The Bovespa wants to attract more business from non-Brazilian issuers, Gilberto Mifano, the exchange’s CEO, tells LatinFinance. The exchange, which this year went public in a blowout IPO, is planning a more proactive approach and will visit other LatAm markets, says Mifano. He adds that the process will be transparent and in collaboration with exchanges and regulators. “This is not going to be an imperialist process to steal away market share,” says the official. Bovespa attractions that the exchange will look to highlight include access to international investors and better liquidity. “Foreigners are very comfortable buying into Brazilian companies on the Novo Mercado,” says Mifano. He notes that offshore investors purchase 70%-80% of new issues on the Bovespa.
Category: Corporate & Sovereign Strategy
Bovespa to Ramp up BDR Program
The Bovespa wants to attract more business from non-Brazilian issuers, Gilberto Mifano, the exchange’s CEO, tells LatinFinance. The exchange, which this year went public in a blowout IPO, is planning a more proactive approach and will visit other LatAm markets, says Mifano. He adds that the process will be transparent and in collaboration with exchanges and regulators. “This is not going to be an imperialist process to steal away market share,” says the official. Bovespa attractions that the exchange will look to highlight include access to international investors and better liquidity. “Foreigners are very comfortable buying into Brazilian companies on the Novo Mercado,” says Mifano. He notes that offshore investors purchase 70%-80% of new issues on the Bovespa.
Bovespa Says No BM&F Merger Talks (1)
Latin America’s two biggest exchanges – the Bovespa and the BM&F – are not discussing a merger, according to Bovespa CEO Gilberto Mifano. “There are no plans or proposals for anything yet,” Mifano tells LatinFinance, adding that the two sides have not held any talks recently. Bovespa and BM&F were recently rumored to be considering joining forces in the wake of successful IPOs. Prior to both exchanges’ demutualization, talk of a merger was also circulating, but the two ended up choosing to pursue shareholder restructurings and IPOs independently, says Mifano. If set up properly, a union between the two could make sense, notes Mifano, pointing to cases such as the Deutsche Bourse and exchanges in Hong Kong, Australia and Singapore, which integrated their various platforms successfully. The Bovespa went public October 24 via Goldman and Credit Suisse. The BM&F priced its offering November 28 via Morgan Stanley, Bradesco, JPMorgan, Merrill Lynch, Itau BBA, Deutsche Bank and Citi.
Bovespa Says No BM&F Merger Talks
Latin America’s two biggest exchanges – the Bovespa and the BM&F – are not discussing a merger, according to Bovespa CEO Gilberto Mifano. “There are no plans or proposals for anything yet,” Mifano tells LatinFinance, adding that the two sides have not held any talks recently. Bovespa and BM&F were recently rumored to be considering joining forces in the wake of successful IPOs. Prior to both exchanges’ demutualization, talk of a merger was also circulating, but the two ended up choosing to pursue shareholder restructurings and IPOs independently, says Mifano. If set up properly, a union between the two could make sense, notes Mifano, pointing to cases such as the Deutsche Bourse and exchanges in Hong Kong, Australia and Singapore, which integrated their various platforms successfully. The Bovespa went public October 24 via Goldman and Credit Suisse. The BM&F priced its offering November 28 via Morgan Stanley, Bradesco, JPMorgan, Merrill Lynch, Itau BBA, Deutsche Bank and Citi.
The IDB Breakfast Meeting 2008
The highlight of the Breakfast will be a stimulating panel discussion which will bring together some of the emerging markets most influential and distinguished leaders for a lively debate on the “Political and Economic Challenges Facing Latin America Today”. As in all our Breakfast meetings, we will encourage participation from you and your fellow guests.
The First Annual Colombian Investment Forum
Colombia faces a rare opportunity to secure the high and sustainable economic growth expected from one of the most up and coming vibrant emerging market econo LatinFinance presents the first Annual Colombian Investment Forum a gathering of those public and private sector leaders, both international and regional, whose decisions shape the present and future of the Colombian economy.
CVM Approves Cemig Debenture Sale
Brazil’s CVM has approved a BRL400m debenture issue from power distributor Cemig Distribuicao. The 2017 debentures are priced at 7.96% over the DI rate. Proceeds from the A+ (bra)-rated offering repay debt. Banco do Brasil managed the sale.
Chile Surprises with Rate Hike
Chile raised rates unexpectedly last week by 25bp to 6%, against the consensus forecast of no change in the rate. “The policy statement was balanced; without pre-committing to further rate increases, it definitely leaves the door open for further hikes if forthcoming data releases so warrant,” says Goldman Sachs. “We believe there is a good chance that will be the case.” The shop adds that a move to 6.5% is possible in the first quarter. Meanwhile, in line with consensus forecasts, Colombia kept its policy rate unchanged at 9.50%.
Bancaribe Slips to B
Fitch has cut downgraded Banco del Caribe’s (Bancaribe) long-term issuer default rating to B (negative) from B+ to reflect a fall in capitalization after strong growth in the last 18 months. “Profitability levels are undermined by fierce competition and a complex array of controls imposed by the government that limits the bank’s ability to manage its business, a situation that affects the rest of the system as well,” says Fitch. “Also, the ratings still incorporate its strong competitive position in the middle market, improved asset quality and adequate income diversification,” it adds. Bancaribe is a medium-sized bank with a 3.3% market share in terms of invested funds (assets plus investment funds) as of June. As of end-2006, 51.1% of Bancaribe was controlled by the Dao family and 26.6% was held by Scotia International, a wholly owned subsidiary of Scotiabank, with the remainder publicly held.
Nicaragua Hopes to Attract FDI
Even though foreign investors got almost nothing back from Nicaragua’s restructuring, the government is hopeful they will return to invest in the small Central American economy. “The clearing of Nicaragua’s external commercial debt arrears will create additional momentum to attract foreign direct investment and new trade partners in key sectors such as energy, tourism and the free trade zones,” says the Nicaraguan public credit department. The stock of debt eligible for the workout consisted of external commercial debt arrears, 95% held by financial institutions, most of which were grouped under the Nicaragua International Creditors Association, led by Hans Humes, president of US-based hedge fund Greylock. All litigating creditors who had won judgments against Nicaragua agreed last year to become members of the association to facilitate dialogue with the sovereign. All of them accepted a cash offer price of 4.5% of their debt. A second closing is expected in Q1 2008 to secure further debt relief from additional commercial suppliers who are still finalizing tenders. Nicaragua says the restructuring will cut the public external debt to GDP ratio to approximately 57%, versus 161% in December 2003.