Flows to EM bond funds were slightly negative for the week to March 2, compared to flows totaling $96m the previous week, according to EPFR Global. EM bond funds focused on Asia continue to outperform their EMEA and LatAm peers in attracting money, according to EPFR Global. Lipper data show that for the week ended March 3, EM debt funds were up 1%. Year-to-date they are up 0.15%. Meanwhile, global income funds are up 0.12% in the week and 0.86% ytd and international income funds are up 0.19% in the week and 0.99% ytd.
Category: Central America
Posted inDaily Brief
LatAm Equity Outflows Gain Steam
LatAm equity fund outflows gained steam for the week ended March 2, according to EPFR Global, losing $203m for the week. While this was an increase on the $179m of outflows during the previous week, it is an improvement from outflows of between $300m and $400m seen 3 to 4 weeks ago, according to analysts at EPFR. Brazil equity funds saw its seventh consecutive week of outflows, according to EPFR, losing $140m. All the BRIC countries are being impacted by higher food, energy and commodities prices, EPFR adds. However, Peru equity funds stood out among the LatAm countries with inflows of $18.5m, while Mexico also had inflows of $15m. With regard to performance, LatAm funds were up 3.72% for the week to March 3. They are down 2.98% year-to-date. Meanwhile, EM funds are up 3.75% in the week and down 2.67% ytd and global small and mid-cap funds are up 3.11% in the week and up 2.72% ytd.
Posted inDaily Brief
MENA Troubles May Firm LatAm Currencies
Currencies of LatAm countries with strong oil and gas industries could benefit from the turmoil in the Middle East and North Africa as Brent crude prices edge towards $120 per barrel. “We believe high oil prices will be particularly positive for the COP,” says Nomura, adding that the “BRL should be counted among the winners given the huge potential in oil production.” The MXP, meanwhile, “is likely to be a marginal winner,” Nomura says. However, if oil prices rise above $3.50 per gallon – the average now is $3.19 – the US economy may be hurt, affecting growth in some LatAm economies, Nomura explains. “On balance, in the case of an oil-shock-induced global recession, the CLP, MXP and PES are likely to be impacted more negatively than the BRL and COP.” In terms of exposure to a global slowdown, Nomura says Chile, where net imports of oil amount to 5.2% of GDP, seems particularly vulnerable as non-oil exports represent around 35% of GDP. Chile is followed by Mexico (25%), Peru (23%) and Argentina (18%). Brazil and Colombia appear less exposed to a significant deceleration in global growth, as non-oil exports represent less than 10% of their GDP.
Posted inDaily Brief
Deustche Appoints Regional LatAm Head
Deutsche has appointed Burkhard Ziegenhorn as GTB Regional Head of LatAm. The new role is an extension of his existing position as GTB Head Brazil and Head of TF-CMC LatAm. Ziegenhorn will remain in Sao Paulo and report to Jim Turley in his new role.
Posted inDaily Brief
CentAm, DomRep to Get $2bn from IDB
The IDB says it expects to disburse $2bn in financing for Central America and the Dominican Republic this year to invest in citizen security, infrastructure, social protection networks, natural disasters and climate change and public finances. This is slightly below the amount disbursed in 2010, which totaled $2.1bn, but is a 30% increase from 2009.
Posted inMagazine
BEST PROJECT FINANCING
In just three months of extremely choppy external markets, Project Jaguar scored a coup.
Posted inDaily Brief
Cabei Lands Swiss Debut
Cabei has raised CHF150m through its first bond sale in Swiss francs. Cabei priced the 2013 bond at 100.440 with a 2.250% coupon to yield 2.235%, or mid-swaps plus 150bp, tight to 155bp guidance. “Given the current market conditions, this was a successful transaction,” Felix Magana, treasurer of Cabei tells LatinFinance. He adds that this is consistent with the bank’s long-term strategy to diversify and grow its investor base. Credit Suisse managed the transaction, rated A minus/A2. Cabei will seek to issue before the end of the year in a Central American market, he says, but has not decided on which yet. Last month it raised CRC11bn ($21.6m) in 7-year bonds in Costa Rica’s local market. Cabei plans to return to Asia in the early part of next year, Magana says, likely revisiting one or more of the markets it has issued in previously, which include Japan, Hong Kong, Taiwan, Thailand and Singapore. It has been a tricky week for Latin issuers, with banks including Banco BVA and Bradesco postponing deals. The market was still waiting for word as to whether Andean multilateral CAF would proceed with a euro-denominated transaction.
Posted inDaily Brief
Chevron Selling CentAm Assets
Chevron is selling off its fuels marketing and aviation business in the Caribbean and several Central American countries, according to a company spokesman. The spokesman indentifies Nicaragua, Costa Rica and Belize as countries in which Chevron, through its Texaco label, would look to sell off businesses. The company is not soliciting bids for its operations in El Salvador, Honduras, Panama, Mexico, Brazil, Guatemala or Colombia, the spokesman says. Chevron regional manager Juan Habed was quoted in wires saying the company began negotiating with potential buyers in March, but has not reached any agreements.
Posted inDaily Brief
Honduras Gets Fiscal Reform Loan
Honduras will receive $45.8m from the IDB to support the country’s fiscal reforms, and improve its tax system and state utility revenues. The financing will consist of a $32.06m, 30-year loan with a 5.50-year grace period and a fixed income rate, and a $13.74m, 40-year loan with a 5.50-year grace period and an annual interest rate of 0.25%.The financing will be disbursed in 2 tranches of $22.9m. The first will come after the approval of a tax reform designed to increase collection rates, efficiency and equity in the tax system. The second tranche will come after the approval of other tax regulations. The country will also enact a law against tax evasion. In addition, the government will take steps to raise the revenues of the state-owned electricity company, Enee, and the telecommunications company, Hondutel.
Posted inMagazine
Best Investment Bank – Colombia
Leveraging deep and long-standing corporate relationships has been a successful strategy throughout the global financial crisis for Bancolombia.