Panama’s BG Financial Group is planning to sell $250m in perpetual bonds to finance growth plans, according to a Dow Jones report, which cites a filing with the Panamanian Stock Exchange. The group’s banking subsidiary Banco General will issue the bonds on the local exchange this week, the report states. Proceeds will be used to fund the bank’s commercial, mortgage and consumer lending businesses in Panama and abroad, it adds.
Yearly Archives: 2008
Posted inDaily Brief
IDB Offers Mexico Housing Boost
The IDB has agreed provide $2.8bn in financing through three facilities to boost liquidity in the Mexican mortgage and housing sector, it says. It will provide a 10-year $2.5bn sovereign-guaranteed credit line to Sociedad Hipoteca Federal, the first disbursement of which will be a $500m 25-year loan paying a spread over Libor. In a separate, part of the package, the IDB will offer up to $150m equivalent in pesos to eligible Mexican mortgage lenders, following a similar $150m facility brought by the IFC in October. Through the facility, the IDB can provide mezzanine credit support via partial credit guarantees or purchases of mezzanine notes by way of a loan to a trust. It is also able to finance the purchase of up to 15% in RMBS though a loan to a trust, and provide an unsecured loan to a fund providing supporting lenders. Finally, the IDB will make available a $185m loan facility to state-backed lender Infonavit, to support mezzanine portions of its RMBS issuance. Both the $150m and $180m non-sovereign guaranteed loan facilities are available for 3 years, renewable for another 3.
Posted inDaily Brief
Cash-Rich Investors Wait to Pounce
When the dust settles from the global crisis and stability returns, investors say there will be attractive buying opportunities in LatAm for those with liquidity. “I would expect investor attention to return to emerging markets generally before too long,” says Allan Conway, head of EM equity at Schroders. “They have been inappropriately oversold. If you are prepared to take an 18-24 month view, prices will look very cheap over that timeframe,” adds the investor, whose fund has $12bn under management in EM. Richard Madigan, chief investment strategist and portfolio manager at JPMorgan Asset Management, finds valuations seen from September through November are technically driven rather than fundamental. “We’ve gone back to valuations of 5-10 years ago in certain markets, where I’d argue those markets are radically different in what we see in structural and policy reform,” he adds. Corporates are also likely to see buyers. “If you are in a situation where you can spend money, you can get the best companies anywhere on the yield curve you want at a very compelling price for the investor,” says Mike Gagliardi, portfolio manager at HSBC Halbis, which manages $4bn in EM. “Why go with a second or third-tier credit that yields 30%, when you can get a top-tier that yields 25%?” In the region’s past crises, Galgiardi finds LatAm lacked the policy discipline it now has. It may also present a better opportunity than other EM regions such as Eastern Europe, as its corporate names are more established. (For the complete buyside outlook, see the December issue of LatinFinance at www.latinfinance.com.)
Posted inMagazine
COMMENT: Buy Signals
As winter grips the northern hemisphere, the view from New York and London is decidedly glum. And while the sun rises in the south, the hangover in São Paulo, Lima and Santiago still throbs. But from the eerie calm engulfing Latin America going into 2009, regional prospects appear relatively sanguine, especially compared to the US funk.
Posted inMagazine
Bulge Bracket Cuts in Brazil
Credit Suisse has made substantial cuts to its Brazil team. Among those departing the investment banking group led by José Olympio are Rafael Pagano, head of Brazil ECM, Enrico Carbone, a director covering real estate and technology, and Marcio Guedes, who covered the consumer and agricultural sectors, say people close to the situation. Four others are heard to have been asked to leave the investment banking division, which was apparently staffed with 25-30 professionals in Brazil earlier this year.
Posted inMagazine
Who’s Up First?
As the dust begins to settle in Latin America’s debt markets and secondary prices begin to climb back up, a familiar mantra is heard – the market is open for good credits. The Catch-22 is that good credits do not need the funds.
Posted inMagazine
A Bounce to Recession
LatAm indices continue to wade through an unpleasant mix of high volatility and down-trending performance since their last big plunge in early October. Jumpy trading sessions dominate and lack of conviction and direction in the secondary puts all big decisions on ice.
Posted inMagazine
Brazil Banks Bulk up
Brazil’s banking hierarchy is upended by the Itaú-Unibanco merger and Banco do Brasil’s aggressive shopping spree. Underdog Bradesco evaluates its options.
Posted inMagazine
A Bridge Too Far?
Hefty government spending guarantees a solid pipeline
of infrastructure deals despite financial crisis and economic slump. Financing lags, but Banobras hopes to pick up slack.
Posted inMagazine
Last Nail in Coffin
Nationalization of the country’s private pension funds is the final nail in the coffin of Argentine capital markets. And efforts to normalize external creditor relations are stalled.