The International Monetary Fund has praised Peru’s economic performance and offered a vote of confidence in President Alan García’s second attempt to run the Andean nation after disastrous consequences the first time around. “The authorities’ program is yielding significant dividends,” said the Fund. The comments came after a mission to the country to carry out the first review under its 25-month Standby Arrangement. Meanwhile, figures released Tuesday by the national statistics bureau INEI show that GDP expanded by 5.9% in March, compared with the same month in 2006, while growth for the first quarter reached 7.46%, year on year. The government is looking for growth of around 8% this year.
Category: Regions
Posted inDaily Brief
Xignux Returns to Peso Market
Mexico’s Xignux, the Mexican electrical apparatus provider, is back in the market with a deal through Banamex. The double A issue from a MXP2.2bn revolving program has a partial guarantee from the underwriter. It will price over 28-day TIIE and mature in May 2014.
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Guatemala Remittances To Reach $4.2bn
Remittances to Guatemala for the first quarter of this year reached $886.7m, an increase of 11.8% compared with the same period last year, according to the central bank. Economists predict that remittances by families living abroad – most in the US – will total $4.2bn by the end of the year.
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Asur Chairman Taking Control
Fernando Chico Pardo, the chairman of Mexican airport operator Aeroportuario del Sureste (Asur), launched an unsolicited tender offer Monday for a majority share of the company’s outstanding stock. The offer to buy 42.6% of the company at a price of 56 pesos ($5.19) for each ordinary share expires on 12 June. Earlier in the day, the board of Asur – in a filing with the stock exchange – said it considered the offer a fair one for investors. Chico Pardo is the founder and president of Mexican private equity firm Promecap, which bought a 24.5% stake in ITA, Asur’s strategic partner, in 2004. Asur is publicly traded on the New York Stock Exchange as well as in Mexico and was the first Mexican airport group to be privatized.
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Deutsche Poaches from Merrill in Mexico
Deutsche Bank has made five senior hires for its global markets division in Mexico City. Francois Jaubert Luengas joined as head of equity sales, Marco Antonio Rojo is appointed equities sales trader, while Monica Cardenas is on board as an equities sales advisor. They report to Rupert Hope, head of EM equity sales in the Americas and were previously with Merrill Lynch Mexico. In addition, Rodolfo Jose Rastellino has been appointed head of sales for financial institutions in the capital markets and client coverage group, reporting to Raúl Martínez-Ostos, head of capital markets and client coverage for Deutsche Bank Mexico. Carlos Hernandez also joined the team as a Mexican debt structurer, reporting to Gonzalo Barbon and Federico Infantino, co-heads of EM structuring for Latin America. Rastellino was previously head of financial institutions & public sector at ABN, while Hernandez joins from Banamex, where he was responsible for structuring and derivatives.
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Mexican Railroad Operator Raises $165m
Kansas City Southern de Mexico, the Mexican subsidiary of the US railroad company Kansas City Southern Railway, priced Monday $165m in 7 non-call 4 bonds at par to yield 7.375%. The notes, rated B2 by Moody’s following a Monday upgrade, priced at the tight end of 7.375%-7.500% guidance. Proceeds were used to call 12% of 2012 bonds. Goldman Sachs led.
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Morales Oversees Transfer Of Petrobras Refineries
Just over a year after announcing his plans to nationalize Bolivia’s energy sector, President Evo Morales attended a ceremony Saturday which saw the handing back of two of the country’s refineries previously owned by Brazil’s Petrobras. Last week, after much wrangling, Bolivia agreed to pay $112m to the Brazilian state-owned company in compensation for the two refineries reclaimed as part of the nationalization program. Petrobras bought the assets for $104m in 1999 from Bolivia’s YPFB as part of a privatization initiative.
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BBVA Bancomer Prices Euro Tranche
Mexico’s BBVA Bancomer priced Friday €600m in cumulative fixed-to-floating rate subordinated preferred 10 non-call 5 notes, due 2017, at mid-swaps plus 45bp, in line with guidance issued Wednesday. The Tier II notes are the second part of a hybrid offering. The first half was denominated in dollars and was priced Thursday.
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Peru March Trade Surplus Widens
Peru’s trade surplus continued to widen in March, figures from the Central Bank show. Exports in March exceeded imports by $665m, up from $473m in February, and 46% up on the same month last year ($455m). Total exports rose to $2.06bn, up 19% year on year, set against imports of $1.40 billion, 9% up on the same month last year. The March figures mean that the trade surplus for the first quarter was $1.42bn, compared with $1.25bn for the same period in 2006.
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Ecuador Banking Reform Bill Heads To Congress
According to local media, Ecuador’s President Rafael Correa is planning to submit a bill this week to Congress to regulate the banking sector and lower the cost of lending by government intervention and interest rate control. Correa has been in conflict with the private banks and the banking regulatory body, the SBS, since outlining his plans of state control over the cost of money which the government claims is hampering national productivity. Last week Correa called on the head of the SBS, Alfredo Vergara, to step down.