Citi has confirmed it has hired Andre Kok as managing director and head of global banking for Brazil. Kok will report to Eduardo Cruz, global banking head for LatAm, and Gustavo Marin, CEO for Citi Brazil and South Cone. Kok will be based in Sao Paulo and be responsible for corporate and investment banking in Brazil. Previously, Kok stepped down as head of investment banking at Itau last August. Kok had been with Itau for more than 5 years, after joining from UBS in 2005. He had been rumored to be considering a return to the Swiss bank.
Category: Corporate & Sovereign Strategy
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Gruma Names CFO
Gruma has named Alejandro Barrientos as CFO, it says, replacing Raul Alonso Pelaez, who had been promoted to CEO of the Mexican tortilla maker in December. Barrientos joins from Credit Agricole, where he was a banker and executive in various positions. Gruma has been working its way back from a 2009 debt restructuring, most recently raising MXP9.23bn from the sale of its 8.8% stale in Banorte.
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Harneys Appoints First Brazil Representative
Harneys, the offshore law firm, has appointed Maria Pia Buchi as its first permanent representative in Brazil, it said in a release. Buchi will head business development in Brazil and will be based in Sao Paulo and Rio de Janeiro. Buchi was previously in-house counsel at Triscorp Investimentos and Opus Gestao de Recursos.
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Hike Expected for Chile Rate
Market consensus points to Chile’s central bank tightening its rate by 25bp, bringing it to 3.75% today. “Though the minutes from the February meeting – in addition to recent comments by central bank officials – suggest rising concerns about the inflation outlook, the central bank seems committed to continuing its tightening cycle at a gradual pace, most likely in 25bp increments,” says Morgan Stanley. “At this stage we assess a 20% probability of a 50bp rate hike (down from a probability of 35% due to the high uncertainty around the outlook for the global and Japanese economy following the recent devastating developments),” according to Goldman Sachs.
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DomRep Power Could Suffer Oil Shock
The Dominican Republic’s power generation sector is highly exposed to rising oil prices, according to Fitch. The vast majority of the country’s power, 82% of installed generation, comes from fuel oil and natural gas-fired thermoelectric plants, it says. That makes it the most highly exposed country in the CentAm and Caribbean. El Salvador comes in second place, as nearly 70% of power generation comes from fossil fuels, Fitch says. Less exposed to rising energy prices are Costa Rica, where 72% of power comes from renewable resources, and Panama, where 50% of total capacity is provided by hydroelectric sources. On average, the power generation system in CentAm generates more than half (54%) of its electricity is generated by thermoelectric sources, says Fitch. This exposure could translate into higher expenses this year. “Prices could briefly surpass $140 per barrel within the next 3 months,” Bank of America Merrill Lynch says. It expects the price of oil to average $108 per barrel for the year.
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Edesur Names CEO
Argentine electric distributor Edesur has named Antonio Jerez as CEO, it says. Jerez had been director of distribution at one of the Spanish units of Edesur’s parent Endesa. Jose Maria Hidalgo had been occupying the CEO role, and is set to become chairman of Edesur, pending shareholder approval. Hidalgo is a former CEO of Endesa Argentina.
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Frontera Leaves Barclays
Jaime Frontera has left as head of LatAm loans syndication at Barclays Capital. He is heard to be joining Credit Agricole’s syndicated loans team. Credit Agricole in September 2010 lost Rodrigo Gracia, who left his role as VP in the syndicated loans team to join the syndicated loans team at JPMorgan.
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Oi Sees Ratings Upgrade from Fitch
Oi saw its rating raised to BBB from BBB minus by Fitch, with its outlook revised to stable from positive. The upgrade reflects the progress Oi has made toward a long-term target of net debt-to-Ebitda of 1.7x.
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China Increasing Ties to CentAm
CentAm government are seeing increased economic and commercial ties to China following improved diplomatic relations which are beginning to bear fruit. Costa Rica boasts a $100m new arena deemed a “gift” from the Chinese government since the two countries established diplomatic relations in 2007. The world’s second largest economy is beginning to make its way into El Salvador, Guatemala, Honduras, Nicaragua and Panama as well. In October, El Salvador hosted its first-ever Chinese business symposium in San Salvador, with 52 Chinese companies and 150 local firms attending. “We hope that this event represents the beginning of a much improved commercial relationship between El Salvador and the Republic of China,” says Manuel Flores, president of the Salvadorian Friendship Association with China. “We consume infinite amounts of Chinese products, while they know very little about ours. We hope to begin to change that,” he adds. Meanwhile, in September China’s state-owned energy company Sinohydro signed an “understanding agreement” with the government of Honduras to manage and operate construction of 3 hydroelectric plants in western Honduras known as Patuca I, II and III.
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Localiza Roadshows as Fully Investment Grade
Moody’s has lifted Localiza’s ratings to Baa3 from Ba1, it says, moving it out of split-rated territory ahead of a possible new international bond sale. The Baa3/BBB minus Brazilian car rental agency is meeting US and European investors through Tuesday, ahead of a possible USD or global BRL issue. BAML, Bradesco, Citi and Itau are managing. Though an experienced domestic market issuer, Localiza’s last cross-border bond was a $100m 8-year sold in 1997, according to Dealogic. The Moody’s outlook is stable.