonplata A-, and Notaro said since then, the bank's rating has been ratified twice in the past year.

"The rating has been ratified, keeping Fonplata's credit rating above all of our member countries, with all the benefits that such status implies," he added. Fonplata's member countries currently comprise Argentina, Bolivia, Brazil, Paraguay and Uruguay.

As previously reported by LatinFinance, Notaro has sights on a possible bond sale in Paraguay. He also said the bank was exploring its first bond emission outside the region in 2019.