Real estate finance in Latin America is booming. Growth, economic stability and financial innovation are spurring investment in real estate development projects throughout Latin America. Mexico and Brazil are the leaders in a market that expands through most of Central and South America and into the Caribbean.
Category: Corporate & Sovereign Strategy
Posted inDaily Brief
Borhis Supply Seen Rising
The supply of borhis, Mexican MBS issued by Sofoles and banks, is set to grow sharply, Guillermo Babatz, CEO of SHF told Silas. “We believe that by 2009, securitization will be the main source of funds for the private lenders in Mexico,” said Babatz. Last year saw roughly $1bn and Babatz expects close to $2.5bn this year, around 30% of the bank and Sofol financing needs. One of the key issues holding the market back is slow turnaround time between loan origination and going to the ABS market. Babatz also highlighted the need for a more liquid secondary market.
Posted inWeb Articles
6th Annual Securitization in Latin America Summit (SiLAS 2007)
Securitization in Latin America is booming. Established sectors like consumer loans and Mexican mortgages continue to benefit from innovation and competitive pricing structures brought on by increased participation at all levels.
Posted inWeb Articles
The Latin American Borrowers’ and Investors’ Forum 2007
LABIF was conceived in 2005 as a joint initiative between Euromoney Conferences, LatinFinance, and the Inter-American Development Bank (IDB) as an annual pan-regional debt capital markets forum designed to drive forward the Latin American capital markets agenda and to serve as a meeting-ground, par excellence, for the region’s key market players, whether issuer, investor, or intermediary.
Posted inMagazine
Disciplined Ambition
Cemex has blazed a trail for Latin America. Lorenzo Zambrano, our CEO of the Year, wants to make it the most profitable integrated building materials firm in the world.
Posted inDaily Brief
IMSA In Talks With Ternium
IMSA, Mexico’s largest steel-maker, has announced it is in talks with Luxembourg-based Ternium, the largest steel-producer in the region, over a possible sale or strategic alliance. Ternium, which is owned by Argentina’s Techint, has been eying the Mexican business since last year, according to market reports. In a filing with the Mexican Stock Exchange, IMSA said it had also attracted interest from other companies in the sector as part of the trend of consolidation seen currently in the steel industry worldwide. Last October, the Canales Clariond family took control of IMSA after upping its stake to 86% when it paid just over $1 billion for a further 43% stake.
Posted inDaily Brief
Don’t Ignore Ecuador Default, Says AllianceBernstein
Investors should not ignore the threat of default in Ecuador, says James Barrineau, head of research at AllianceBernstein, which has $7.5bn in EM debt, speaking Thursday at an EMTA panel. Comparing the sell-side to “an abused spouse” after Ecuador unexpectedly paid a bond coupon in February, Barrineau warns that even if a May payment is made, the fundamentals are still deteriorating. “[President] Correa has stopped beating us and gave us flowers, so everything is fine with the situation now,” says Barrineau, lampooning the view being touted by sell-side analysts. Barrineau raises concerns about Petroecuador, the oil stabilization fund and says the incentives to default will grow through 2007. “It’s an absolute wild card and no one knows what these guys are going to do,” says Barrineau. He also raises the prospect of deterioration in Pemex seriously undermining Mexico’s credit rating. “The decline in production in Pemex has a very good chance of creating a real crisis in Mexico in a 24-30 month timeframe,” says Barrineau. “There, in the absence of an energy reform, is a place where you can buy protection awfully cheap,” he concludes.
Posted inDaily Brief
Arcelor Mittal, CVM Agree Terms
After protracted negotiations stretching over the best part of a year, leading steel group Arcelor Mittal has agreed terms with Brazilian securities regulator CVM for its buyout of local shareholders. The regulator announced earlier this year that the Luxembourg-based company had to raise its offer to minority shareholders in brazil in order to close its merger. Last year, Netherlands-based Mittal Steel bought steel company Arcelor Brasil as part of its takeover of rival Luxembourg-based steelmaker Arcelor in a deal worth $37.3 billion. Following the merger, the CVM ruled that Mittal had to offer to buy out minority shareholders of the Brazilian unit. The European company offered 33.3 reais per share, well below the 51 reais per share demanded by shareholders. CVM had initially demanded a price of 47.9 reais per share in February but later accepted an offer from Arcelor Mittal of 11.70 reais per share in cash and 0.3568 of its own A shares, in total worth 51.27 reais a share, according to the company.
Posted inWeb Articles
Brazil: Outperformance & New Asset Classes – The 5th Brazil Investment Forum
Brazil’s rapid economic growth and its associated financial innovation are generating a swathe of new assets both financial – derivatives, asset-backed securities – and real – commodities, bio-fuel and agribusiness. This in turn is supporting the growth of in number and type of domestic investors including the rapid growth of local hedge funds and private equity investment as well as the increased participation of the full array of international investors.
Posted inMagazine
Revamping Mexican Pensions
Afores need more options, says Oscar Medina Mora, CEO of Banamex Investment Management, Mexico’s largest pension fund, with $12.5 billion under management.