Citicorp Does 2 Latin Financings
NEW YORK - Citicorp said it has completed two financing transactions totaling $350 million for Latin America borrowers.
One deal was a $200 million issue of three-year, 10% fixed-rate notes for Brazil's Companhia Vale do Rio Doce that sold at a price to yield 11.45%. It was the first issue by CVRD since the Brazilian debt crisis began in 1982.
Hari Hariharan, division executive for international corporate finance at Citibank, said the success of the CVRD deal should set the stage for other issuers in Brazil.
The second financing was a $150 million medium-term Euronote program for Cemex SA. It was designed to refinance existing debt.
The Cemex notes came in three tranches, with the first yielding 10.625% over two years, the second yielding 10.875% over three years, and the third yielding 11.125% over four years.
The deal was listed in London and placed primarily in Europe and, via Securities and Exchange Commission Rule 144a, in the United States.
Investors in both issues included individuals and institutions, Citicorp said.