Category: Regions
Posted inDaily Brief

IMF Moves Singh to Asia

by LatinFinance

The IMF’s man in LatAm, Anoop Singh, has been appointed director of the Fund’s Asia Pacific department. IMF MD Dominique Strauss-Kahn, who did not name a successor, says the move is part of an “ongoing refocusing effort.” Singh, currently director of the Western Hemisphere department, takes over from David Burton who is leaving the fund in the “voluntary separations phase” of the IMF’s organizational restructuring. There will be a period of transition before the new appointments become effective, which the fund has yet to define.

Posted inDaily Brief

Peru Sees Marginal Inflation Hike

by LatinFinance

Inflation in Peru – the fastest growing LatAm economy – slowed to 0.15% in April, a considerable drop from the previous month’s 1.04%, according to the Peruvian government statistics institute INEI. This is below market forecasts of 0.35%-0.40%, says Carola Sandy, analyst at Credit Suisse. Year-to-date, inflation in the Andean country adds up to 2.34%, the institute reports. External pressures could aid a further decline in Peru’s inflation. “I think what’s important for Peru is the trend in food inflation globally,” Sandy says. “We are expecting food inflation to decline and this should help inflation in Peru to continue to decline,” she adds.

Posted inDaily Brief

Banco Industrial Hybrid Details Emerge

by LatinFinance

Guatemala’s Banco Industrial priced an offering of Tier 1 capital securities worth $30m. The issue, cloaked in secrecy at the time of pricing last week, is made up of 60-year non-call 10 debt securities that switch from fixed to floating-rate notes in year 10. In the first 10 years, they pay an annual coupon of 9%. In year 10, if not called, they jump to Libor plus 600bp, a figure that was calculated by adding the April 25 10-year Libor spot rate of 450bp to a spread of 150bp. The notes, which priced at par, are rated Ba3/B+/B+, and get 100% equity treatment. At 9%, the transaction was seen as aggressive, especially versus higher-rated hybrids from US commercial banks in the past two months, which were done at 8%-10%. That partly explains the smaller size of the deal, says a banker close to the process. Credit Suisse led and Guatemalan investors were among the buyers.

Posted inDaily Brief

Peruvian Exporter Gets Term Loan

by LatinFinance

Peruvian fishmeal and fish oil producer Pesquera Exalmar has closed a 6-year $80m export-backed term loan, its first in the international market. The facility is secured by assets including vessels, licenses and processing plants, as well as export receivables from customers in Germany, Japan and China. It pays Libor plus 350bp. The unit of Corporacion Exalmar will use proceeds to pay down debt and fund its purchase of 50% of rival Corporacion del Mar for an undisclosed amount. WestLB arranged the loan, which included as participants BNP Paribas, Citi, Rabobank, Natixis and Israel Discount Bank.

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