Brazilian authorities are likely to tighten monetary policy faster than expected to combat resurgent inflation, experts at LatinFinance’s Brazil Issuers and Investor Forum said Tuesday, on the eve of a central bank interest rate decision.
Category: Corporate & Sovereign Strategy
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Best Corporates in the Capital Markets Awards – Closing Soon
Voting on LatinFinance’s 2013 Best Corporates in the Capital Markets Awards closes on Friday. These awards celebrate the companies in Latin America and the Caribbean that have made the most impressive use of the debt and equity markets over the past 12 months. Market opinion is an important component in the three-part selection process, so be sure to have your say at https://www.research.net/s/LatinFinanceBestCorporates2013. Full details of the selection process can be found here: http://www.latinfinance.com/stub.aspx?Stubid=21779. The winners will be announced in LatinFinance’s July edition.
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Geo Faces Restructuring
Corporacion Geo is planning a debt restructuring, it says, faced with a heavy debt load and a difficult outlook for the Mexican homebuilding sector. It plans “a financial and operating analysis, with the Principal objective of generating efficiencies and reviewing alternatives to restructure its financial debt.” There were no specific details as to size or timing available. Fians Capital has been hired to advise. Geo had MXP14.80bn ($1.23bn) in total debt as of year-end, according to Moody’s data. S&P has lowered Geo to CCC+ from BB minus, and is keeping the builder on negative watch. Peer Urbi is also said to be looking at restructuring options.
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Actinver Hires DCM Head
Nathan Moussan is to join Mexico’s Actinver as head of debt capital markets, according to a source familiar with the move. The banker is to start Monday, joining from Santander Mexico’s domestic DCM team, where he had been since 2011. He was previously in a similar position at Scotiabank in Mexico.
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Lupatech Misses Payment
Lupatech has missed a $7m payment on its perpetual bonds, the Brazilian oil parts maker says. The company held a BRL700m ($354m) capitalization last year and continues to examine debt restructuring options, with Bank of America Merrill Lynch as advisor.
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Diniz Approved as BRF Chair
Abilio Diniz has been approved as chairman of Brasil Foods (BRF), BRF says. The businessman controversially remains on the board of retailer Grupo Pao de Acucar. French retailer Groupe Casino, which controls Pao de Acucar through holding company Wilkes, had ousted Diniz from Casino’s board last year. Diniz replaces the retiring Nildemar Secches as BRF’s chair.
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Ex-Hacienda Official Joins BlackRock
Gerardo Rodriguez, who left Mexico’s finance ministry last year, is set to join BlackRock as a managing director and member of the firm’s EM leadership team, the asset manager says. He will be based in New York starting April 22, reporting to Richard Kushel, head of strategic product management, and Patrick Olson, global head of strategy and planning. Rodriguez spent 14 years at the Hacienda, most recently as undersecretary of finance and public credit.
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Moody’s Cuts OGX
Moody’s has cut OGX’s ratings to B2 from B1, it says, citing production and liquidity concerns. The EBX group oil and gas company’s ratings are under review for further downgrade. The ratings move “reflects the concern over tightening liquidity over the next 12-18 months, with the expected need for OGX to pursue alternative liquidity options in order to build a healthy cash cushion through 2014,” Moody’s says. S&P lowered OGX last week, taking its credit rating to a B minus from B, citing poor production expectations and cash concerns. Meanwhile, OGX and its Eike Batista-controlled siblings received positive news from the government. Petrobras could make use of EBX’s and other private companies’ assets including ports, according to wire reports citing remarks from Petrobras CEO Maria das Gracas Foster.
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DCM Banker Returns to CS
Michael Cummings has rejoined Credit Suisse, where he becomes head of Latin America debt capital markets, according to a source familiar with the matter. The banker had left the Swiss shop last year to join UBS, working on debt and equity. Cummings fills the void left by former head Michael Schoen, who left CS late last year to join Scotia, along with Marc Chouchani. Cummings reports to global DCM head Thomas Mercein. His previous phase at CS lasted eight years.
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SulAmerica Names CEO
Brazilian insurer SulAmerica has named Gabriel Fagundes Filho as CEO, the company says. He previously served as vp of SulAmerica’s health and dental operation. He replaces Thomaz Cabral de Menezes, who had been in the role since 2010 and leaves to pursue personal projects.