Category: Chile

London-based sugar broker ED&F Man is looking to buy 45% of Chile’s major agro-industrial group and largest sugar-producer – Empresas Iansa. ED&F Man plans to take up an option to buy the remaining 51% stake in Inversiones Greenfields, currently owned by Spain’s Ebro Puleva, for $12 million. Greenfields controls 51% of Campos Chilenos, which in turn owns 45% of Iansa.

Earnings for Chile’s banking sector for the first half of 2005 rose 9.5% year-on-year to $1 billion. Banco Santander Chile, the country’s largest financial institution, recorded income of $300 million for the period.

Following a year of negotiations, Chile expects to sign a trade agreement with China in November which it hopes will make the Latin American country a bridge for Chinese trade in the region. Chile currently has trade agreements in Asia with Singapore, Brunei and South Korea and is working on one with Japan.

Chile’s Codelco, the world’s largest copper producer, sold $500 million 30-year bonds on Friday, the longest ever maturity on its debt. The company sold the 5.625% bonds due in 2035 to yield 5.75%, 1.18 percentage points more than US Treasuries. The sale was managed by Deutsche Bank and JPMorgan Chase & Co. The money will be used to refinance Coldelco’s debt as it borrows to boost production in the face of surging demand.

The Chilean government again raised economic growth forecasts, thanks to buoyant copper prices and strong domestic activity. The Economy Ministry forecasts GDP growth this year at 6.2%. It also expects a record investment rate of 27% of GDP.

Chile’s London-listed Antofagasta mining group posted a 78% leap in first half pre-tax profits, thanks to record prices for its two main products, copper and molybdenum. Revenues from its three copper mines in Chile, its South American water and rail businesses rose to $1.12 billion from $753 million in the same period of 2004. Pre-tax profits rose to $739.5 million from $415.4 million.

Presidents Ricardo Lagos of Chile and Eduardo Rodríguez of Bolivia are to meet on Thursday in New York for the first time since Rodríguez took office in June. The meeting will be held against the backdrop of the UN’s 2005 World Summit taking place this week. Relations between the two countries have warmed in recent years with Chile offering to Bolivia’s then president, Carlos Mesa, at the 2004 Summit of the Americas to re-establish bilateral relations with Bolivia. The two countries broke off diplomatic relations in 1978 following a century-long dispute regarding Bolivia’s access to the sea and only maintain ties at consular level.

Chilean voters are likely to elect Michelle Bachelet as president in December. Polls confirm that Bachelet, a Socialist, and defense minister in the ruling coalition, will easily beat her conservative rivals Joaquín Lavín of the Democratic Independent Unity and Sebastián Piñera of the National Renewal Party.

Chile’s trade surplus widened to $698 million in August as prices for copper, the country’s main export, rose to record highs. The trade surplus was $583 million in July. The economy will grow more than 6 percent this year, according to the central bank estimates, and that growth is driving up demand for imported cars and heavy equipment. August exports increased 20 percent from a year earlier while imports increased 33 percent.

Chile’s economy grew 4.4% year-on-year in July, the slowest pace in 18 months, as mining output fell and surging oil and gas prices hurt manufacturing. The country expanded 6.4% year-on-year in June. The pace of growth is likely to pick up later this year as domestic demand from businesses and consumers and private investment remain strong, the Central Bank said in a report last week.