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.
Category: Regions
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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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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.
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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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Ecuador Confirms Next Coupon Payment
Ecuador will make its next interest payment on its global bonds, due May 15, according to deputy finance minister, Fausto Ortiz. The sovereign will make an interest payment of $30.6m on its outstanding Global 2012 bonds after covering its domestic obligations, said Ortiz. Despite hinting at a possible debt default during his election campaign, president Rafael Correa has so far honored its foreign debt obligations.
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BBVA Bancomer Hybrids to Price Today
Mexico’s BBVA Bancomer has put out price guidance on its $1.1bn in hybrid securities, which it expects to price today, Thursday. For $500m worth of non-cumulative subordinated and non-preferred 15 non-call 10 Tier I notes (A1/BBB+), due 2022, guidance is at 140bp over Treasuries. For the €500m or more in cumulative fixed-to-floating rate subordinated preferred, 10 non-call 5 Tier II notes, due 2017, talk is at mid-swaps plus 45bp. The Tier I notes are and callable in 2017 and thereafter. In year 10 they switch to floating rate and step up 100bp from the price to be determined next week. The Tier II notes are due 2017 and callable in 2012. Credit Suisse, BBVA Securities and Deutsche Bank are joint-leads.
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Nortel Taps Barrios To Head Up CALA Region
Telecoms technology company Nortel has appointed Alvio Barrios to be the new president of the Caribbean and Latin America region (CALA), effective June 1, 2007. Barrios will report to chief executive Mike Zafirovski and will be based at Nortel’s Sunrise, Florida office. He will be responsible for sales, operations and marketing for the CALA region. Barrios replaces Martha Bejar, who is leaving the company.
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Peru 1Q Growth 7.2%
Peru’s ministry of finance said Wednesday that first-quarter growth is likely to come in at 7.2%, following estimated economic expansion of 5.3% in March. The second-quarter figures also look promising, according to MEF, with estimated increases of 7.5% and 6.1% in April and May, respectively.
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Cemex Seen Offering Value
Mexico’s Cemex is a surprise top corporate pick on the EMTA panel. The high grade stalwart’s recent hybrid issuance offers a significant pick up if priced to call, says Deutsche’s Milne. The perps with 5 and 10 year calls have large step-ups. “If you know Cemex, you know they never want to give investors or creditors any extra money,” says Milne. On a yield to call basis, they offer 50bp-100bp over Telmex or América Móvil. In sub-investment grade, she likes companies with restructured debt that are refinancing, like TGS, which issued Wednesday. High 7% to 8% on Argentina is seen as value. Holsberg tips the beef sector and CIE, which are also picks of Chang’s. Renfrew likes hybrid bank paper in Mexico and Brazilian airlines, TAM and GOL.
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Peru Raises $110.6m Through Domestic Reopening
Peru reopened its local 2020s bond issue to raise a total of 350m soles ($110.6m) in the local market on Tuesday, selling at a yield of 5.78%. Demand was heard at 550m soles. The sovereign had hoped to sell 280m soles ($88.5 million) but extended the sale in the face of the strong demand. Last month Peru raised 360m soles ($113m) from the tap of two of its local-currency bonds. The sovereign sold 270m soles in 2026s to yield 6.14% and 90m soles in 2046s to yield 3.25%. Demand for the paper was 448m soles and 274m soles, respectively. The government is authorized to sell up to 2.33bn soles of local-currency paper this year.