Brazil sold $800 million of fixed-rate bonds, known as LTNs, in an auction Tuesday. Yields on benchmark eight-month fixed-rate bills jumped to 18.94 from 18.66 percent last week. Brazil’s currency, foreign bonds and stocks have tumbled over the past four days amid speculation that corruption allegations have hurt President Luiz Inacio Lula da Silva´s chances in next year´s presidential election.
Category: Bonds
Posted inDaily Brief
CAF Backs Infrastructure in Colombia
The Andean Development Corp. says it will lend Colombia $150 million to partially finance the government’s Regional Highway and Infrastructure Development Plan this year. CAF, a development agency owned by five Andean countries, plans to lend Colombia $900 million this year.
Posted inDaily Brief
Google Buys Akwan
Internet search engine giant Google acquired Akwan Information Technologies, based in Brazil´s southeastern of Minas Gerias. Akwan will now be Google´s research and development center in Latin America. Google has similar centers in Tokyo, Zurich, Bangalore, New York and Mountain View, California.
Posted inDaily Brief
Pemex’s Bonds Rise
Bonds of Petroleos Mexicanos, Mexico’s state oil monopoly, rose after Congress approved legislation cutting the company’s taxes. The reduction takes effect January 1 and may reduce Pemex’s tax burden by as much as $2.3 billion in 2006, according to Finance Ministry estimates. Pemex paid about $42 billion in taxes last year, or 61 percent of revenue. The yield on Pemex’s dollar-denominated bond due in 2035 fell to 6.81 percent, the lowest level since June 8 while its price rose .75 cents on the dollar to 97.65. Pemex will add about $2.5 billion in new debt this year to keep up with its $12 billion investment plan.
Posted inDaily Brief
CAF Issues Samurai Bonds
The Andean Development Corporation (known as CAF in its Spanish initials) issued two sets of Samurai bonds worth $184 million. $138 million worth of three-year bonds are set to yield 6.96 percent at par, while $46 million worth of seven-year bonds will yield 15.72 percent. The sale was managed by Mizuho Securities and Nomura Securities. CAF’s principal shareholders are Venezuela, Colombia, Ecuador, Peru and Bolivia.
Posted inDaily Brief
CAFTA Moves Forward
The Central American Free Trade Agreement (CAFTA) passed 25-16 in the influential Ways and Means Committee in the US congress. The bill now passes to the White House for review before going back to Congress for a final vote. CAFTA has become an explosive political issue in the US with Democratic leaders arguing it will cost jobs and will worsen the country’s already giant current account deficit. President Bush argues it will help US exporters and promises to sign it.
Posted inDaily Brief
Techint to Buy Hylsamex
Argentine steel maker Techint announced plans to buy Mexico’s third largest steel company Hylsamex for $2.25 billion. Grupo Alfa, which holds a 43 percent stake in Hylsamex, has already agreed to sell its stake. Techint is looking to create a new company that will include Hylsamex, Argentine steel maker Siderar and Venezuelan iron and steel group Siderurgica del Orinoco (Sidor).
Posted inDaily Brief
CAFTA Promoted
The Bush administration is pushing Congress to pass the US-Central American Free Trade Agreement (CAFTA), arguing the pact is necessary to ensure economic growth, freedom and democracy in Central America. The presidents of the Dominican Republic, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua were in Washington Wednesday and also encouraged Congressional leaders to ratify the agreement. CAFTA faces stiff resistance from US textile manufacturers and the country’s sugar industry.
Posted inDaily Brief
Bush Pushes CAFTA
US President George W. Bush urged congress to approve a free trade agreement with Central America (known as CAFTA) to help bolster US exports. Central America is the US’s 13th-largest export market, bigger than Russia, India and Indonesia combined, and the US is the biggest buyer of Central American products. Goods worth about $33 billion are expected to be traded between the US and Central America this year.