Canadian mining company Pan American Silver Corp. has announced it plans to expand production at its San Vicente silver-zinc mine located near Potosi, Bolivia with an investment totaling $40.5m. The expansion project will include the construction of a new 750 tonnes per day processing facility, together with the necessary related underground mine development. In connection with expanding production at San Vicente, Pan American has purchased Empresa Minera Unificada’s 40% interest in Pan American Silver (Bolivia), the operating entity of San Vicente, for $9m plus a 2% NSR payable only after Pan American has recovered its capital investment in the Project and only when the average price of silver in a given financial quarter is $9.00 per ounce or greater. As a result of this purchase, Pan American has increased its ownership interest in PASB to 95%, with Trafigura Beheer, an international commodities trading company, retaining its 5% minority interest.
Category: Regions
Air Jamaica on Runway with $125m 2027
Jamaica’ flagship airline, Air Jamaica, aims to price $125m in 2027 amortizing notes, with an average life of 15 years Thursday afternoon. The bonds, rated B1/B by Moody’s and S&P, are heard by a trader coming at 7.625%-7.875%, a slight pickup to where the sovereign would price the same maturity. A person close to the transaction says it should come at a modest concession to the interpolated curve which was around 7.75% area Wednesday night. The deal will not grow. Jamaica is guaranteeing the bonds. Proceeds will be used to revamp the fleet and pay down debt. Bear Stearns has sole books.
Peru Tax Revenues Up 15%
Peru succeeded in increasing tax revenues by 15% in May, compared with the same month in 2006, according to figures published by the national tax agency Sunat. The $1.02bn total (3.23bn soles) included 1.51bn soles in income tax (+15.7%) and 1.05bn of value-added tax, or IGV, (+12%). Tax revenues accounted for 14.9% of GDP in 2006, and are forecast by the government to reach 16.5% of GDP by 2010.
Moody’s Raises Panama Ceiling
Moody’s has upgraded Panama’s foreign and local-currency country ceilings for bonds to A3 from Baa1. “Panama’s country ceilings for bonds are meant to capture the risk of a disruption in the smooth functioning of the dollar payments system, as occurred during the 1988-89 political crisis,” says Moody’s senior analyst Alessandra Alecci. At that time, the US suspended the clearing arrangement between Panama and the Federal Reserve, and the Panamanian authorities imposed a nine-week bank holiday. Alecci adds that the upgrade reflects the marginal but real decline in such risk in light of continued relative macroeconomic and political stability. “Evidence of such stability is found in the responsible running of the Panama Canal since the handover from the US in 1999, and in the relative smooth running of government affairs despite periods of alternating power between the two main political parties,” says Moody’s.
Guatemala Prepares International Bond
The Republic of Guatemala has mandated Deutsche Bank for a dollar bond issue. Carlos Santizo Reyes, head of capital markets at the country’s public credit bureau, tells LatinFinance that the deal is still in its early stages, and timing and amount have yet to be decided. But bankers say the offering could be for up to $300m and longer than 10 years. Guatemala has a $150m bond coming due in August and additional maturities in 2011, 2013 and 2034.
Mexican Europeso Market Picks Up
Activity in the Europeso market is heating up as foreign issuers with local revenues look to tap domestic currency. Coming up next week, Bear Stearns plans to tap the Europeso market for $200m worth of peso-denominated notes, from a local MTN program. Price talk is due out early next week. On Monday, BMW sold MXP1bn in 4-year Europeso notes at a 7.75%. Banco Ixe led both.
Mexican Power Commission Seeks $160m
Mexico’s Comisión Federal de Electricidad is looking to raise a MXP1.75bn in 10-year floating rate bonds this Thursday. Price talk is 29bp over the 6-month Cetes. The offering is being led by Banco Ixe.
Microsoft Appoints Rincón in Charge of Latin America
Hernán Rincón has been appointed the new director in charge of Latin America for Microsoft, the company said in a statement. Colombia-born Rincón, who replaces Eugenio Beaufrand, will take over on July 1 as vicepresident for the region. Beaufrand is to take a one-year sabbatical, said the US company.
De Nicolás Back As Homex Chief Exec
Homex, one of Mexico’s largest housing constructors, has named Gerardo de Nicolás as its new chief executive, reappointing him to a post he held until last September when he stepped down to spend more time on strategic planning. He replaces David Sánchez who came from Infonavit, the largest, government-run home finance agency, where he had been head of planning and finance. Sánchez resigned with effect from June 5 to “pursue new interests”, according to a company press release.
Mexico’s Mifel Preps Perp
Banco Mifel, a local Mexican bank, is planning to raise $150m in non-call 5 perpetual notes by the end of the month. The issuance of the subordinated bonds, rated BB by Fitch, is designed to fortify the bank’s capital base. Deutsche Bank is leading.