Category: Regions
Posted inDaily Brief

Suez Secures Panama Agreement

by LatinFinance

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.

Posted inDaily Brief

Colombia Economy Expands 8%

by LatinFinance

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.

Posted inDaily Brief

Merrill Joins UBS for Bancolombia Preferred Sale

by LatinFinance

Bancolombia, which is issuing 60m preferred shares at COP15,200 ($7.95) each, has tapped Merrill Lynch as a co-lead, following the previously reported mandating of UBS as global coordinator. The deal, which is expected to raise around $400m, follows a $400m sale of 2017 7.250% notes on May 21, which were priced at 98.661 to yield 7.064%. That offering was led by JPMorgan and UBS.

Posted inDaily Brief

Banxico Holds Rate at 7.25%

by LatinFinance

Mexico’s central bank, Banco de Mexico (Banxico), decided Friday to keep the country’s benchmark interest rate unchanged, at 7.25%, as had been widely expected by analysts. Better-than-expected inflation figures in May allowed Banxico’s to maintain the rate however inflation figures for the first two weeks of June prompted the bank to reiterate the tightening bias it announced last month. Headline inflation rose 0.08% in the first half of June while core inflation was up 0.17%. Annual inflation fell to 3.95% in May from 3.99% in April.

Posted inDaily Brief

Durango To Buyback $400m Debt

by LatinFinance

Corporación Durango, the Mexican paper and packaging company is to buy back $400m of its debt, to be financed by new debt, the company announced on Friday. The buyback of the debt, due 2012, is part of a refinancing package. The tender offer for the buyback expires on July 19. Merrill Lynch is managing the transaction.

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AIG Group Wins $1.32bn Colombia NPL Portfolio

by LatinFinance

The Colombian government has succeeded in selling a $1.32bn portfolio of non performing loans to a consortium led by AIG Global Investment for COP596bn ($314m). The bid came in above a COP319.5bn asking price, which the government kept secret until after the auction, which took place last Friday. Cargill, IFC and Covinoc teamed up with AIG to beat five other groups bidding. The NPL assets include mortgages, corporate and consumer loans and real estate assets from the 1999 financial crisis. This is the first public auction of NPLs in Colombia and the largest of its kind in South America to date, says Alyssa Grikscheit, partner at Goodwin Procter, which advised the winning consortium.

Posted inDaily Brief

Calderón Presents Tax Bill

by LatinFinance

Mexico’s president, Felipe Calderón, has presented the government’s tax bill to Congress, which aims to improve public finances and boost revenues by 30% or 3% of GDP by 2012. The proposed reforms seek a flat tax rate for businesses, a 2% tax on monthly cash bank deposits of over 20,000 pesos and a 20% tax on gaming. VAT will not be affected. The government hopes to have the bill passed by September but it could face more opposition in Congress than may at first have been anticipated, according to analysts.

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