Category: Chile

Ratings agency Moody’s Investors Service has raised Chile’s foreign currency debt rating two notches, from Baa1 to A2. The agency said that improvements in the country’s external debt levels prompted the decision. The revenues from the high price of copper have helped to ensure that this year Chile will, for the first time ever, become a net creditor – with net public debt accounting for around 2.5% of GDP. The spread of Chilean government bonds over US treasuries stands at 62 basis points.

Chile’s economy expanded faster than expected in May, growing 6.1% year on year. The increase took the accumulated growth figures to 4.8% for the year. May’s rate of expansion followed April’s growth of only 2.8%. Manufacturing and retail activity drove the rise, according to the Central Bank.

Chilean brokerage Corp Banca Corredores de Bolsa is to increase its share capital by around $7 million. The brokerage, which is a subsidiary of one of Chile’s largest private banks – Corp Banca, will seek approval from shareholders on July 20 to issue 86,566 new shares “to capitalize profits registered last year”, according to the company.

Chile and Panama Tuesday signed a free trade accord, ending a decade of negotiations. The agreement will take at least 10 years to fully open trade between the countries with Panama insisting on protection for farmers.

Chile and Panama are set to sign a free trade agreement Tuesday, following ten years of negotiations. The agreement includes protection for several Panamanian industries, including many agricultural products such as coffee, rice and sugar. It opens up 92.5 percent of the Chilean economy to Panamanian producers.

The Chilean government today raised its forecast for economic growth this year to 5.7 percent from 5.5 percent amid high copper prices. The world’s largest copper producer also increased its estimate of the average copper price to $2.40 per pound from $1.25 previously.

Suez Energy Andino, a subsidiary of France’s Suez, said it is looking to build a 400-megawatt generating plant in northern Chile aimed at supplying copper producer Codelco. The project would cost $450 million and include a terminal to offload fuel. The company has delivered an environmental impact study it hopes will allow the project to move ahead.

Chile’s Central Bank held its benchmark interest rate at 5% at its monthly meeting yesterday, Thursday. Recent figures show that Chile’s economic growth has weakened, prompting a hold on rates rather than an increase. The Bank last raised interest rates in April, when it put up the rate by 25 basis points from 4.75% to 5%.

Banco de Chile has issued $200 million of 10-year bonds. The bonds mature June 15 2016 and carry an interest rate of 6.285%. The issue was rated BBB+ by Moody’s Investors Service. The lead arranger was Deutsche Bank.

Campos Chilenos, the Chilean investment unit of UK company ED&F Man has announced it may sell up to 10% of local sugar producer Iansa. Campos Chilenos is Iansa’s largest shareholder, owning 45.13% of the company.