Colombia’s Inversiones Argos says it has increased its stake in energy holding company Colinversiones by 15.3% to 44%. The investment company acquired more than 11m shares for a total of $118m. Argos says it has been raising its stake in Colinversiones ever since the company changed its strategy and began investing in energy generation projects. Argos has a majority stake in Cementos Argos and says it aims to diversify risk by boosting participation in Colinversiones.
Category: Regions
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Panama Says Canal Expansion on Track
The Panama canal’s $5.25bn expansion program is proceeding on-time and on-budget, says the Panama Canal Authority’s (PCA) vice president of research and market analysis Rodolfo Sabonge. “We have gone through world wars, Asian flu, the Iraq war, and other economic and financial upheavals in the world, but we have and continue to weather all the challenges that come our way,” Sabonge tells a shipping conference in Singapore. The PCA said in October that it would borrow $2.3bn from 5 multilaterals, clinching the funds as other infrastructure projects in the region see delays. The $2.3bn package has a 10-year grace period and breaks down into $800m from JBIC, $500m from the EIB, $400m from the IDB and $300m each from the IFC and CAF. According to PCA CEO Alberto Aleman, it is paying an average effective interest of 5.48%, with spreads over Libor on the different loans in the package of 48bp-120bp, stepping up to 140bp. Multilateral officials see the Panama canal project as high quality and important to the region. Mizuho is financial advisor to the PCA. “As with any business during this time of economic uncertainty, we are monitoring trends and adjusting where necessary to ensure that we are maximizing all of the canal’s resources,” says Sabonge. “Recent traffic statistics show that transits through the canal have remained fairly constant. Vehicle carriers represent the principal segment mostly affected by the credit crisis, but our projections are already indicating traffic increases for next year,” he adds.
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Colombian Bolsa Seeks Regional Integration
Colombia’s Bolsa de Valores is actively looking to merge with other LatAm exchanges and has been in talks with the Lima exchange as well as Panama’s, according to a New York-based equity analyst covering exchanges. “Colombia is pushing for integration and has already signed several MOUs with Lima,” says the analyst. One problem is that while the Colombia exchange has talked to Lima, it has not approached Cavali, Lima’s clearinghouse. The Lima exchange owns about 30% of Cavali and if an offer for the exchange does not include Cavali, another party could set up a trading system and acquire Cavali as its clearinghouse, according to the analyst. An official at the Lima exchange says that there were some conversations last year regarding the integration of the exchanges, but that no formal talks are taking place. Meanwhile, Panama’s securities commission says it is evaluating whether to recognize Colombia as an authorized jurisdiction, which would allow Colombian traders to list stocks on the Panama exchange.
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Macquarie Bullish on Mexico
Despite the fact that proximity to the US drags Mexico down more than other LatAm nations, Macquarie Capital remains optimistic on the country’s long-term prospects. “We believe Latin America is well positioned at this part of the 21st century to take advantage of growth, and the best place to start our push into Latin America is Mexico,” Mark Ramsey, president of Macquarie Capital Mexico, tells LatinFinance. The Australian bank opened a Mexico City office in January, its first in the region. “This is stage one of what will be a broader advance in to the continent,” says Ramsey. The initial focus is a planned MXP-denominated infrastructure fund targeting Mexican institutional investors and the international buyside. Macquarie also has plans to eventually offer the same corporate finance services that it offers elsewhere. It is already advising Mexican companies in areas like debt restructuring. Ramsey says his institution has a flexible approach, and plans to allocate resources depending on opportunities presented. Macquarie remains optimistic about the government’s infrastructure agenda, he says, despite delays to some of the most anticipated projects. “I don’t think there’s any shortage of opportunities,” Ramsey says. He notes that in many cases, projects have been accelerated in response to the downturn. Looking ahead, he highlights Farac III – for which Macquarie has submitted an expression of interest – as well as opportunity in oil and gas, electricity generation, and water treatment as upcoming possibilities. Though harder to raise than before, capital will still be available for the right projects, he says. “Once we get through the current economic slump Mexico might be better placed than most other countries to grow very significantly,” Ramsey concludes.
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CFE Teases Market with MXP Bond
Mexico’s Comision Federal de Electricidad (CFE) plans to price a bond Monday in the domestic market, after initially considering placing it this week, according to bankers managing the sale. The state-owned utility plans to price up to MXP4bn in a combination of 10-year MXP-denominated and UDI-denominated notes. If it opts for UDI notes, it would be the first corporate to issue in the inflation-linked unit this year. BBVA is managing the sale, rated AAA on a national scale.
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CFE Set for Local Bond
Mexico’s Comision Federal de Electricidad (CFE) is set to price a bond in the domestic market, a transaction initially scheduled for yesterday. The postponement by one day is due to documentation details, according to bankers on the deal, rather than market-related issues. The state-owned utility plans to price up to MXP4bn in a combination of 10-year MXP-denominated and UDI-denominated notes, according to a banker managing the sale. If CFE opts for UDI notes, it would be the first corporate to issue in the inflation-linked unit this year. The transaction, rated AAA on a national scale, comes from a MXP24bn shelf. BBVA is managing the sale. CFE aims to follow Pemex in pricing a large deal to help set a benchmark for Mexico’s corporate issuers, who have had a tough time in 2009 reaching a price consensus with investors. April 2, Pemex sold MXP6bn in 2012 bonds at TIIE plus 100bp and MXP4bn in 2016 bonds at a fixed 9.15% in a well oversubscribed issue.
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Isagen Picks Financial Advisors for Sale
Colombia’s treasury has selected Credit Suisse and Bogota-based Inverlink as its financial advisors for the sale of its 57% stake in electricity generator Isagen, according to sources in the ministry and one of the banks. The stake, made up of almost 1.6bn shares, has a market value of about $1.3bn, according to the Colombian government. One of the sources says that marketing to possible buyers should begin in 2-3 months and that a deal should take place by year-end. He adds that potential buyers are international strategics with expertise in electricity generation. However, he does not rule out energy-focused private equity funds and local companies. Colombia finance minister Oscar Zuluaga had announced the ministry’s interest in selling its stake in Isagen in February. Other government-owned companies with stakes in Isagen are Empresas Publicas de Medellin, Empresa de Energia del Pacifico, Empresa de Energia de Bogota and Financiera Energetica Nacional.
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Cemex Talks to Investors
Cemex will today meet with investors starting at noon in Mexico City. Among the items on the agenda are a proposal to pay dividends on the past year’s earnings, and, by extension, paying coupons on perpetuals; as well as provide an update on the debt renegotiation talks with bank creditors. While it is not clear how much detail the struggling cement giant will divulge on its restructuring, some expect the company will look to deliver a positive progress report. Cemex was heard having signed an agreement with banks in the past few weeks for a new injection of debt to meet short term obligations. The government was also heard pitching in with new funds. Cemex did not return calls seeking comment.
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Panama Gets WB Loan
The World Bank has approved an $80m loan to Panama that will be used to reduce poverty. About 32% of the country’s 3.3m people live in poverty, the bank says. The loan will be disbursed in a single tranche upon loan effectiveness and is payable in 20 years, including a 2-year grace period.
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Panama Joins Stanford Asset Sales Spree
Panama’s banking superintendent says it has received an offer from an unnamed group interested in acquiring the assets of Stanford Bank in that country. Other potential bidders, including banks, have also shown interest in the assets but have not presented offers, the superintendence says. The superintendent has not set a deadline for offers, a spokesman says. On February 17, the superintendent took over the bank and named a trustee after clients began withdrawing their funds from the bank. Stanford assets in Panama are valued at $228.6m.