Category: Colombia

The International Finance Corporation (IFC) has bought a 12.62% stake in Colombia’s largest producer of paper made from sugar cane fiber, Productora de Papeles (Propal). The IFC bought the stake held by the Colombian government for $18.9 million. Propal is controlled by local conglomerate Carvajal. The IFC, as at June last year, had invested $387 million in Colombia, in sectors ranging from finance to oil.

Colombia’s state-owned telephone operator Telecom, due for privatization in March, has bought regional fixed-line operator Batelsa, based in Barranquilla, in a deal worth $91.5 million (Ps 206 billion). Telecom was able to bid just under the pre-established minimum of Ps 209 billion after the three-qualifying bidders — EPM, ETB and Metrotel – failed to submit offers in the auction last Friday.

Five Colombian Congressmen have been sacked by their parties following allegations of links to paramilitary organizations. The Partido de la U and the Cambio Radical party, both supporters of President Alvaro Uribe, decided to oust the lawmakers ahead of the legislative elections on 12 March. Cambio Radical expelled Senators Jorge Castro and Jorge Caballero. The Partido de la U, which removed Congressmen Dieb Maloof, Habib Merheg and Luis Eduardo Vives as party candidates said the matter threatened the party’s credibility.

According to the Colombian government, Spanish telecoms giant Telefónica and Venezuela firm CANTV have both expressed an interest in buying state-owned Colombia Telecom, a controlling share of which is due to go under the hammer in March.

Colombia’s industrial output, excluding coffee processing, was up 0.49% in October as measured against the same month last year.

Colombia’s fifth-largest financial institution, Banco de Occidente, a unit of local holding company Grupo Aval, is to buy smaller rival Banco Unión in a share swap between the two banks. Banco de Occidente will make a public offer for 44% of the share capital of Banco Unión. Grupo Aval will then acquire those shares in Occidente.

Colombia’s GDP grew by 5.75% in the third quarter compared with the same period last year, the fastest rate in the past 10 years. This follows growth in the second quarter of 5.62%. Economic expansion was driven by a strong construction industry and rising consumer spending.

The Colombian government yesterday, Thursday, said it would be accepting bids from investment banks to advise on the future of state-owned Granbanco-Bancaf´e, the country’s largest state-owned financial entity. The winning bank would help the government analyze the options on Bancaf´e’s future.

Colombia’s Sodimac plans to issue around 100 billion pesos ($43.7 million) bonds, with a first tranche to be offered in the first half of next year. This will be the first time the home improvement retailer has raised finance through a bond issuance.

Colombia is planning to issue Y22.5 billion ($195 million) of Samurai bonds, the first time the sovereign has done so since 2001, and the first Latin American country to issue such instruments since Argentina defaulted on its Japanese-currency debt in 2001 and dampened Japanese investor interest. The principal and part of the interest will be guaranteed in Japan by the Japan Bank for International Cooperation (JBIC). The issue will be arranged by Mizuho Corporate Bank, which will offer the bonds to Japanese regional banks and insurance companies through a private placement.