The Electropampas/Pampas Verdes hydroelectric and irrigation project in Ayacucho, Peru is heard moving ahead with $2bn in project financing. “This is going to be one of the most important projects for Peru going forward,” Carlos Penny, president of financial advisor to the project, Pennynvest, tells LatinFinance. Long term financing should be in place over the next 16 months, he adds. “We are going to be working with the multilateral agencies, we have spoken to CAF – they are very interested,” says Penny, adding that the project managers are also talking to the IFC, IDB, OPIC and MIGA. “All these entities have been formally contacted and we have had conversations with some of the large international banks, particularly European,” says Penny. The four hydro plants will generate a combined 1,200MW and accumulate 1bn cubic meters of water. The project has been studied over the last 8 years by Switzerland’s Electrowatt. It has four sponsors: one Peruvian, one UK and two Swiss, and there are discussions to involve a major international electricity group. Penny declined to identify the parties involved. The project will take four years to build. Penny does not anticipate environmental issues since the areas to be irrigated are unpopulated. It will include a 36km tunnel connecting two lagoons, he adds. Given how long this project has been in the works, locals have been skeptical that it will see the light of day.
Category: Regions
Credit Suisse Wins Big At LatinFinance Gala (1)
Credit Suisse, Mexico and Cleary Gottlieb were among the big winners at last night’s LatinFinance 20th Anniversary Gala Dinner & Awards Ceremony in Miami. Following is a list of winners presented at the event.
Mexico’s TRIG Readies $1bn PF (1)
A $1bn project finance package for Tren Interurbano de Guanajuato (TRIG), a light railway system in the eponymous Mexican state is heard forthcoming in the next six weeks, say bankers close to the process. The 10-year financing, being led by WestLB, is a refinancing of existing project debt. A substantial portion of the new debt will also come via a subordinated tranche, says the banker. The new package is to be rated and will include a guarantee by German ECA Hermes. ICA and Siemens’ Mexico arm are the two engineering shops working on the project. Pricing and tranche sizes are still forthcoming. The deal is among a handful of large projects in the works across the region, and one of several deals being led by WestLB. Others include Peru LNG, Transalta, and Buenaventura Port.
Banesco Plots CentAm ExpansionBanesco Plots CentAm Expansion
Banesco, Venezuela’s leading bank by assets, is planning to expand further into Central America after opening up shop late last year in Panama. “The next 10 years are going to be the golden decade of Central America,” Juan Carlos Escotet, Banesco’s president, tells LatinFinance. “We’re not looking at competing in Brazil, for example, although not because we’re not professionally capable, but because the capital demands are large,” Escotet explains. “It’s much more logical to target the Central American region.” After three years of strong economic expansion in Venezuela, growth is likely to continue at a slower pace over the medium term, suggesting the outlook for domestic banks is deteriorating, according to Fitch. With this in mind, Banesco is being proactive in its overseas growth. Escotet says Banesco examined the possible acquisition of two banks, in Costa Rica and Guatemala, but in the end opted to install and develop its own banking model – a move far less costly than undertaking acquisitions. Banesco used its own capital to fund the opening of a full retail bank in Panama last year. It has operated an international bank in Panama since the mid-1990s, and has small operations in Florida and Puerto Rico. Panama was the place of choice to expand, Escotet says, because Banesco already had a footprint there and because the country has become a key destination offshore for funds belonging to Venezuelan high-net-worth individuals. Banesco’s Panama operation held $704 million in assets at the end of 2007, and made a net profit of $8.7 million. At the end of 2007, Banesco had total assets of $12.88 billion equivalent in bolivars – up 51% in a year.
Mexico’s TRIG Readies $1bn PF
A $1bn project finance package for Tren Interurbano de Guanajuato (TRIG), a light railway system in the eponymous Mexican state is heard forthcoming in the next six weeks, say bankers close to the process. The 10-year financing, being led by WestLB, is a refinancing of existing project debt. A substantial portion of the new debt will also come via a subordinated tranche, says the banker. The new package is to be rated and will include a guarantee by German ECA Hermes. ICA and Siemens’ Mexico arm are the two engineering shops working on the project. Pricing and tranche sizes are still forthcoming. The deal is among a handful of large projects in the works across the region, and one of several deals being led by WestLB. Others include Peru LNG, Transalta, and Buenaventura Port.
Credit Suisse Wins Big At LatinFinance Gala
Credit Suisse, Mexico and Cleary Gottlieb were among the big winners at last night’s LatinFinance 20th Anniversary Gala Dinner & Awards Ceremony in Miami. Following is a list of winners presented at the event.
Banesco Plots CentAm Expansion
Banesco, Venezuela’s leading bank by assets, is planning to expand further into Central America after opening up shop late last year in Panama. “The next 10 years are going to be the golden decade of Central America,” Juan Carlos Escotet, Banesco’s president, tells LatinFinance. “We’re not looking at competing in Brazil, for example, although not because we’re not professionally capable, but because the capital demands are large,” Escotet explains. “It’s much more logical to target the Central American region.” After three years of strong economic expansion in Venezuela, growth is likely to continue at a slower pace over the medium term, suggesting the outlook for domestic banks is deteriorating, according to Fitch. With this in mind, Banesco is being proactive in its overseas growth. Escotet says Banesco examined the possible acquisition of two banks, in Costa Rica and Guatemala, but in the end opted to install and develop its own banking model – a move far less costly than undertaking acquisitions. Banesco used its own capital to fund the opening of a full retail bank in Panama last year. It has operated an international bank in Panama since the mid-1990s, and has small operations in Florida and Puerto Rico. Panama was the place of choice to expand, Escotet says, because Banesco already had a footprint there and because the country has become a key destination offshore for funds belonging to Venezuelan high-net-worth individuals. Banesco’s Panama operation held $704 million in assets at the end of 2007, and made a net profit of $8.7 million. At the end of 2007, Banesco had total assets of $12.88 billion equivalent in bolivars – up 51% in a year.
OMA Approves Stock Repurchase
The board of Mexico’s Grupo Aeroportuario del Centro Norte (OMA) has approved a MXP300m share repurchase. The total adds to a MXP1bn amount authorized for share repurchases last year. It is unclear how the repurchase will be funded.
LatAm Stock Funds See Stellar Gains
LatAm equity funds soared 5.78% in the week ending April 3, taking it to a net 1.79% rise year-to-date, according to Lipper. China region funds were the biggest gainers of the week with 6.97%, while EM funds rose 3.28%. After China, the next big performer was real estate funds, gaining 6.30%. Overall, most world equity funds reported gains, with a combined rise of 3.22% for the week, according to Lipper. EM debt funds meanwhile returned 0.48% in the week ended April 3, according to Lipper. International income funds experienced the biggest drop with 1.11%, while global income funds lost 0.67%. High yield funds made 0.67%, the biggest climb of the week.
Mexican Economy to Grow in 2008: CS
Despite the economic crisis in the US, the Mexican economy will experience moderate expansion in 2008, according to Credit Suisse, forecasting growth at an average annual rate of 2.4% in 2008, down from 3.3% in 2007. The Mexican government reported that the monthly GDP proxy rose 4.2% year-on-year in real terms in January and 0.9% relative to December (non-annualized), after adjustments, says the shop. “These were surprisingly strong figures, considering that real GDP growth averaged 3.3% in 2007,” CS says. The available data for early 2008 supports the thesis that the Mexican economy is more resilient than in the past. “It’s still early, but so far, so good,” the shop says.