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.
Category: Regions
The Chinese are Coming!
Citi’s ambassador to China continues to bang the drum for LatAm. He is optimistic, especially about Asian investment in the region.
by James Crombie
Islands Adrift
The Caribbean is still trying to prove itself in the global economy. Attempts to create an exchange network are foundering and the region is exposed to the global slump.
by Julio Urdaneta
Resolving Mining Conflict
Alberto Benavides, the dean of Peruvian mining, sees benefits from a new environment ministry. He notes that Alan García has been both the best and worst leader.
by Lucien Chauvin
Ecuador Underscores Ability to Pay
by Julio Urdaneta Though willingness to pay may always be a question for investors in Ecuador, ability to pay is far from a problem, owing to record oil revenues. The […]
Out of the Many, One?
Led by Panama and propelled by trade agreements, Central America seeks to extend growth. With stronger links to the US and Europe, it must decide how far to integrate.
by Ben Miller
Rebuilding Colombia
Firm commodity prices, fiscal reforms and reduced violence has Colombia planning for an infrastructure buildout. The sovereign is targeting the private sector.
by Ben Miller
Back in the Fast Lane
Julio Torres oversaw the latest advances in Colombia’s debt management. Now, as a private equity executive, he is pushing for a fast redesign of state monoliths.
by Dan Shirai
The Fantastic Four
Four men have presided over Mexico’s ascension to debt markets supremacy. The global credit crunch tests and affirms the value of their labors.
by Greg Brosnan
Confronting a Crisis
The four men responsible for changing the shape of Mexico’s debt structure over the past decade give their thoughts on the way the looming US economic crisis will affect Mexico […]