America Latina Logistica (ALL) has wrapped up a BRL800m bond sale in Brazil’s domestic market, up from the BRL600m size it had originally indicated, according to the CVM. The freight transporter sold BRL539.2m in 2016 bonds which pay the DI rate plus 1.65%, and BRL270.8m in 2018 bonds that pay IPCA plus 8.49%, or the NTN-B government bond plus 1.76%. The pricing comes in below the respective DI plus 1.85% and NTN-B plus 1.85% price ceilings. The proceeds will be used to partially pay down debt coming due over the next 2 years. The issuance will also extend the company’s debt maturity schedule and fund its ongoing capital expenditures program. Itau, Santander and Votorantim managed the sale, rated A3/A minus on a national scale.
Category: Corporate & Sovereign Strategy
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Evolving Growth Play
As Brazil’s middle-income segment continues to grow, a straightforward equities buy has become trickier stock-picking terrain. Inflation and government policy are the biggest risks.
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Colombia Raises Rate
Colombia’s central bank has raised its rate by 25bp, to 3.75%, in line with the majority of analysts’ expectations. “The Bank had to make this increase with the rains still falling – after all they can always slowdown later on,” says Celfin. Some analysts had said a pause could have been possible. “A pause could be justified by the better than expected February and March CPI prints and recent improvement in inflation data,” says Goldman Sachs. RBC had said before the announcement that 100bp in hikes could take place before end of Q3 2011.
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In the Line of Fire
Transport, tourism and housing are just some of the sectors susceptible to Mexico’s deteriorating drug violence. Security costs are becoming a concern for Mexican companies.
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JPMorgan Appoints Brazil AM Head
Cassio Calil has been made appointed the president of asset management in Brazil in a newly created role. Calil will be based in Sao Paulo as of May 1 and will be responsible for increasing growth and coordinating the roll-out of new products. He will report to Claudio Berquo, senior country officer for Brazil, and Jamie Broderick, head of Europe and LatAm for asset management. Calil has been at JPMorgan since 2004 and was previously in the investment bank, where he was an MD in corporate finance advisory.
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Panama’s Growing Pains
Rapid growth is still predicted, but the country is encountering speed-bumps along its way. Maintaining fiscal discipline and inflationary pressures will be among the challenges.
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Slow Recovery
Most of the Caribbean is waiting for developed markets’ economies to improve, but high oil prices threaten the tourism-dependent and highly indebted region.
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Televisa Gets Aggressive
In the year through April 15, a total of 441 M&A deals have taken place in LatAm, up from 415 during the same period in 2010, according to Dealogic. However, […]
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Colombia Expected to Raise Rates
Colombia’s central bank is expected to raise rates 25bp, to 3.75% today. Citi cites significant rainfall earlier in the year as muddying the inflation outlook, with additional adverse weather in the future potentially worsening upside risk.
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LatAm Has Largest Outward FDI of 2010
LatAm and the Caribbean saw the largest increase in outward FDI flows in 2010, according to a report on investment trends by the United Nations Conference on Trade and Development. The main reason for this was an increase in cross-border M&A. The strong economic growth in the region has increased acquisitions by LatAm companies abroad, particularly in developed countries in which there were investment opportunities following the financial crisis. Brazil, Chile, Colombia and Mexico all registered increased outward FDI flows and cross-border M&A transactions, adds the report. The biggest jump was made by Brazil, where net FDI flows jumped to $11.5bn in 2010 from minus $10.0bn in 2009 due to a fivefold increase in the equity capital part of its outward investments. Overall, developing and transition economies’ share of global outflows increased to 28% in 2010, up from 15% in 2007, adds the report.