Aeroinvest, a Mexican investment company owned by local construction firm ICA, has placed MXP2.13bn pesos in Europeso bonds, maturing 2017, according to a statement by its parent company ICA. The bonds are rated BBB minus by Standard & Poor’s. Aeroinvest, which has stakes in airport companies including a controlling share in Grupo Aeroportuario Centro Norte (OMA), is planning to use the money raised to pay off earlier acquisition finance loans used to buy the OMA stake.
Category: Regions
Posted inDaily Brief
Fujimori To Enter Japanese Politics
Former Peru president, Alberto Fujimori, will apparently be standing for election in Japan after failing in his bid to run as a presidential candidate in Peru’s general elections last year. Fujimori is currently under house arrest in Chile after arriving in that country last year. He will stand for election to the upper house of Japan’s parliament in July as a representative of the People’s New Party.
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Colombia Secures $592m From Isagen IPO
Colombia’s government has raised a total of $592m from the sale of state-run generation utility Isagen. It announced on Wednesday that it had secured a further $52m (COP104bn) from the second-round sale of 3.37% of Isagen to add to the $246m (COP488bn) it received from the first-round sale of a 15.85% stake in May. During the first round, only privately owned pension funds, labor unions and company workers were allowed to buy the shares; in the second round, the shares were open to all.
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Davivienda To Issue bonds
One of Colombia’s largest banks in terms of assets, Banco Davivienda, plans to sell 400bn ($203m) in ordinary bonds following approval by the bank’s board, Davivienda told the securities regulator Wednesday. Davivienda will use the proceeds of the sale for working capital, says the company. Last October Davivienda acquired state-owned Bancafe from the government at auction for $927m.
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Mexican Economy Grows 3.2% in April
Mexico’s economy grew 3.2% in April, increasing from yoy growth of 2% in March. National statistics agency, Inegi, said agricultural production was up 5.2%, services were up 3.8%, and industrial production was up 1.5%. The government is targeting 3.3% GDP growth for 2007, while the Bank of Mexico has set a forecast of between 3% and 3.5%. The Mexican economy grew by 4.8% in 2006.
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Mexican, Chile Bolsas Sign Deal
Chilean and Mexican investors will soon be able to invest freely in each other’s domestic stock. Their country’s national stock exchanges signed an agreement on Tuesday to mutually recognize each other’s listed securities. The link-up is aimed at increasing liquidity and depth of both markets. Chile’s Santiago Stock Exchange has 246 companies listed with a combined market value of around $185bn, while the Mexican Stock Exchange lists 330 companies with a market vale of $375bn.
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Fitch Upgrades Selected Colombian Corporates and PF
Following its upgrade of Colombia’s long-term foreign currency IDR to BB+ from BB last week, Fitch Ratings has upgraded the foreign currency Issuer Default Ratings (IDRs) and issue ratings of several Colombian corporates and project finance. Fitch upgraded state-owned oil company Ecopetrol – to BB+ from BB (foreign currency IDR); Isagen to BB+ from BB; and the 9.79% senior secured notes due 2010 of TransGas de Occidente to BB+ from BB.
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Moody’s Improves Colombia Outlook
Moody’s Investors Service has changed its outlook to positive from stable on Colombia’s Ba2 foreign-currency government bond rating, Ba1 foreign-currency bond ceiling, and Ba3 foreign-currency ceiling for deposits. The outlook change reflects the improvement of key debt ratios as a result of the investment-driven recovery in growth and of continued fiscal restraint, said the agency. The outlook for Colombia’s Baa3 local-currency government bond rating is unaffected by the action and remains at stable, added Moody’s. Improved security, greater investment and fiscal consolidation were all factors in the agency’s action, according to vice president and senior analyst Alessandra Alecci.
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Suez Secures Panama Agreement
Suez Energy Central America has secured a six-year power purchase agreement in Panama of 62.25 MW, to be produced by a new 87 MW thermal power plant. Suez entered the Panamanian market in February when it acquired 51% of the country’s largest thermal power station, Bahia Las Minas.
Meanwhile, Suez Energy International will begin construction of a modern coal-fired 150 MW power station in the north of Chile, through Central Termoeléctrica Andino, aimed at supplying Chilean state-run copper producer Codelco. The plant is set to be operational by 2010.
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Colombia Economy Expands 8%
Colombia’s economy grew by 8% in the first quarter of the year, according to national statistics agency DANE, which published the results on Friday. DANE also announced revised final-quarter figures for 2006, which showed GDP growth of 8.36%, above the preliminary 7.97% result. Private investment was up 32% in the first quarter, said DANE, implying a high quality of growth. The dynamic growth of the economy, however, continues to put upward pressure on consumer prices, which rose to 6.23% for the 12 months through May. Last week the Central Bank raised its benchmark interest rate for the seventh consecutive month, taking it up 25bps to 9%. The Central Bank is targeting inflation of between 3.5% and 4.5% this year.