Jose da Costa Carvalho Neto has been appointed the new president of Eletrobras by Edison Lobao, minister of mines and energy on Monday, according to a statement on Eletrobras’ website. He replaces Jose Antonio Muniz Lopes and will take on the role in about two weeks, says an Eletrobras spokesperson. Jose da Costa Carvalho Neto has previously been president and director of the power plants of Minas Gerais and deputy head of Minas General.
Category: Corporate & Sovereign Strategy
Posted inDaily Brief
BTG Taps Veteran EM Syndicate Banker
BTG Pactual has appointed Cindy Powell head of fixed income syndicate, effective yesterday. Powell has been out of the market since late 2008, when she left JPMorgan in a round of job cuts focused on investment banking. She was an MD and head of LatAm syndicate at JPMorgan, which she joined from Chase after the merger in 2001. Powell was popular with investors and issuers and is expected to be a significant addition to the BTG debt team. BTG last year poached LatAm DCM specialist Sandy Severino from Citi. The firm is expected to lean heavily on Brazil coverage, but it is also expanding elsewhere in LatAm. It has played a lead role in recent bond deals for GVO, Petrobras and BR Malls.
Posted inDaily Brief
Moody’s Chops Su Casita ABS
Moody’s has downgraded a Hipotecaria Su Casita construction loan securitization to B3/Ba3.mx from B1/Baa1.mx, and withdrawn the B1 underlying rating. The move comes after the Ambac financial guarantee on the senior certificates was canceled. The downgrade reflects the credit deterioration of the portfolio, says Moody’s. The ratings action also reflects concerns about the mortgage provider’s stability as a servicer of debt, as a result of the recent downgrade of the company’s issuer rating.
Posted inDaily Brief
Panamericano on Watch Positive
Fitch revised its rating watch on Panamericano to positive from negative, following the announcement of the sale of a controlling stake in the Brazilian lender by Silvio Santos Group to BTG Pactual. The revision reflects potential support of BTG. Fitch says it expects Panamericano’s ratings to climb several notches once the deal goes through, though it will likely not match those of BTG or Caixa, its other controlling shareholders.
Posted inDaily Brief
Fitch Upgrades Codelco
Fitch has upgraded the ratings of Chilean state-owned copper miner Codelco to A+ from A. The upgrade follows recent upgrades of the sovereign’s ratings to A+ from A, Fitch says. Fitch estimates Codelco’s 2010 Ebitda in the region of $7.0bn compared to $5.5bn in 2009, with the company’s cash flow from operations at around $4.3bn in 2010 compared to $3.0bn in 2009.
Posted inDaily Brief
Tecnisa Gets BRL414m Follow-on
Brazil´s Tecnisa has raised BRL414m in an equity follow-on, according to the CVM. The real estate developer priced 41.4m shares at BRL10, representing a 0.01% discount (BRL0.10) to the previous BRL10.10 closing price. The total includes the exercise of a 15% greenshoe on top of a 36m share base deal. Shares closed down at BRL9.70 Wednesday. Tecnisa sold the shares in order to increase its liquidity and raise funds for growth, following a trend for many in the real estate sector. It plans to spend half of the proceeds on land acquisition, 35% on construction costs, 10% on debt repayments and 5% on working capital, it says. BTG Pactual, Credit Suisse, Itau and Santander managed the sale. Real estate shop Brasil Brokers is scheduled for a follow-on today, through Credit Suisse, Morgan Stanley and HSBC. The 21.8m share base deal would raise BRL176.8m if done at Wednesday’s BRL8.11 closing price.
Posted inDaily Brief
BTG IPO in 1-2 Years: Esteves
BTG Pactual, fresh from acquiring Brazil’s Panamericano, may look to go public in 1-2 years, the firm’s CEO Andre Esteves tells LatinFinance. “Not soon, because we have plenty of capital, but I would say that we are planning it. It’s something for the next maybe 1 or 2 years,” Esteves says in an exclusive interview. The firm had reportedly been planning to float last year, but it instead went to the private market. In December, it issued $1.8bn in new shares to a consortium including Asian and Middle East sovereign wealth funds. Esteves is bullish on the outlook for his independent investment bank and asset management firm. He anticipates a 50% rise in net income this year, from about $750m in 2010. This is driven by growth in the capital base. Esteves notes that BTG has almost $5bn of Tier 1 capital. In asset management, BTG manages about $50bn and Esteves predicts this will grow by 30% in 2011. BTG’s BRL1.2bn infrastructure fund is divesting assets and Esteves says he is considering opening a new one of similar size. Separately, BTG is heard raising a $1bn private equity fund for Brazil and fundraising is said to be close to wrapping up. Among BTG’s priorities are stabilizing Panamericano and developing the partnership with Caixa that arises from its purchase. “Our intention there is to develop an SME business that they already have but we think we can grow even further,” Esteves says of Panamericano. He adds that despite recent mismanagement, the bank’s reputation has not suffered. “They have a real franchise in terms of consumer finance,” says the banker. BTG also wants to expand IB operations throughout LatAm and grow its global EM-focused asset management business. Meanwhile, a New York-based investment banker away from the deal says BTG Pactual has agreed to acquire a stake in Casa&Video, a home furnishing and appliance retailer. BTG declines to comment on the deal, but Esteves says the bank is “always open to doing acquisitions in Brazil.”
Posted inDaily Brief
JBS Replaces CEO
JBS has replaced its CEO, Joesley Batista, with his brother, Wesley Batista, according to a company press release. The Brazilian beef producer recently failed in its attempt to acquire the meat assets of Sara Lee in the US. Wesley has been CEO of JBS USA for the last 4 years, focusing on restructuring, expansion and integration of the North American and Australian assets. Joesley will remain as chairman. JBS closed up 1.11% at BRL6.37 Tuesday.
Posted inDaily Brief
Usiminas Selling Ternium Stake
Brazilian steelmaker Usiminas will sell up to its entire 14.25% stake in national competitor Ternium, the company says. Ternium and it’s controlling shareholder, Techint, have together agreed to acquire a combined $250m worth of shares in the company.
Posted inDaily Brief
Vitro Says No Bankruptcy
Mexican glassmaker Vitro has ruled out the possibility of going bankrupt, its CEO reportedly says at a press conference in Mexico. A Vitro spokesman confirms the remarks. The firm intends to stick to a plan to issue $850m in new bonds, plus $100m cash, which could be swapped for a 15% stake in the company if it fails to meet its debt repayments in the next 5 years. The firm’s restructuring plans have met opposition from bondholders, and it is appealing a Mexican judge’s rejection of its restructuring proposal. Rothschild is Vitro’s financial advisor.