LatAm Loans

Standard & Poor’s this week gave Belgian-Brazilian brewer InBev a BBB+ rating, boosting its chances of successfully syndicating its $45bn deal.

That BG Group looks set to raise all its $14bn acquisition loan with just a one year maturity (plus a one year extension option) shows just how much in favour short term debt is in the loan market. Anxious banks do not want to bind themselves for too long to pricing that may become uneconomic if their own spreads widen again. Fortunately, what is good for the banks can occasionally be good for borrowers too.

Two of the year’s biggest European investment grade loans were formally launched into the market yesterday (Thursday) after bank meetings were held for InBev and BG Group’s facilities.

The Western European syndicated loan market is set for a frantic July as jumbo deals for Belgian-Brazilian brewer InBev and BG Group, the UK gas supplier, hit the market. InBev’s $45bn loan will be launched next week, while BG Group is set to launch a roughly $14bn facility today (Friday), EuroWeek understands.

Belgian-Brazilian brewer InBev’s jumbo acquisition deal is set to total $45bn, according to a banker close to the deal.

BELGIAN BREWER InBev has mandated eight banks to arrange a syndicated loan of at least $40bn to back its unsolicited bid for US peer Anheuser-Busch, made on Wednesday night.