Newly elected presidents have taken on the leadership of three of the region’s economies. They all must confront important fiscal, institutional, and infrastructure hurdles.
Category: Central America
Posted inMagazine
Bank of the Year, Central America: Grupo BAC Credomatic
As trade between Central American countries picks up, one bank is poised to take advantage of the growth
Posted inWeb Articles
Bancolombia, Banco de Bogotá eye market opportunities, say CEOs
Amid an acquisition spree, Colombian banks consider debt, equity, and further M&A
Posted inDaily Brief
CentAm Exporters Sign Loan
Nicaragua and Honduras-based coffee distribution subsidiaries of Agro International have signed a $130m, 2-year term loan, according to people familiar with the matter. The uncommitted facility pays interest at the agent’s cost of funds plus a spread that was not disclosed, and is guaranteed by Agro International, a British Virgin Islands-based agricultural holdco. Societe Generale is the lead arranger and bookrunner, with ABN Amro, BNP Paribas and Macquarie as MLAs and Towerbank International a participant.
Posted inMagazine
Colombia’s banks: Foreign affairs
Colombia’s largest financial institutions are on an acquisition spree in Central America. With tough regulations at home, the diversification is welcome
Posted inDaily Brief
Ambev Sees Caribbean, CentAm M&A Opportunities
Companhia de Bebidas das Americas (AmBev) sees potential for further acquisitions in Central America and the Caribbean, following a purchase of a stake in the Dominican Republic’s leading beer brand earlier this year. CFO Nelson Jose Jamel tells LatinFinance that the company believes there are growth prospects both in its home market, as well as in other parts of Latin America. “We do see opportunities moving forward not only to continue growing in Brazil – our home market with 70% of our results and a growing industry with a lot of opportunities – but we also see opportunities to continue growing abroad. The opportunities are more limited today, but particularly in Central America and the Caribbean we think there are a lot of opportunities for future acquisitions,” he says. As the company eyes acquisitions it is also looking at increasing its capex spending in Brazil to accommodate growth, particularly the north and the northeast regions. Ambev’s capex is set to triple this year from its pre-crisis spending in that area. Yet the drinks producer is unlikely to look at the debt markets to finance that, as it has strong free cash flows, Jamel says. Capex this year is expected to come to around BRL3.0bn ($1.40bn), a record for the company, up from BRL2.1bn last year and BRL1.0bn in 2008. In April, AmBev agreed to spend $1.24bn to acquire a 51% position in Cerveceria Nacional Dominicana (CND), and the AB InBev parent was able to negotiate through regulatory challenges to seal a $20bn deal for the remaining 50% of Mexico’s Grupo Modelo.
Posted inDaily Brief
CentAm Bottler Retaps Tightened Bond
The Central American Bottling Corporation (Cabcorp) has reopened its 2022 bond for $100m, taking advantage of strong secondary performance during the last 14 months to bring the total oustanding to $300m. The Guatemala-based anchor bottler for Pepsi in Central America reopened the 6.75%-coupon bond at 109.147 to yield 4.875%, at the tight end of 5%-area guidance. Citi was sole lead on the Ba2/BB+ transaction. The retap level represents a strong tightening from the 7.0% yield achieved the original deal in February 2012. Last year’s sale represented Cabcorp’s debut, and was upsized to $200m from $150m after getting 10x demand.
Posted inDaily Brief
Cabei Plots MXP Transaction
The Central American Bank for Economic Integration (Cabei) is looking to sell bonds denominated in Mexican pesos, its treasurer Jose Magana tells LatinFinance. The bank sees current swaps as very attractive, and while it doesn’t need funding in MXP, a transaction would represent an opportunistic trade. Size has yet to be determined, but a 5-year, 7-year or 10-year transaction in floating or fixed-rate bonds is being considered. The well-traveled borrower is considering issuance in a range of currencies and markets this year, as it plans to raise $800m in the markets this year. The bank is also mulling a Taiwanese dollar or offshore renminbi issuance in Taiwan. Last month it raised CNH500m ($80m) in its first-ever offshore renminbi bond deal, pricing at par with a 3.20% coupon.
Posted inDaily Brief
Cabei Visits Asia
The Central American Bank for Economic Integration (Cabei) is currently visiting accounts in Asia on a non-deal roadshow, as it explores options in the offshore Chinese renminbi (RMB), or Dim Sum bond market, according to a source following the sale. The Central American development bank is in Singapore and Hong Kong with Standard Chartered. Cabei Treasurer Jose Felix Magana told LatinFinance last year that the development bank would consider a RMB300m-RMB500m ($48m-$80m) transaction with a 3-year or 5-year tenor in what would be its debut in the market. It sought to issue in the offshore RMB market a few years ago, but held back as it wanted to first see improvements in swap rates. Cabei has looked at America Movil’s and Korea Development Bank’s RMB-denominated transactions as two interesting reference points for exploring the market. Cabei’s most recent bond was a CHF150m ($164m) 2020 last month, its first deal in Switzerland since 2010. The bond priced at 100.198 with a 1.50% coupon to yield 1.47%, or mid-swaps plus 80bp. UBS managed the deal, rated A/A2.
Posted inDaily Brief
Puma Syndicated Loan Crosses Finish
Puma Energy, a subsidiary of commodity trader Trafigura, has closed a $300m, 7-year syndicated loan, it says. The company declines to comment on the Libor-based interest rate or give additional details. The transaction was originally expected at $330m, but was reduced because the company didn’t need the extra $30m, according to a person familiar with the deal, who notes it was syndicated to a group of local and regional banks. The proceeds will be used to pay for the acquisition of gas stations and storage facilities in Central America and the Caribbean from Exxon completed earlier this year. Citi led the deal. It had originally been expected to close in September, with slowdowns heard because of the documentation necessary in multiple jurisdictions.