Category: Argentina

Banco Patagonia of Argentina has placed a $4.62 million financial securitization. The issue has a hurdle rate of 11.6%. In the first half of the year, the bank led 10 non-synthetic securitization deals totaling around $109 million. The local market as a whole issued $1 billion worth of securities, the vast majority comprising the securitization of consumer credit, personal loans and credit cards receivables.

Argentina’s western province of Neuquén is planning to issue $250 million worth of bonds to fund much-needed infrastructure projects. The province’s governor, Jorge Sobisch, last week met with Argentina’s economy minister, Felisa Miceli, to discuss the offering. The funds raised will go towards several projects, notably the Mari Menuco Canal to provide irrigation for up to 30,000 hectares of land, the Tren Transandino del Sur to the border with Chile, a ring-road and several hospitals.

Argentina’s leading packaging manufacturer, Zucamor, has increased its stake in paper packaging firm Papel Misionero to take control of the Misiones-based manufacturer. Zucamor bought the 46.5% stake from BISA, owned by the Bemberg family, to increase its holding to 93%. The amount of the deal has not been publicly announced.

The Republic of Argentina has successfully sold the last tranche of its new Bonar V US dollar-denominated debt issue to yield 8.34%, below the 8.45% predicted by some analysts. The $500 million offering was five times oversubscribed. Although the yield paid is higher than the 8.09% paid in May, the spread over comparable US Treasuries was lower, at 309 basis points. The bond carries a coupon rate of 7% and matures in 2011. Argentina first sold Bonar V bonds on March 22, when it placed $500 million of the paper at a yield of 8.36%. On May 3 it sold a second tranche of $500 million.

Argentina’s Pan American Energy is planning to sell $250 million of five-year debt securities with an estimated yield of between 7.75% and 8.0%, lower than the country’s sovereign Bonar issue, sold yesterday, Wednesday. The bonds have been rated AAA by Standard & Poor’s. Pan American Energy is held jointly by British Petroleum (60%) and Bridas Corp (40%). It is the second-largest hydrocarbon producer in Argentina and a leading player in the Southern Cone. And with a 14% share of the gas market, it is also the second-largest gas producer in Argentina. The deal is being managed by JP Morgan and Citigroup.

Argentina’s economy ministry has approved the final $500 million tranche offering of the sovereign’s new dollar debt issue – Bonar V. The Republic sold the first $500 million tranche in March, which it sold to yield 8.36% and the second $500 million in May when it achieved a lower yield of 8.09%. The bonds mature in 2011 and carry a coupon rate of 7%. Argentina is facing debt payments of around $3 billion next month and recently announced a further sale of its US dollar debt Boden 2012 to Venezuela to raise $600 million.

Venezuela’s state-run oil company PDVSA, has signed an agreement with state-owned energy companies, Enersa of Argentina and Uruguay’s Ancap, to develop heavy crude in one of the fields in the Orinoco belt area of the country. The agreement to explore the Ayacucho Field, sealed last week at the Mercosur Summit in Argentina, leaves Venezuela with 51% control of the field. The development foresees investment of around $4 billion, of which Venezuela will contribute $2 billion, leaving Argentina and Uruguay to find the balance.

Argentina’s Productora Alimentaria, which produces the Naranpol brand juices and soda drinks, is planning to acquire the Argentine assets of beer-maker Brahma, owned by AmBev. AmBev is obliged to sell Brahma as a result of a court ruling by Argentina’s anti-monopoly board following its acquisition of local brewer Quilmes. However, the board ruled that the beer-maker could not be sold to a company with interests in the domestic beer market. Mexican bottler Femsa has also said it may offer for Brahma. Consulting firm Infupa is advising Productora Alimentaria on the purchase.

Venezuela made its debut appearance as a full Mercosur member Friday at the 30th summit of the trade bloc, held in Córdoba, Argentina. Regional energy integration was one of the much discussed topics, as was the proposed establishment of a regional development bank, the so-called Banco del Sur, which would be set up to fund infrastructure and development projects in the southern cone. Argentina’s president, Nestor Kirchner, urged Mercosur to consider opening up membership to Bolivia and Mexico, provoking criticism from some quarters that the regional trade bloc is becoming less about free trade and more about politics. The event was lent some added glamour by the visit of Cuba’s veteran leader, Fidel Castro, who kept his address to the delegates brief at three hours. He also took the opportunity to visit the childhood home of his former comrade in arms and iconic revolutionary, Ernesto “Che” Guevara.

After a slight slowdown in April, Argentina’s economic growth rate is accelerating once more, up 8% – year on year – in May, according to official figures. In April, the economy registered year-on-year growth of 6.3% after GDP expanded by 8.6% between January and March, compared with the same period in 2005.