Panama has advanced in its path towards joining the Central American Bank for Economic Integration (Cabei) by becoming a “strategic partner” of the Bank. Panama is looking to access financing opportunities to help with projects such as the widening of the Canal, stimulating growth in sectors such as tourism and energy, and improving human resource skills. Panama will become a non-regional member of Cabei and non-founding beneficiary before the end of the year with a contribution of $58.6 million.
Category: Bonds
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Brazil Regulator Rules Against Mittal
Brazilian securities and exchange commission, CVM, has ruled that Netherlands-based Mittal Steel must offer to buy out minority shareholders of Brazilian steel company Arcelor, which Mittal bought as part of its merger with rival Luxembourg-based steelmaker Arcelor. The ruling could add up to $4 billion to the cost of the $38.3 billion merger, according to Mittal which appealed the decision on the basis that the merger is one of equals and not a takeover.
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Braskem To Issue $230 Million Debt
Brazilian Braskem, Latin America’s largest petrochemicals manufacturer, has filed with the country’s securities commission (CVM) to issue $229 million-worth of local debt securities. The debentures will carry maturity of five years. The money raised it to pay short-term maturing debt and strengthen the company’s cash flow. Braskem recently posted second-quarter losses of $25 million, against profits of $200 million for the same period last year. The company has struggled this year in the face of the rising cost of raw materials needed and cheap imports from Asia.
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CAF Agrees Colombia Loans
The Andean Development Corporation (CAF) has agreed to loans totaling $250 million to Colombia to strengthen its institutions and competitiveness. The first of two loans is for $150 million, to go to the Program of Reforms for Competitive Insertion in International Markets, which aims to improve the country’s competitive insertion, opening up and adapting the financial platform, and upgrading technology. The second loan, for $100 million, covers the Consolidation Program for Constitutional Reform in the area of pensions.
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CAF Takes Out Local-currency Loan
The Andean Development Corporation (CAF) has taken out a local-currency bank loan, the first time it has arranged such a credit with a Latin American bank. The soles-denominated loan, worth $15.5 million and taken out with Peru’s BBVA Banco Continental, is for the purpose of offering Peruvian micro-financial institutions a new source of local-currency financing. CAF usually raises financing by issuing securities or via a foreign-currency bank loan from an international bank.
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Autoban To Issue $233 Million Local Securities
São Paulo-based highway maintenance company Autoban has been granted approval by Brazil’s securities market regulator, CVM, to issue $233 million of local debt securities. Autoban is planning to issue three series of debentures, the first maturing 2014 with an interest rate of IGP-M plus 10.65%, the second maturing 2013 and carrying the same interest rate and the third maturing 2012 and with an interest rate of 3.3% above the interbank CDI rate.
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Ferrocarriles Suburbanos Gets Loan On Track
Ferrocarriles Suburbanos, a subsidiary of CAF Mexico, part of Spain’s Construccion y Auxiliar de Ferrocarriles (CAF), has succeeded in raising new financing to complete the first stretch of its Mexico City suburban train project. The company has closed a $271 million syndicated loan led by Banesto, Santander and Banobras. The total cost of the project is estimated to come in at $613 million.
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Banco Hipotecario To Buy Back Bonds In Default
Argentine Banco Hipotecario has made a tender offer to buy back 10 of its Series Notes of US dollar and euro-denominated debt that remained unrestructured after its debt swap program of two years ago. The Bank will pay 108% of the principal amount of the notes tendered but will not pay any additional accrued but unpaid interest or past due interest on the notes. The tender offer expires on July 31. Citigroup Global Markets is acting as the dealer manager for the offer.
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Colombia To Buy Back Local Paper
Colombia is to buy back up to $950 million worth of local-currency debt within the next 90 days. The move aims to reverse what the government describes as “inefficiencies in [the local] bond curve”. Colombia has increased the proportion of its peso-denominated debt to foreign-currency debt this year to protect against exchange rate fluctuations.
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CAF Approves $850 Mln in Loans to Venezuela
The Andean Finance Corporation (CAF) gave the go ahead to three loans to Venezuela totaling $850 million to finance housing and transportation programs and underwrite a $50 million bond offering from Electricidad de Caracas, a private utility. CAF also agreed to lend $60 million to Empresas Publicas de Medellin, which runs public services in the Colombian city of the same name.