Gerardo Rodriguez has been promoted to deputy finance minister at Mexico’s hacienda, and will be replaced as public credit director by Alejandro Diaz de Leon. Both changes were the result of Jose Antonio Meade moving to energy secretary from deputy finance minister. Meanwhile, Carlos Montano was named deputy finance minister for spending, replacing Dionisio Perez-Jacome, who was appointed as communications and transport minister. “I think both [the Rodriguez and Diaz] choices will be well-received by the markets,” says Benito Berber, strategist at Nomura. He adds that both are considered knowledgeable and have an excellent rapport with investors. In his previous position with the central bank, Berber explains, Diaz de Leon used to meet with investors, and understands the market. Diaz de Leon had been an executive with the PensionISSSTE pension fund. He previously also held various economic and financial analysis positions at Mexico’s central bank. Rodriguez served as director of public credit since 2004, and recently oversaw Mexico’s return to the yen markets and issuance of the region’s first sovereign 100-year bond. “Rodriguez is well known by the market and is recognized for having done an excellent job as a public debt manager and for having executed several shrewd and innovative debt liability management operations that contributed to reduce the vulnerability of public debt to exchange rate and interest rate swings,” says Goldman Sachs.
Yearly Archives: 2011
Rating Analyst Jumps to Buyside
Sebastian Hofmeister has joined ING Investment Management in the Netherlands, after leaving Moody’s in Mexico in late November. He had been with the ratings agency since 2001, and spent the last 5 years in Mexico City analyzing LatAm corporate credit. Hofmeister started at ING last week, as part of a team analyzing European high-yield credits.
Citi Hires Banobras Chief
Alonso Garcia Tames is joining Citi’s global banking LatAm group as a managing director. He will have a specific focus on public sector clients and infrastructure opportunities in the region excluding Mexico. Garcia will report to Zubaid Ahmad, Jay Collins and Eduardo Cruz, according to an internal memo seen by LatinFinance. Garcia had been CEO of Banobras since 2006. Before that, he was undersecretary of finance at Hacienda after working as head of public credit from 2000-2003.
Morgan Stanley Appoints LatAm Head
Morgan Stanley has given oversight for LatAm to Paul Taubman, co-president of the bank’s institutional securities group. In a memo, Morgan Stanley CEO James Gorman calls LatAm “one of our fastest growing regions.” Taubman will be based in New York and also have responsibility for Japan. His promotion comes as part of a push by Morgan Stanley to expand the international franchise. “We need to focus on our opportunity for significant global growth in the years ahead,” says Gorman.
Santander to Sell Piece of Chile Unit
Santander plans to sell up to 3.60bn shares in Santander Chile, or about $310m, it says in a regulatory filing. The shares will be sold by Teatinos Siglo XXI Inversiones, one of 2 holding vehicles through which Santander controls the Chilean unit. The sale is consistent with the Spanish bank’s long-term aim to reduce its holding in the Chile unit to about 75%, says a bank spokesman. Santander currently holds 76.9%, with 41.5% through Teatinos and 35.5% through Santander Chile Holding. The sale of the shares is likely to be conducted over time as interest arises, the spokesman says. No outside banks have been hired in connection with it. Santander’s Chile shares closed Monday at CLP40.91.
BAML Poaches DB Mexico Head
Bank of America Merrill Lynch (BAML) has hired Tito Vidaurri from Deutsche Bank to lead its Mexico business following the upcoming retirement of Orlando Loera. Based in Mexico City, Vidaurri will report directly to Andrea Orcel, executive chairman of global banking and markets. “Mexico is one of the most important countries in our LatAm footprint,” says Orcel. Vidaurri will also join the EM (ex-Asia) executive committee, of which Orcel is president. Vidaurri is due to join BAML in April. He was chief country officer, chairman of the board and CEO of Deutsche’s Mexican commercial banking and brokerage businesses, a position he held for over 4 years. Prior to Deutsche, Vidaurri was Morgan Stanley’s head of north LatAm investment banking. Loera was at BAML for 36 years.
Vitro to Appeal Concurso Rejection
A Mexican court has rejected Vitro’s filing for bankruptcy and restructuring, the glassmaker says, adding that it plans to appeal the decision. Vitro says it will contest the court’s decision and “continue its efforts” to restructure $1.2bn in debt. Vitro filed in December for the concurso mercantil bankruptcy process in Mexico and was also planning to begin Chapter 15 proceedings in the US and seek creditor protection for its US units. It had offered cash and new bonds to holders of $1.2bn in bond in an exchange that was to be the centerpiece of the restructuring. Rothschild is Vitro’s financial advisor in the process.
HudBay Pays Up for Norsemont
Canadian miner HudBay Minerals says it has agreed to acquire peer Norsemont Mining in a deal worth CAD520m in stock and cash. Norsemeont’s main asset is the Constancia copper and gold project in Peru. Equity analysts who cover HudBay say the price tag is not cheap. “It’s pricey,” says a Canada-based analyst. “If I were an investor, I would sell my shares.” In Toronto, Norsemont’s shares closed Monday at CAD4.47 per share, up 4.68%, while HudBay’s finished at CAD16.19, down 3.40%. Another analyst agrees, saying the deal “is not a home run.” He also explains that the Constancia project is “an OK project, but not a winner as it introduces more risk to HudBay, especially as regards to copper prices.” The analyst says that while cash costs for the mine are slightly under $1.00 per pound of copper, copper prices are not expected to remain at the current high price of around $4.00 per pound for long. “A pound of copper is likely to average around $2.00-$2.40 per pound over the next 30 years,” he adds. HudBay says its future combined copper production is expected to grow by around 145% between 2011 and 2016, as a result of bringing Constancia into full production. Constancia will also contribute to HudBay’s gold output. As part of the deal, holders of Norsemont shares will have the ability to elect, on an individual basis, to receive 0.2617 HudBay Shares and CAD0.001 in cash, CAD4.50 in cash, or a combination of cash and HudBay shares, subject to proration necessary to effect maximum aggregate cash consideration of CAD130m. RBC Capital Markets is advising HudBay while corporate finance firm Cutfield Freeman is advising Norsemont, the buyer says.
Banco Pine Readies Loan Securitization
Banco Pine is preparing a BRL207m loan securitization in Brazil’s local market, using the FIDC structure, according to regulatory documents. The 4.5-year FIDC is expected to pay interest at the DI rate plus 2.0%, and will be backed by various types of credit originated by the mid-sized lender. BTG Pactual is managing the deal, rated AA+ on a national scale.
BNDES Signs Rio Financing Agreement
BNDES agreed to a BRL1.2bn financing package with the Rio de Janeiro municipality, the development bank says. The agreement will help support the deployment of a Bus Rapid Transit system linking Galleon International Airport with Barra da Tijuca. The funding is one of several designed to help prepare the city for the 2014 World Cup and 2016 Olympics.