Ecuador has signed a $43 million loan agreement with Andean Development Corporation (CAF) to finance the upgrading and improving of the Rafael Mendoza bridge in Guayaquil. The work will improve the only direct route between the city of Guayaquil and the rest of the country, through the Guayaquil–La Puntilla–Durán corridor. An initial loan of $57 million from CAF for the bridge has already been executed, taking the Corporation’s contribution of this stage of the project (estimated cost: $147.9 million) to almost 70%. The works are due to be completed by the end of the year.
Category: Bonds
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Brazilian Regulator Suspends Perdigão’s Global Offering
Brazilian securities regulator (CVM), Tuesday, suspended the October 19 global share offering of local food-processor Perdigão for 15 days. The Regulator said that one of the brokers acting for the company had broken the “quiet period” disclosure regulations. Perdigão, Brazil’s second-largest food processor, is planning a global issue of up to 32 million common shares, or 24% of its capital, in New York as ADRs and via Bovespa. Each ADR will represent two common shares. The offering, which is expected to raise up to $371 million, is being arranged by Credit Suisse and Itaú BBA. The sale will take the company’s free float from 43.8% to 46.6%.
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BBVA Bancomer To Launch $1.84 Billion Debt Program
BBVA Bancomer, the Mexican unit of Spanish banking giant BBVA, has registered with Mexico’s national banking and securities commission (CNBV) to issue up to $1.84 billion worth of local debt securities (20 billion pesos) in a program over the next two years. The nominal value and maturity of the debt securities will be determined for every issuance within the program. Casa de Bolsa BBVA Bancomer will act as placing agents. The bank has published a preliminary prospectus.
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New Auditor General For IDB
Alan Siegfried has succeeded Elizabeth J. Folsom to become the new auditor general for the Inter-American Development Bank (IDB). Siegfried, a US citizen, previously worked as an internal audit partner at Grant Thornton and Ernst & Young, and was regional director of Enterprise Risk Services at Deloitte & Touche. He will report to IDB president, Luis Alberto Moreno, and to the Bank’s Audit Committee.
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IDB Paves The Way In Panama
The Inter-American Development Bank (IDB) has granted a $70 million loan to Panama for the first phase of a program to improve the country’s road infrastructure and increase its competitiveness by cutting costs and travel time for passengers and cargo. The loan is for a 20-year term, with a six-year grace period and a variable interest rate. Panama will invest $35 million in the first phase of the program. The IDB may approve loans totaling $100 million for the following two phases, in which Panama would invest an additional $70 million. The program will be carried out within the framework of the Plan Puebla Panama regional integration effort.
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Ternium To Invest $1.4 Billion In Latin America
Luxembourg-based flat steelmaker Ternium, owned by Argentina’s Techint, is to invest $1.4 billion over the next three years in its Latin American operations. The company has steel operations in Argentina (Siderar), Mexico (Hylsamex) and Venezuela (Sidor) with a combined annual production capacity of 10.8 million tonnes. The company plans to increase capacity up to 12 million tonnes before 2009.
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BNDES To Issue Debentures
Brazil’s National Development Bank (BNDES) has filed with the country’s securities market regulator (CVM) to issue debentures via its investment unit BNDESPar. The Bank said it would issue at least $226 million worth of the local non-convertible bonds. The bonds will carry a maturity of six years and will pay an annual interest rate of IPCA plus 6%. In total, the Bank plans to issue $900 million worth of the paper over the next two years. This issuance would represent the first tranche in that program.
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Brazilian Regulator Turns Down Steel Appeal
Brazilian securities regulator (CVM) has turned down an appeal by Netherlands-based Mittal Steel and upheld a ruling that it 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 will add up to $4 billion to the cost of the $38.3 billion merger, according to Mittal which had appealed the decision last month on the basis that the merger is one of equals and not a takeover. The latest ruling is final unless Mittal and Arcelor Brasil appeal to Brazil’s federal court.
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Tenaris Agrees Sale Of 75% Dalmine Energie
Luxembourg-based Tenaris, the world’s largest steel tube producer, controlled by Argentina’s Techint, is to sell 75% of its stake in Italian energy provider Dalmine Energie to German energy sales company E.ON Sales and Trading for $50 million. Dalmine Energie is valued at $92 million. Dalmine Energie specializes in distributing electricity and natural gas to industrial and commercial clients in Italy.
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CAF Taps US Market For $200 Million
The Caracas-based Andean Development Corporation (CAF) tapped the US market for $250 million last week, increasing the issue up from an originally planned $200 million. The issue was twice oversubscribed. The bonds, which mature in 2017, offered a “highly competitive rate”, according to the Corporation and was bought by investors worldwide. The lead manager was Credit Suisse. Enrique García, president of CAF, commented that the issue was due to “the CAF’s permanent presence in the most demanding international scenarios” and was in line with the Corporation’s financial strategy “based on reducing costs and diversifying and broadening fund-raising sources on international financial markets”.