Brazil’s Banco Cruzeiro do Sul is planning to price a dollar-denominated bond as soon as next week. The amount of the offering has not been set. UBS and BCP are managing the sale. In February the bank placed $100m in 2009 bonds at 7.5%, starting a parade of Brazilian mid-size banks coming to the international bond market to issue short dated year paper. BicBanco launched Monday the sale of $100m 2010 notes, and Brazil’s Banco Fibra priced a 6.75% $150m 2010 bond last week.
Yearly Archives: 2008
Posted inDaily Brief
Korea Development Bank Heard Seeking Pesos
The Korea Development Bank is heard considering a peso-denominated bond, according to a banker familiar with the issuer’s plans. In January fellow multilateral Export-Import Bank of Korea placed MXP1.2bn in 2013 bonds at TIIE + 30bp via Merrill Lynch. That transaction was the bank’s second in Mexico, as it looked to diversify its investor base.
Posted inDaily Brief
Consumer Loans Drive El Salvador Bank Expansion
El Salvador’s banking system grew at a moderate pace 2007 supported by an increase in consumer loans and mortgages, as well as faster commercial loan growth, says Fitch. Last year, total Salvadorian bank assets expanded by 11.4% in nominal terms while overall net profit declined by 12.4%, due to higher provisions, according to the agency. Fitch expects an anticipated decline in rates over the next few months may lead to further growth in the demand for personal loans. As a result, consumer loans and mortgages should continue to drive overall loan portfolio expansion and the arrival of well-established international banks should lead to better business practices throughout the system, the agency says.
Posted inDaily Brief
Brazil Should Not Tighten Monetary Policy: Moody’s
Brazil’s central bank will expected to meet today to decide what it will do with its benchmark interest rate, the Selic, which today stands at 11.25%. “Analysts, consulting firms and banks surveyed by the Brazilian central bank are certainly expecting an interest rate hike,” says Alfredo Coutino, an economist at Moody’s, tells LatinFinance. But Brazil would be committing an error if it raised the rate merely to accommodate pressure from financial markets, he adds. Incipient inflation is not a demand-driven problem and does not need to be addressed through monetary policy, he says. If Brazil’s authorities want to let the economy work without the monetary brake and defend itself from deceleration of the global economy, then the central bank should start to cut the rate soon, instead of increasing it, Coutino says.
Posted inDaily Brief
HSBC Mexico Taps Banorte’s Pena
Luis Pena, who stepped down Tuesday as CEO of Mexico’s Banorte, has been named CEO of HSBC Mexico. Pena replaces Paul Thurston, who will return in May to the UK to run retail and commercial operations. Thurston also served as co-head of LatAm with HSBC Brazil CEO Emilson Alonso, who will in May be promoted to sole head. Shaun Wallis will take over from Alonso as Brazil CEO.
Posted inDaily Brief
Chile’s Celfin Plots Regional Expansion
Chilean asset manager and investment boutique Celfin Capital plans to start operations in Peru this year and move into Colombia in 2009, the firm’s vice chairman Jorge Errazuriz tells LatinFinance. “We have to follow our clients. Many of our clients are investing in Peru and we are also working with the pension funds in Peru and have to provide them with products,” says Errazuriz. “We will officially open in June and are very close to obtaining our license for a stock exchange company, he says of Lima.” Besides the brokerage, Celfin wants to develop asset management, private banking, local research, M&A and capital markets in the Andean nation. “Peru is the China of Latin America, it’s growing at more than 10% a year,” says Errazuriz. “Peru will be a very growth market and we have to be there,” he adds. Errazuriz also predicts flow from Peru and Colombia to Chile, including M&A across all sectors. A Bogota office will follow Peru, which is this year’s focus for Celfin. Errazuriz is particularly interested in the opportunity in asset management, trading, brokerage and private banking. Celfin manages $5bn for institutions and private clients, and has channeled an extra $10bn in investment to the region. Speaking on the sidelines of this week’s World Economic Forum meeting in Cancun, Errazuriz is unfazed by the global economic crisis. “We’re growing,” says the banker. “The Chilean market this time is very strong.”
Posted inDaily Brief
Copasa Brings Back Secondary Equity
Brazil’s Companhia de Saneamento de Minas Gerais (Copasa) plans to sell 16.3m common shares in a secondary offer set to price next week. It expects to raise about BRL406m, based on a Monday closing price of BRL25.50. A reserve period runs through April 22. The water utility had announced the current offer in January, but postponed due to poor market conditions. The shares to be sold are held by the government of Minas Gerais state and the city government of Belo Horizonte. Citi and Banco do Brasil are managing.
Posted inDaily Brief
Banco de Bogota Upsizes COP Bonds
Colombia’s Banco de Bogota has priced COP223bn ($109.9m) in 2014 bonds, reflecting strong demand for what was set to be a COP200bn sale. A floating-rate tranche priced at 700bp over the IPC and another came at 300bp over Colombia’s benchmark DTF. A third tranche denominated in the UVR inflation-linked unit priced at a fixed 7%. Proceeds go towards the bank’s capital base. The transaction is rated AA+ by Duff & Phelps Colombia, and managed by Banco de Bogota’s own capital markets unit.
Posted inDaily Brief
Bancoldex Readies COP Bonds
Colombian state development bank Banco de Comercio Exterior de Colombia plans to sell COP200bn ($111m) in floating-rate bonds April 22. It intends to place COP1bn each in a 24-month tranche and a 36-month tranche, more if demand is high. Details on the spread over the DTF benchmark are expected Monday. Proceeds will add to the bank’s lending capabilities.
Posted inDaily Brief
Titulizadora Colombiana Set For Bond Sale
Colombian mortgage securitization company Titularizadora Colombiana is slated to sell COP207bn ($116m) RMBS today. The offer will include a COP148bn 2018 and COP42bn 2023 senior tranches, as well as COP17bn in subordinated notes. The 2018 senior tranche can have a coupon of up to 11.5%, and is rated AAA by Duff & Phelps. The bonds are backed by a portfolio of mortgage loans from lenders Banco Colpatria and Banco Davivienda. Bancolombia, Afin, Interbolsa, Corficolombiana, Banco de Bogota, Correval and Banco Davivienda are placing the notes.