Between the Chilean asset and the undertaking close to Chancay, Volcan expects to lift greater than $200 million, Herrera stated in an interview on the sidelines of the FII Institute convention in Rio de Janeiro final week. The port lands for business and logistics tasks has quite a lot of worth for a developer, however “Volcan isn’t that developer,” he stated.
“We have to strengthen the capital construction of the agency since there are quite a lot of maturities coming due within the subsequent three years that require instant consideration,” Herrera stated. “We’re negotiating with our group of syndicate banks and bondholders which is advancing properly. We hope to supply updates quickly to the market. We’re very optimistic.”
The thought is to increase maturities with out imposing losses by way of a haircut, with the principle negotiation across the rate of interest, he stated. The corporate is hoping to safe help from at the very least 90% of bondholders and can want all the banks to again the plan.
“Probably earlier than the top of the summer season we’ll be capable of talk developments to the market,” Herrera stated.
Bond rally
Buyers have welcomed the gross sales amid rising confidence Volcan will be capable of meet its upcoming debt maturities. Lucror Analytics is now recommending that shoppers purchase bonds of Volcan maturing in 2026.
“We consider that the bonds will get better additional after the deliberate debt funds in June and August are made,” Lucror credit score analyst Josseline Jenssen wrote in a notice Monday, elevating her advice to purchase from maintain. She expects the refinancing course of to happen “quickly with out imposing losses on collectors.”
The bonds due 2026 gained 3.5 cents to commerce at 75.5 cents on the greenback on Monday, the best stage since July of 2023, in accordance with Hint knowledge. That’s up from as little as 61 cents proper after the deal was introduced. They’ve been aided by Integra’s pledge to honor obligations.
Integra, run by Jose Luis Manzano, an Argentine with pursuits in oil and fuel, mining and media, purchased management of Volcan from Glencore for $20 million, assuming its debt load within the course of. Internet debt stood at $711 million on the finish of the primary quarter.
Herrera beforehand labored at Glencore in Switzerland and oversaw the divestment of zinc tasks in South America together with Colombia, Bolivia and Argentina. The final undertaking to be bought was the Peruvian asset. He’s been Volcan CEO since November and left the worldwide commodity dealer final month after the deal was accomplished.
Past the asset gross sales, Volcan, which Herrera stated produces some 250,000 tons of zinc per 12 months, is planning to place a renewed deal with its core portfolio of transition metals to spice up output and effectivity, he stated.
(By Daniel Cancel)