Ecuador’s leading financial institution, Banco Pichincha, is using technology to maintain profitability in one of the more politically volatile LatAm operating environments. A century-long track record helps on the home […]
Category: Regions
Posted inMagazine
Best Bank – Central America
With a $1.77 billion all-cash purchase of Panama’s Banistmo in September 2006, HSBC entered Central America after more than two years searching for a target. One of the world’s strongest […]
Posted inMagazine
Personal Financial Services in Mexico:
Traditionally, the provision of personal financial services (PFS) in Mexico was dominated by large universal banks. But in 2003, a new concept was launched under the name of Banco Azteca: […]
Posted inMagazine
Best Bank – Guatemala
There were 24 Guatemalan banks as of mid-2007, down from 34 in 2000, and the sector is ripe for further consolidation to achieve economies of scale, modernization, new products, and […]
Posted inDaily Brief
IM Trust Looks to Peru and Colombia
IM Trust, the dominant Chilean investment bank, is expanding into some neighboring countries, in particular Peru and Colombia. In Colombia, it is teaming up with boutique investment bank Q&A Consulting. “We see a very good opportunity in the corporate finance business to be developed in Peru and Colombia,” says IM Trust executive director Guillermo Tagle. He adds that the larger Latin markets like Brazil and Mexico are less attractive because they are well banked by the bigger global players. But he does not rule out further expansion into Brazil or Argentina, for example, at some stage. “We have to go step by step,” says Tagle. (For more on IM Trust, see the November issue of LatinFinance.)
Posted inDaily Brief
Colombia Obliges with Rate Pause
In line with expectations, Colombia’s central bank has kept the policy rate unchanged at 9.25%, extending a pause started in August. Headline inflation continues to fall on the back of retreating food price inflation but the bank still sees risks on inflation and growth. “We expect the bank to leave the policy rate unchanged at least until end 2007,” says Goldman Sachs. “However, if the economy fails to decelerate convincingly from the strong above-trend pace of 1H2007 the central bank might have no option but to hike rates again in the near future in order to protect the 2008 inflation target,” it adds. The shop predicts the bank will set the 2008 inflation target at the same level of 2007: 4.0%, plus or minus 0.5%.
Posted inDaily Brief
Advent Buys Mexico Funeral Services Firm
Advent International has acquired 100% of Grupo Gayosso, the Mexican funeral services company, from private investors in a $317m leveraged buyout. The transaction was funded with equity provided by Advent and $195m in acquisition financing led by Scotiabank and Ontario Teachers’ Pension Plan. Besides a senior term loan and working capital facility, the financing includes a $40m subordinated loan with an 8-year bullet payment. Gayosso offers a complete range of funeral products and services through a nationwide network. “We see significant opportunities to grow by acquiring incumbent players in key cities not served by Gayosso and by opening new facilities in select locations,” says Alfredo Alfaro, a partner in Advent’s Mexico City office. Advent predicts consistent long-term growth in the Mexican funeral services market. In conjunction with the buyout, Advent has appointed a new CEO of Gayosso, Rafael Obregón, and named one of its operating partners, Kenneth Budde, to the company’s board. Obregón was previously CEO of Casa Herradura, the tequila producer. Gayosso is the latest acquisition by Advent’s $1.3bn Latin American Private Equity Fund IV.
Posted inDaily Brief
Advent Buys Mexico Funeral Services Firm (1)
Advent International has acquired 100% of Grupo Gayosso, the Mexican funeral services company, from private investors in a $317m leveraged buyout. The transaction was funded with equity provided by Advent and $195m in acquisition financing led by Scotiabank and Ontario Teachers’ Pension Plan. Besides a senior term loan and working capital facility, the financing includes a $40m subordinated loan with an 8-year bullet payment. Gayosso offers a complete range of funeral products and services through a nationwide network. “We see significant opportunities to grow by acquiring incumbent players in key cities not served by Gayosso and by opening new facilities in select locations,” says Alfredo Alfaro, a partner in Advent’s Mexico City office. Advent predicts consistent long-term growth in the Mexican funeral services market. In conjunction with the buyout, Advent has appointed a new CEO of Gayosso, Rafael Obregón, and named one of its operating partners, Kenneth Budde, to the company’s board. Obregón was previously CEO of Casa Herradura, the tequila producer. Gayosso is the latest acquisition by Advent’s $1.3bn Latin American Private Equity Fund IV.
Posted inDaily Brief
America Movil Eyes MXP Bond Issue
Fresh from a successful dual-tranche dollar tap, Mexican mobile heavyweight America Movil is looking to raise debt in pesos. “We’ll probably do a little bit in Mexico,” America Movil CFO Carlos Garcia Moreno tells LatinFinance. He declined to specify terms, other than to say that a floater would be short dated and a fixed rate issue likely be longer than 5 years. Garcia suggests that another dollar issue is unlikely for a while, and that America Movil will continue to alternate between the bond and bank market depending on relative pricing. “We’ll keep our eyes open in other markets,” he adds. The cash rich telecom returned to market after a 2-year absence Wednesday to raise $1bn to help fund capex, a recently announced dividend and an acquisition in Jamaica. It included a $600m 10-year at 99.633 with a 5.625% coupon to yield 5.673%, or 135bp over Treasuries, and a $400m 30-year at 99.047 with a 6.125% coupon to yield 6.195%, or 155bp over. Guidance was 135bp area and 155bp-160bp and the bonds were heard trading around re-offer by the close. “In terms of absolute costs, we got a very very good deal,” says Garcia. “The spread was right on the money.” According to the borrower, some high grade accounts rotated into America Movil from US telecom exposure. Joint leads were Credit Suisse and Goldman Sachs.
Posted inDaily Brief
America Movil Eyes MXP Bond Issue (1)
Fresh from a successful dual-tranche dollar tap, Mexican mobile heavyweight America Movil is looking to raise debt in pesos. “We’ll probably do a little bit in Mexico,” America Movil CFO Carlos Garcia Moreno tells LatinFinance. He declined to specify terms, other than to say that a floater would be short dated and a fixed rate issue likely be longer than 5 years. Garcia suggests that another dollar issue is unlikely for a while, and that America Movil will continue to alternate between the bond and bank market depending on relative pricing. “We’ll keep our eyes open in other markets,” he adds. The cash rich telecom returned to market after a 2-year absence Wednesday to raise $1bn to help fund capex, a recently announced dividend and an acquisition in Jamaica. It included a $600m 10-year at 99.633 with a 5.625% coupon to yield 5.673%, or 135bp over Treasuries, and a $400m 30-year at 99.047 with a 6.125% coupon to yield 6.195%, or 155bp over. Guidance was 135bp area and 155bp-160bp and the bonds were heard trading around re-offer by the close. “In terms of absolute costs, we got a very very good deal,” says Garcia. “The spread was right on the money.” According to the borrower, some high grade accounts rotated into America Movil from US telecom exposure. Joint leads were Credit Suisse and Goldman Sachs.