Peru’s mining bonanza will be driven by private investment of more than $10 billion in the next five years. However, the leading base metals producer faces a popular backlash.
Category: Regions
Posted inMagazine
SHF Stays the Course
Mexican mortgage agency SHF is sticking around to shepherd the market through troubled times. This brings temporary relief, but the private sector wants to lead.
Posted inMagazine
Revamping in Good Times
Trinidad and Tobago’s oil and gas companies are taking advantage of high energy prices to invest in the future. NGC alone plans to spend around $500 million.
Posted inMagazine
Industrial Evolution
Guatemala’s dominant financial institution, Banco Industrial, awaits a window to raise equity capital to feed regional expansion. The increasingly attractive target says it is not for sale.
Posted inDaily Brief
Colombia Leaves Rate Unchanged
The monetary policy committee of Colombia’s central bank has left the policy rate unchanged at 9.75% after their meeting Friday, as expected, citing measures it has taken to control inflation in the past month. The bank notes, however, that the inflation in February was 1.5%, more than expected, fundamentally because of rising food prices.
Posted inDaily Brief
Banco de Bogota Readies COP Bonds
Banco de Bogota plans to sell COP200bn in April, CFO Maria Luisa Rojas tells LatinFinance. The notes rated AA+ on a local scale will have a maturity of 7-10 years. Proceeds are for working capital. In February, the bank’s president told local media to expect an issue of up to COP300bn. Banco de Bogota and Valores Bogota will manage the sale.
Posted inDaily Brief
Cemex Adds to April MXP Bond Pipeline
Mexican building materials provider Cemex plans to sell up to MXP3bn in peso-denominated bonds in April. The mxAA+ offering will include a 2018 fixed-rate tranche, and a 2010 tranche over 28-day TIIE. Cemex has not yet set the sale date or indentified use of proceeds. Santander is managing the sale. Cemex sold MXP2.5bn in 7 and 10-year UDI-denominated bonds in December via HSBC. Separately, ING Hipotecaria is heard preparing a RMBS issue of up to MXP1bn via Santander to price in April. Grupo Posadas’ MXP2.5bn sale in 2018 fixed and 2013 floating-rate notes via Credit Suisse is slated for April 1, and Infonavit is preparing to sell MXP3bn in 2030 MBS April 9 through Banamex and Deutsche. Telmex may also follow with a mixed issue of up to MXP3bn in AAA notes up to 20 years via Inbursa. Broadcaster Televisa has filed for an MXP7bn 4-year shelf.
Posted inDaily Brief
LatAm Equity Funds Gain
LatAm equity funds gained 3.92% during the week ended March 27, according to Lipper. EM funds rose 4.06% while China region funds gained 5.15%, close to the biggest riser of the week, natural resources, with 5.33%. Financial services equity funds had the most significant drop of the week with 1.96%, says Lipper. However, LatAm equity funds saw outflows $1.5bn in the first quarter, while Brazil equity funds lost $579m, according to EPFR Global. The drainage was more severe what was seen in the same quarter a year ago, during which the losses for LatAm and Brazil were $238m and $144m, respectively. The only EM region to actually see equity inflows in Q1 was EEMEA, which gained a thin $157m. In total all of EM lost $20bn in funds, which paled in comparison to the $69bn that flowed out of all developed markets. Meanwhile, money market funds absorbed $141bn in the quarter, demonstrating a strong flight to quality throughout the period.
Posted inDaily Brief
Grupo KUO Sheds Phosphate Biz
Mexico’s industrial conglomerate Grupo Kuo has agreed to sell its Quimir phosphate business to chemical firm Mexichem for an undisclosed amount. Kuo plans to use proceeds of the sale to fund projects and pay down debt. Quimir had sales of about $160m last year and specializes in the production of industrial phosphates, used mainly in detergents. Mexichem plans to spend $300m on acquisitions in the near term in Mexico and LatAm.
Posted inDaily Brief
UMS Brings $1.25 in Exchange Warrants
Mexico plans to sell warrants with a notional value of $1.25bn that will allow investors to exchange foreign currency debt for peso debt. On April 2 and 3, investors will be able to purchase two types of warrant that allows them to trade in 21 series of dollar, euro, deutschemark and Italian lira-denominated bonds with maturities between 2009 and 2034 for local bonds. The first warrant has a notional value of about $1bn and offers peso-denominated bonds due 2014, 2017 and 2036. The second is worth roughly $250m and offers 2017 and 2035 debt denominated in UDIs. Holders of the warrants will be able to receive their new bonds on October 9. This is the first Mexican warrant transaction to allow swapping into UDIs, as well as the first time the liquid global 2034s will be involved, according to a banker on the deal. This is the fourth sale of warrants since 2005. The government has exchanged more than $4bn in foreign-currency debt for peso bonds in the last two years. Barclays and Merrill Lynch are managing the transaction.