NEW YORK - Bankers Trust New York Corp. has provided Peruvian government debt with a face value of $60 million to Spanish and Peruvian institutions for their acquisition of government-owned Banco Continental. The debt is eligible to be swapped for equity under the Peruvian government's privatization program.
The debt has been used in the $250 million acquisition of Banco Continental by Spain's Banco Bilbao Viscaya and Peru's Grupo Brescia. Banco Continental is the second largest bank in Peru, with assets of $1.5 billion, and is one of the largest Peruvian entities to be privatized.
"The transaction demonstrates Bankers Trust's ability to access the Latin American capital markets in a way that provides creative and highly efficient financing for its clients," said Alberto Franco, head of New York trading and worldwide risk management for Bankers Trust's Latin America merchant banking group.
"Bankers Trust is prepared to devote its merger and acquisition, trading, and financing capabilities in New York, Europe, and Peru toward being an important and helpful player in Peru's privatization program," said Raul Musso, head of Bankers Trust's operations in the South American nation.
He noted that Bankers Trust is the advisor to France's Lyonnaise des Eaux, a bidder for the privatization of Sedapal, the Peruvian water company.
Bankers Trust's business in Latin America includes local operations and investments in Argentina, Brazil, Chile, Colombia, Mexico, Peru, Puerto Rico, and Venezuela.