HSBC Argentina is planning to issue 177,228,000 new shares to raise $60 million thereby increasing the bank’s current capital stock from $379 million. The shares will consist of 85,533,941 class A shares worth one vote each and 90,694,059 class B shares worth five votes each.
Category: Daily Brief
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New President For Rosario Exchange
Accountant Jorge Weskamp has been elected the new president of the Rosario Stock Exchange in Argentina. He will take over the position from outgoing president Federico Boglione and will serve for two years.
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Petrobras Increases Bovespa Weighting
Brazil’s state-owned oil company Petroleo Brasileiro SA (Petrobras) has increased its weighting in the benchmark Bovespa index from 7.34% to 8.97% and is now only barely 1 percentage point off the index leader Tele Norte Leste Participações SA (Telemar), whose weighting dropped from 9.31% to 8.33%. The revised stock weightings were announced yesterday, Thursday, and will take effect on 2 January. The index is rebalanced every four months.
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Safra Leasing Completes Brazil’s Largest Debenture Offering
Brazilian Safra Leasing, part of local Banco Safra, has completed the country’s largest single debenture offering to date, issuing 5 billion reais ($2.26 billion) of long-term unsecured non-convertible bonds. The bonds, which mature in July 2015, carry an annual interest rate linked to the local interbank rate. The issue was coordinated by Banco Safra de Investimentos SA.
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Venezuela: Fourth Party Joins Election Boycott
Primero Justicia has become the fourth political party in Venezuela to boycott Sunday’s parliamentary elections. The parties, which also include Acción Democrática, COPEI and Proyecto Venezuela, are protesting against what they say are unfair electoral conditions. The ruling Movimiento V República party of President Hugo Chávez is seeking to increase its seats in Congress on 4 December.
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Brazil Trade Surplus Up
Brazil’s trade surplus was up $4.1 billion in November from $3.7 billion driven by an increase in exports of 9% and a slower import rise of 8%. This was the first increase in both exports and the trade surplus in three months.
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Colombian Colpatria Raises $47 Million
Colombian bank Colpatria has just raised $47 million through the sale of 3 billion shares, or 10% of the total stock, by its majority shareholder Inversiones Abacol. Part of the money raised will be used to settle a debt with Colombia’s deposit insurance agency Fogafin.
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Bolivian Exports Reach Record High
Despite the country’s political turmoil, Bolivian exports between January and October of this year reached a record high of $2.22 billion and are likely to hit $2.60 billion by year end. Last year exports totaled $2.18 billion. Export growth has been driven by sales of hydrocarbons, and agriculture and livestock which rose 51% and 32% respectively.
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Brazil Sells More Swaps Contracts
Brazil sold nearly all its currency swaps contracts in the latest of several such auctions this month. The central bank yesterday, Wednesday, sold 11,900 out of 12,400 reverse dollar currency swap contracts worth around $576 million. The contracts, which are linked to local interest rates allow investors to access Brazil’s high rates without having to buy local currency.
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Brazilian Economy Slows
Brazil’s economy has slowed for the first time in two years, contracting 1.2% in the third quarter compared with the second. Year on year, GDP grew by 1% in the third quarter compared with 4% y-o-y growth in the second quarter. Analysts think the slowing economic expansion may prompt larger interest rate cuts by the central bank. Brazil’s benchmark interest rate has been cut three times since September but remains at a high 18.5%.