Ecopetrol says it plans to float up to a 9.9% stake early next year to fund its investment plans. The Colombian oil company’s 2011 investment plan requires financing of $6.06bn which it says could come from the stake sale, fundraising in either the local or international capital markets, credit facilities with commercial banks, export development credits and the sale of non-strategic assets. In addition, the company’s subsidiaries and affiliates will require $1.458bn in financing. Ecopetrol’s financing needs could be even higher if it decides to make acquisitions next year, it says.
Category: Regions
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PDVSA Gets 18% in Swap
Bondholders agreed to swap $549.9m (18.3%) of PDVSA’s 2011 bonds in an exchange offer that closed Friday, the state-owned Venezuelan oil company says. In return for the zero-coupon 2011 bonds, PDVSA will issue $618.7m in 8.0% of 2013s. It had offered $1,125 per $1,000 if done by October 28, and $1,095 per $1,000 if done after. There are now $2.45bn 2011 bonds outstanding, PDVSA says. Citi managed the process. PDVSA also sold $3.0bn in new 8.5% 2017s last month, and is heard looking to place another $1.0bn-$1.5bn of new bonds, according to Credit Suisse.
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MDU Sells Transmission Lines for $70m
MDU Resources has sold its interest in 3 electrical transmission lines in Brazil to 2 buyers for $70m. The US-based energy and transportation infrastructure company says the buyers, Brazil power companies Cemig and Celesc purchased 84.4% of its interest in the lines, while a third, Alupar, will acquire the rest over the next 4 years. The acquirers are existing partners in the transmission lines.
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Moody’s Upgrades KCSM
Moody’s has upgraded railway company Kansas City Mexico (KCSM) to B1 from B2. The rating was raised in recognition of dramatically improved operating results realized in 2010 at both the parent and subsidiary level, and expectations that both entities will continue to exhibit robust financial performance over the next few years as demand will continue to grow in most freight groups at the railroads in a robust pricing environment. The outlook is positive.
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Jamaica Slashes Rates
The Bank of Jamaica cut its monetary policy rate by 50bp to 7.50% in response to lower inflation. JPMorgan expects annual inflation to moderate from 13.2% in September to 10.0% by year-end due to still weak domestic demand and a stable Jamaican dollar. It also says double-digit inflation and upside risks stemming from the recent surge in global food prices will limit the central bank’s ability to cut interest rates further. Including Friday’s rate cut, the central bank has cut rates by a total of 300bp since February.
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ISA Considers Partner for Cintra
Colombian infrastructure company ISA will consider bringing in a partner to buy the 40% stake in Cintra Chile it does not already own, says a company spokeswoman. She adds that the search for a potential partner has not begun, as ISA’s option to buy the stake in the highway operator does not take effect until 2012. The company has not yet begun to consider financing options. ISA completed the acquisition of a 60% stake in Cintra for about $300m from Spain’s Grupo Ferrovial in September. Part of the acquisition will be financed with a $150m loan from BBVA and proceeds from a 2009 ISA share issue.
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Chavez Plots State-Run Bolsa
Venezuela’s government plans to create a state-run stock and bond exchange, according to wire reports citing television remarks from president Hugo Chavez. The public market, which will begin operations in December, would allow state-run companies to sell securities with investments being guaranteed by the state, Chavez reportedly says. Earlier this year, the government closed more than a dozen banks and 40 brokerages that it said committed fraud and set artificial exchange rates. Separately, a new bond issue from PDVSA could be in the works, according to Credit Suisse. “We heard continuous discussion of the possibility of another $1.0bn-$1.5bn of new PDVSA bonds placed with the central bank,” it says.
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Panama Meets Samurai Investors
Panama is set to meet the Japanese buyside this week, according to a finance ministry official, in advance of a January bond transaction. The sovereign has been planning to follow others from the region, such as Mexico and Colombia, in tapping the Samurai market, and seeks a $500m equivalent 10-year JBIC-guaranteed deal to be completed in January. Daiwa and Mitsubishi are managing the sale. The sovereign, with 3 out of 3 investment-grade ratings, would aim for a coupon under 2%, Diego Ferrer, head of institutional relations at Panama’s public credit office, told LatinFinance in September. Mexico has since issued JPY150bn 2020 with a 1.51% coupon.
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Actis Purchases Brazil’s Gtex
Actis has acquired Brazilian cleaning products company Gtex for BRL90m ($53m). The UK-based PE firm is acquiring the company through its $2.9bn fund, Actis Emerging Markets 3. Gtex owns a portfolio of cleaning products, with a presence in segments including laundry soap, fabric softeners, disinfectants, bar soaps, multi-use cleaners and steel wool. This is Actis’ second investment in Brazil in the past 2 months. In September, it invested $58m in supermarket chain Cia. Sulamericana de Distribucao. Actis has $4.8bn in AUM.
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Anglo American Sells Chile Assets
Anglo American is selling its Chilean Moly-Cop business to Australia’s OneSteel. The subsidiary manufactures grinding equipment, and has facilities in Chile, Peru, Mexico and Canada. The business is being sold alongside Anglo American’s Canada-based AltaSteel unit for a total of $932m. The 2 units had combined revenues of $642m in 2009 with Ebitda of $72m.