Mexico’s America Movil is preparing an issue of up to MXP2.5bn in 2018 notes, the fourth from a 4-year MXP10bn shelf it filed last year. The exact timing of the AAA sale has not been set, but could be as soon as Wednesday. Proceeds are for general corporate purposes, America Movil says in a filing. Inbursa, Banamex and Santander are managing the sale. Separately, Banorte is preparing an issue of 10 and 20-year notes, to price as soon as Friday. The amount of the offering under a 5-year MXP15bn shelf has not been determined, but is expected to be at least MXP1bn. The 10-year tranche is expected to price in pesos and be basis TIIE, while the 20-year portion will consist of fixed-rate UDI-denominated notes. Proceeds will strengthen the bank’s capital, according to a filing. Banorte’s own capital markets group will manage the sale.
Category: Regions
Mexico Rate Cut Expectations Fade: StanChart
The chance of near term rate cuts in Mexico is fading quickly, according to Standard Chartered. “Recent statements from the central bank note some downside risk to growth from the US, but the comments are not particularly dovish and are concerned about inflation being well above the 3% target,” the shop says. Standard has pushed back its expectations for the first rate cut to later in Q2 and still maintains a maximum of 100bp in easing for 2008.
WestLB to Arrange Financing for Abengoa Peru
WestLB is expected to arrange financing for the $106.1m Carhuamayo-Carhuaquero transmission line to be built by Abengoa Peru, according to a banker with knowledge of the project. The government awarded the Peruvian unit of Spanish utility Abengoa a 30-year concession to build and operate the 700km line Tuesday, and WestLB backed the bid. No details regarding the makeup of the financing have emerged. The line will become part of the “Longitudinal Trunkline of the Sierra,” starting in 2010 to transport gas-fired and hydroelectric generation from the country’s center to mines in the north.
Peru Authorizes Brady Buyback
Peru’s government has authorized $253.5m to be used to repurchase Brady bonds. The finance ministry plans to redeem up to $838.3m in FLIRBs, PDIs and discounts March 7. The finance ministry plans to raise the $253.5m by placing sovereign bonds domestically. It is waiting for a window of more favorable market conditions before pulling the trigger.
Ecuador 2012 Call Unlikely: JPM
A call of Ecuador 2012s seems unlikely this year, according to JPMorgan, because of the potential political cost. “Using fiscal resources to exercise the call could have a big political backlash – especially at a time when floods are forcing the government to declare an emergency and deploy resources,” says JPM. The finance ministry, however, is considering its options in terms of liability management. Investors could meanwhile benefit from the strength of these bonds. “Given the improved near-term fiscal position and the very low probability of a ’12s call, these bonds will keep offering one of the highest carry in EM external debt with low volatility,” the shop says.
Peru Overhauls Domestic Markets
Peru is capitalizing on robust economic expansion to revamp local markets. Finance Minister Luis Carranza Ugarte tells LatinFinance what lies ahead.
Peru Rocket Takes Off
Peruvian President Alan García is a man on a mission, calling for revolutions to transform the country. Investors adore the credit, but there are nagging concerns.
by Lucien Chauvin and James Crombie
Peru White Elephant Hits the Block
Peru is looking at financing projects stuck in the pipeline for decades. A $280 million electric train for Lima is the next deal slated to hit the block.
Bring on the Chinese
Chinese firms are heard well advanced with schemes to take a larger slice of Latin America, the origin of much of the natural resource fuel feeding the Asian tiger’s sustained […]
Preparing for More Equity
An increase in the limit on Mexican pension fund holdings of equity coincides with an increasingly hostile stock market. Investors will be slow to adjust.