Colombia is targeting expansion in biofuels, spurred by an improved business and security environment. Significant investment is urgently needed.
Category: Regions
Posted inMagazine
CORPORATE GOVERNANCE: Tussle at the Top
Our fourth annual survey of ethics and sustainability at LatAm’s leading banks highlights continued improvement and a fierce battle for leadership. Mexican banks are also stepping up.
Posted inMagazine
Mexico Special Report: In Decreasing Circles
After years of solid growth, the Mexican local markets have hit a wall. Demand and supply of capital are rising steadily, but the flow is not being intermediated.
Posted inMagazine
Andean Special Report: Ore Dreams Turning Reality
It has taken 160 years, but the waiting may finally be over for Bolivia’s massive Mutún deposit. Many remain skeptical that the iron ore will ever see the light of day.
Posted inMagazine
Mexico Special Report: Guillermo Ortiz Interview
After a successful decade leading Mexico’s central bank, the global financial crisis is the toughest test yet for Guillermo Ortiz. The central banker has harsh words for the Bolsa.
Posted inMagazine
Mexico Special Report: Infrastructure Gets Local
Mexico faces challenges to involving the private sector in infrastructure. After success at the federal level, now comes the task of attracting bidders to state and muni projects.
Posted inMagazine
Caribbean Special Report: Castles Made of Sand
The Caribbean struggles to reach critical mass to attract investors as insularities among members persist. The world economic downturn erodes tourism, an economic pillar for the region.
Posted inMagazine
Caribbean Special Report: Breaking a Habit
The Caribbean needs to find ways to break a dependency on oil as a means to fuelling growth. Ethanol and biofuels could be an alternative.
Posted inDaily Brief
Fitch Highlights Colombia’s Solid Fundamentals
Citing the country’s macro stability, improved growth, disciplined fiscal policies and deft liability management, Fitch affirms Colombia’s foreign currency sovereign IDR at BB+ (stable) and the local currency IDR at BBB minus (stable). However, a less robust monetary and exchange rate policy framework and relatively high fiscal and external solvency ratios are weaknesses. “Colombia also remains vulnerable to external shocks due to limited trade integration, high commodity dependence, and considerable trade exposure to Venezuela,” the agency says. The average inflation rate in Colombia is forecast to reach 6.0% in 2008, below the 7.2% of the BB median, Fitch adds. “Nevertheless, progressive tightening of capital controls as well as the perception that the central bank is pursuing multiple objectives has led to greater exchange rate volatility and hurt inflation expectations in recent months,” the agency adds.
Posted inDaily Brief
Aerodom LBO Takes Off
Private equity firm Advent International is close to landing its buyout of Aeropuertos Dominicanos Siglo XXI (Aerodom). The global firm, whose Mexico team is running the deal, is raising $350m in the syndicated loan market to help pay for the asset, which operates 6 Dominican airports on concession from the government. The facility is broken into 2 tranches: a $125m 7-year amortizer at 450bp over Libor and a 7-year bullet with cash sweep that pays 450bp out of the box. Pricing is on a leverage grid and includes step ups taking the margin as high as 900bp over Libor, according to people with knowledge of the terms. Leverage out of the box is heard at 3.5x. ING and Scotia are leading, and EDC has signed on as a senior MLA. The deal will likely be funded ahead of syndication, scheduled to close in mid-September. Around 9-10 banks are expected to participate, including Dominican institutions, say bankers away from the deal.