Banco de Bogotá has spent the last year rolling out a variety of new products and services in Colombia as it pursues a universal bank strategy, while also making moves cross-border.
Category: Central America
Posted inMagazine
Best Bank – Guatemala
With economic growth returning to Guatemala after a relatively shallow crisis, its banks can return to plans being made prior to 2008.
Posted inMagazine
Central America: New Hopes for Integration
Crime and political rifts continue to block progress towards unity in Central America. Strides towards forging critical mass have been made, but full integration is lagging.
Posted inDaily Brief
EPM Buys Guatemala’s EEGSA
Guatemalan distribution utility EEGSA has been acquired by Empresas Publicas de Medellin (EPM) for $605m in cash, plus assumption of existing debt. EEGSA had been owned by TECO Guatemala, Iberdrola and Energias de Portugal, which combined had an 80.9% interest in the company. “Today’s announcement allows TECO Guatemala to continue our focus on generating reliable electricity for the residents of Guatemala through our 2 remaining power generation assets,” says TECO Guatemala president Phil Barringer. Citi advised TECO.
Posted inDaily Brief
IFC Guarantees Honduran Loan
The IFC is guaranteeing 36% of a subnational loan for Honduras’ central district municipality for $44m equivalent in local currency. This is the first time that the IFC has guaranteed a loan in Honduras not backed by the sovereign, says Javier Atala, general manager and executive vice president of Banco Financiera Comercial Hondurena (Ficohsa), lead arranger on the loan. The loan has an 8-year term and pays 16%, he tells LatinFinance.. Besides Ficohsa, others participating in the syndication are Banco Atlantida and Banco de Occidente. Out of the 16% interest rate, he says the banks syndicating the loan will divide 14% in equal parts and the IFC will get the remainder as commission. Ficohsa is lending $14.7m equivalent, Occidente $13.2m and Atlantida $13.2m, Atala says. The loan will be used to repair roads and implement an early flood warning system in the district, which includes Tegucigalpa.
Posted inDaily Brief
CABEI to Increase LatAm Funding
CABEI will look to increase the percentage of funds which come from LatAm capital markets from the current 10%-17% to 25%-30% over the next 4 years. “LatAm markets have become more of a priority as they know us better and are able to appreciate our credit profile, which is something we expect to translate into being able to issue at more attractive spreads,” Jose Felix Magana, treasurer of CABEI tells LatinFinance on the sidelines of the IMF annual meeting. Colombia, Mexico, Dominican Republic, Costa Rica, Guatemala, El Salvador and Honduras are markets CABEI would look to return to in order to issue bonds. It will also issue CP in new markets, such as Venezuela, Peru and Chile, adds Magana. CABEI needs to raise $750m in and will consider issuing bonds with maturities of 10 years or between 3 and 5 years. The first LatAm market it would look to issue in is Colombia, where it would look to issue between $150m and $250m worth of bonds, though he says maturity and timing is yet to be decided. Magana adds that either late this year or early next year CABEI is looking to issue up to 4bn Thai baht, as swap levels in Thailand and other Asian markets are attractive, Magana says. CABEI could also issue paper for between $150m and $250m in Europe, he adds.
Posted inMagazine
EXCLUSIVE: Panama’s Motta Eyes Home Potential
In a rare interview, Panamanian mogul Stanley Motta weighs his country’s potential for growth in infrastructure and capital markets. He does not rule out M&A for Copa.
Posted inDaily Brief
Nestle Shops in Guatemala
Swiss food giant Nestle has agreed to acquire a majority stake in Guatemalan food company Malher. A spokesman for the companies declines to reveal the transaction value and the size of the stake being acquired. “The 2 companies competed in the same market and will now join forces,” he explains. The spokesman adds that Nestle will be able to benefit from Malher’s extensive distribution chain, which reaches other Central American markets, the Caribbean and North America. Malher, best known for its Malher, Yus and Toki powder-based drinks, was established over 50 years ago and employs about 1,300. The spokesman says there were no financial advisors involved. Nestle has had a presence in CentAm for the past 70 years.
Posted inDaily Brief
IMF Praises Guatemala Economy
The IMF says it has concluded the third review of Guatemala’s economic performance under a program supported by an 18-month stand-by arrangement (SBA) approved in April. The SBA amount is $927.2m. With the completion of this review, about $865.4m is available for drawing. “Performance under the program has been strong. All end-December 2009 and end-March 2010 quantitative performance criteria were met comfortably, and inflation stayed within the inner consultation band agreed in the program. The 18-month SBA with the fund is expected to remain precautionary,” the IMF says.
Posted inDaily Brief
Moody’s Upgrades Nicaragua
Moody’s has upgraded Nicaragua to B3 (stable) from Caa1. The agency cites improvements in the country’s main debt metrics as a result of international debt forgiveness. Nicaragua’s debt to GDP fell from over 130% in 2003 to an estimated 45% this year. However, Moody’s also says that Nicaragua’s low economic development remains a key long-term ratings constraint and that subdued long-term growth prospects and institutional concerns also constrain ratings.