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.
Category: Bonds
Posted inDaily Brief
CVRD To Buy Back Shares
Brazilian Companhia Vale do Rio Doce (CVRD), the world’s largest iron-ore producer, is to buy back 47.9 million of its preferred shares, representing about 5% of its stock in circulation. CVRD said its decision to launch the buyback program was prompted by the recent share price performance and difference between its common and preferred share prices. Meanwhile, the company managed to stare down Chinese steelmakers to agree a 19% price increase for iron ore following tough negotiations.
Posted inDaily Brief
Brazilian Government to Buy Back More Bonds
The Brazilian government plans to buy back foreign currency bonds it considers the market is valuing too cheaply. Treasury officials are eyeing bonds maturing in 2020 and 2030 because yields on these issues are higher than other outstanding debt, distorting the sovereign yield curve.
Posted inDaily Brief
Submarino To Buy Back Shares
Brazilian internet retailer Submarino is to buy back up to 10% of its stock, comprising around 5.13 million shares. The shares closed the day Tuesday at $15.36. The buyback is being coordinated by Credit Suisse, Banco Santander, Banco Itaú and Banco Pactual.
Posted inDaily Brief
CAF Keeps Them Coming
Andean Development Corporation (CAF), the Caracas-based regional multilateral financial institution, is to follow up its landmark local-currency issue in Peru last month with an offering in Venezuelan bolivares. The Corporation is looking to place $100 million worth of local-currency bonds in Venezuela on June 13. The bolivar-denominated debt would be the first such paper to be issued by a multilateral in Venezuela. The five-year floating-rate bonds are expected to yield around 7%. Last month CAF successfully placed $75 million worth of 12-year local-currency bonds in Peru, the Corporation’s first bond issue in new soles and the largest such offering by a non-government issuer in the local market.
Posted inDaily Brief
Panama To Buy Back Bradies
Panama is to buy back all its outstanding Brady bonds next month, taking advantage of a call option on July 17. The $352 million bonds in circulation comprise four series. Panama is following a now, well-trodden path in the region to improve its debt profile. Earlier this year Brazil announced its multi-billion dollar Brady buyback plan; Venezuela was due to buy back $3.9 billion of Bradies by the end of last month and Colombia announced it would spend $4.3 billion on repurchasing the paper this year.
Posted inDaily Brief
Ecuador To Buy Back Outstanding 2012s
Ecuador is to buy back its outstanding 2012 bonds by January, ahead of the new government assuming power. There are currently $510 million of the 2012 bonds, the sovereign’s most expensive debt, in circulation. Last month the government bought back $740 million of the 12% bonds to save an estimated $20 million a year in debt payments. Ecuador is likely to tap the international bond market later this year; the government has been authorized to issue up to $900 million of new debt.
Posted inMagazine
Venezuelan Vital Stats
CAF’s $100 million bolivar bond issue in Venezuela brings some much-needed variety to local investors, and hopefully some vitality for the long-stale market as well.
Posted inDaily Brief
CAF Signs $80 Million Panama Loan
The Caracas-based Andean Development Bank (CAF) has signed at $80 million loan to Panama to be directed at improving and upgrading highways within the country, including the interoceanic route that runs parallel to the canal. Panama is contributing $45 million to the project.
Posted inDaily Brief
Guatemala Delays CAFTA Implementation
The implementation of Guatemala’s free trade agreement with the US (CAFTA), which should have come into effect on May 1, has been delayed due to a lack of consensus in Congress. Guatemala’s president, Oscar Berger, a champion of the agreement, has called the delay a “tragedy.”