Category: Colombia

Colombia increased its buyback of dollar- and euro-denominated bonds from $700 million to $1.1 billion. It was the largest such operation ever carried out by the sovereign. The Finance Ministry said it decided to increase the amount because of large bondholder interest. The buyback was carried out last Wednesday and was led by Goldman Sachs and Merrill Lynch.

Foreign portfolio investment in Colombian equities to August rose 15.8% to $955.6 million, compared with figures to July. This is up 178.8% compared with the same period in 2004. Analysts attribute the rise to the country’s improved economic performance and the weakness of the dollar. Meanwhile, foreign portfolio investment in debt was down by 14.5% to $346.6 million, although year-on-year investment was up 254.6%.

Colombia is expected to outline plans imminently for the sale of fixed wireless broadband licenses. Although only current fixed-line operators can bid for the national licenses, other operators will be able to apply for departmental ones. Bidders for the departmental licenses will be guaranteed to win if there are no other applications submitted within 30 days, otherwise normal competition rules will apply.

In a surprise move on Friday, Colombia cut its overnight lending rate from 6.5% to 6%, the first reduction since December last year. The cut is aimed at slowing the rise of the peso to protect local exporters. The Colombian currency has strengthened 10% against the dollar over the past 12 months.

Colombia yesterday began selling $500 million dollar-denominated bonds maturing in 2024, reopening its January 2004 issue. Goldman Sachs and Merrill Lynch are managing the sale. This follows an announcement last week that Colombia will buy back $700 million in euro- and dollar-denominated bonds due 2006 and 2033.

Colombia is planning to repurchase $700 million of euro and dollar-denominated bonds this month as the government seeks to protect itself from future swings of the peso against foreign currencies. The dollar bonds will have maturities between 2006 and 2033 and the euro-denominated bonds are set to mature in 2008 and 2011. Colombia’s government is seeking to cut the portion of its foreign debt as a percentage of overall debt to 40 percent this year from 42 percent in February.

Nearly three million people in south-western Colombia were left without electricity after suspected rebel attacks. Officials said they believed bomb attacks on a number of electrical towers caused the blackout, which is affecting three provinces. Energy company Isa said it was trying to import power from neighbouring Ecuador.

Bavaria Sells OutLondon-based brewer SABMiller is acquiring Colombian brewer Bavaria in a deal with the company’s controlling investors, the Santo Domingo Group. The sale of Bavaria is Latin America’s most […]