Mexico’s Petrotemex, controlled by Grupo Alfa, is looking to raise $150m via a loan financing in the coming months. The petrochemical company has mandated Santander and Standard Chartered to arrange and syndicate the deal, though it is heard to be still a ways away from launch. Financing will be done both in dollars and Mexican pesos, say bankers familiar with the transaction. Proceeds will be used to refinance debt.
Category: Regions
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Chavez Reported Menacing Cemex
Venezuelan president Hugo Chavez has threatened “corrective actions” against a subsidiary of Mexican cement maker Cemex, according to a Reuters report. The news follows a wave of nationalizations by Chavez in a variety of sectors, including telecoms, steel and most recently, cement. He is reportedly ordering an inspection of the property limits of a Venezuelan Cemex plant to evaluate its impact on the environment following allegations of pollution.
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Bancredito Files Complaint on Tricom
Bancredito in Panama has filed a complaint in New York State Supreme Court against Luis Alvarez Renta, related to the issuance of a series of loans for the purchase of shares in cell phone service provider Tricom. “We are moving forward in the US courts to recover assets for Bancredito Panama,” says Peter Haviland, of lawfirm Kaye Scholer, which is representing the bank. The complaint focuses on a review of a $70m transaction with Bancredito Panama for the purchase of over 21m shares of Tricom stock, the bank said. The loans were described in a 2003 Tricom press release as an “equity investment” by a group of private investors, led by the company’s chairman and chief executive, Manuel Arturo Pellerano, it said. The “equity” consisted of a series of lending contracts signed by Bancredito Panama, to be secured by the Tricom shares which were to be issued pursuant to the agreements, according to the complaint. Alvarez Renta allegedly signed one of the lending contracts for $3.5m at an annual rate of 8%. A certificate was issued to him, as to others in the transaction, dated December 30 2002 for 1.06m shares of class A Tricom stock. A year later, Bancredito Panama entered liquidation and the bank’s Liquidator demanded that Alvarez Renta repay the loan. “Defendants have never responded to the demand and have failed to repay the loan,” Bancredito Panama says in the complaint.
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Mexico Keeps Rates Unchanged at 7.25%
As was widely expected by Street analysts, Mexico’s Banxico chose Friday to keep interest rates, as expressed by the Tasa de Fondeo, unchanged at 7.25%, with the Corto at MXP79m. A 3.6% depreciation of the peso between July 23 and August 16 led some analysts to believe a hike in interest rates would be necessary, given the potential added pressure on inflation, notes Citi. But Friday’s decision confirmed more recent surveys and reports that showed a consensus for maintenance at the current rate. “Banxico states that local markets have worked normally during the period of turbulence and have even shown relatively better outcomes in comparison with other markets,” says Citi. The shop adds that it sees Banxico maintaining its view on the markets and “keeping the charted course unchanged” as it waits for global market conditions to stabilize.
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Colombia Leaves Rates Unchanged
Colombia surprised Friday by leaving the benchmark interest rate unchanged at 9.25%, following calls by a majority of analysts for a hike. The Central Bank had been widely expected to respond to a deteriorating inflation picture with a 25bp rise in rates at last week’s monthly meeting. The move was also supposed to help prop up the ailing peso. But not raising rates would leave the currency more vulnerable and make it more difficult to reach the 2007-2008 inflation target of 3.50%-4.50%, analysts said before the decision. Central Bank policy makers said they wanted to evaluate the effect of 13 increases in 16 months amid global markets turmoil. In a statement on the decision, the bank said inflation fell in July and that the economy is growing strongly.
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Jamaica Seen Paying September Maturity
Hurricane Dean may dent growth in Jamaica after it hit the south coast of the country hard, but Bear Stearns for one, anticipates no payment disruptions on external debt, including a $225m bond coming due September 1. Bear notes Jamaica’s strong willingness to pay and ample foreign-exchange reserves, at over $2bn. On the bright side, the hurricane did not devastate tourist areas, and Bear predicts tourism will recover quickly. However, the city of Kingston and other areas on the south coast sustained heavy damage, including harm to the agricultural crop and port infrastructure for bauxite. “It seems likely that the storm will cost the government some money,” says Bear.
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Marubeni Buys Back Bonds
Marubeni Caribbean Power Holdings (MCPH) has launched a cash tender offer for any and all of the $100m aggregate principal amount outstanding of 7.017% notes due 2016 issued by Mirant Trinidad Investments (MTI). MCPH acquired MTI on August 8. Bondholders tendering and giving consent by September 5 get $1,012.50 per $1,000.00 principal, including a $1.25 consent payment. Those who commit by September 19 will receive $1,011.25 per $1,000 principal. Consent is to amendments to the indenture governing, which will eliminate certain restrictive covenants and events of default and modify the provisions of the indenture. MCPH is paying for the buyback with proceeds from a new $110m credit facility. In addition to the tender offer, MTI is making a separate change of control offer to purchase any and all outstanding notes at 101% of principal plus accrued and unpaid interest to, but not including, the purchase date. The change of control offer expires September 24. ABN AMRO, Calyon, ING and Mizuho are dealer managers.
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Colombia Seen Hiking Rates to 9.50%
The Colombian Central Bank will likely respond to the deteriorating inflation picture with a 25bp rate hike in its monthly meeting this Friday, according to analysts. With worsening global conditions affecting the country’s currency and inflation – the peso weakened 10% in August – the central bank should move to hike rates to 9.50%, which, with inflation at 5.20% in August, would leave real rates above 4.0%, according to BBVA. Colombia’s own domestic picture has improved, thanks to responsible management of the monetary policy, says the shop. But not raising rates would leave the currency more vulnerable and make it more difficult to reach the 2007-2008 inflation target of 3.50%-4.50%.
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Éxito Marks Colombia GDR Comeback
Colombian retailer Almacenes Éxito has raised $392m in a 144a/Reg S privately placed global depositary receipt program in the US. It became the first Colombian company to do a primary offer outside its home market in 10 years, according to JPMorgan, which is managing Éxito’s GDR program. “After a 10-year period, Colombian companies are once again looking to access capital markets outside of their borders,” says Claudine Gallagher, global head of JPMorgan’s depositary receipts group. DRs represent ownership in foreign corporations and typically trade on the US and/or European markets and settle in accordance with those market standards. Éxito’s stores sell consumer products, fresh products, apparel, home products and entertainment items.
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China to Set up Costa Rica Office
China, which is duking it out with Taiwan for control in Central America, plans to set up a representative office in Costa Rica by the end of 2007. With a presence on the ground, China’s Council for the Promotion of International Trade aims to boost trade relations between China and Costa Rica, as well as in communications between entrepreneurs of the two countries. A Chinese commercial delegation is in San Jose this week. The two countries established diplomatic ties June 1. According to China’s General Administration of Customs, trade between China and Costa Rica was $2.1bn in 2006, up 87% from 2005. Volume rose 65% rise in the first half of this year, according to the Chinese government’s website.