IFC, the private-sector arm of the World Bank Group is investing up to $50 million for a 19% stake in Mexican infrastructure firm Infrainvest, a subsidiary of local constructor ICA. Atul Mehta, IFC’s director for Latin America and the Caribbean, commented: “IFC is partnering with ICA in Infrainvest through this equity investment in order to enhance the company’s ability to respond to Mexico’s growing infrastructure investment needs”.
Category: Regions
Posted inDaily Brief
Slim Takes Number Two Spot
Mexican business tycoon Carlos Slim Helu, owner of Mexican telcos América Móvil and Telmex, has been named the second-richest man in the world by Forbes. Slim, the son of Lebanese immigrants to Mexico, moves ahead of US investor Warren Buffet and behind Microsoft’s Bill Gates. Slim is estimated to have personal wealth totaling $53.1 billion – not far behind the $56 billion amassed by Gates.
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Panama Replaces Canal Minister
Panama’s minister responsible for the Canal has been replaced on the eve of the inauguration of its historic expansion program. Ricaurte Vásquez, chairman of the Panama Canal Authority (CAP) has been replaced by the former comptroller general, Dani Kuzniecky. Vásquez had served as Panama’s economy minister from 2004 until 2006 when he was asked to take control of the Canal portfolio.
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Peru Raises $113 Million From Local-currency Taps
Peru raised $113 million (360 million soles) from the tap of two of its local-currency bonds. The finance ministry said it sold 270 million soles in 2026s to yield 6.14% and 90 million soles in 2046s to yield 3.25%. Demand for the paper was 448 million soles and 274 million soles, respectively. The sovereign last tapped its 2026 issue, which carries a coupon of 8.20%, in March. Then it raised $62.8 million (200 million soles) of the domestic paper, selling above par to yield 6.30%. The inflation-indexed 2046 paper carries a 3.63% coupon. The government is authorized to sell up to 2.33 billion soles of local-currency paper this year.
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Bolivian Senate Approves Energy Contracts
Bolivia’s opposition-controlled Senate has approved the new energy contracts drawn up with foreign oil and gas companies operating in the country. The new contracts were prepared following last May’s announcement by the government that it was nationalizing the country’s energy assets. They have since been the subject of intense criticism from the political opposition and have been the cause of several high-profile resignations in the government’s energy team.
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Central American Refinery Tender Slated For November
The delayed tender offer for the $6.5 billion mega-refinery for Central America is to be launched in November, according to a statement by Guatemalan leader Oscar Berger. The site of the mega-project, part of the Mesoamerican Energy Initiative, is to be decided by the investors, but will likely be in Guatemala or Panama. The project aims to help Central American economies reduce their energy costs. Mexico, which is due to supply around two-thirds of the crude to the refinery via its state-run oil company Pemex, will benefit from the extra refining capacity and cheaper gasoline on its doorstep. Investors who have already expressed an interest in the project include oil companies such as Petrobras, Chevron-Texaco, Conoco-Phillips, Occidental Petroleum, Shell and British Petroleum and investment banks Deutsche Bank, Scotia Capital, Banamex-Citigroup and Mitsubishi.
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Ecuadorians Likely To Vote For Constitutional Reform
The majority of Ecuadorians will vote in favor of constitutional reform in Sunday’s referendum, according to a poll released on Tuesday. Cedatos-Gallup International revealed that 63% of those balloted said they will vote “yes” on April 15 in support of President Rafael Correa’s proposed reform process while only 20% will oppose the plan. Correa has said he will consider stepping down from the presidency if the public decide against proposals to rewrite the constitution. The president has made constitutional reform a priority since coming to power in January.
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Cemex Sweetens Rinker Bid
Mexican cement producer Cemex has sweetened its hostile bid for Australian building materials company Rinker. The $14.2 billion offer has been accepted by Rinker’s board who have recommended that shareholders accept the offer “in the absence of a superior offer”. Cemex originally offered $11.7 billion for Rinker last October, a bid that was described as “opportunistic” and “far too low” by the Australian firm’s board. The Mexican firm recently received approval for its offer from US regulators after it agreed to sell off certain assets in the US to conform to anti-trust regulation.
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Peru To Tap Local Currency Bonds
Peru planned to reopen two of its sol-denominated issues on Monday, hoping to raise $75 million (240 million soles) from the sale of local-currency paper – 180 million soles in 2026s and 60 million soles in 2046s. The sovereign last tapped its 2026 issue, which carries a coupon of 8.20%, in March. Then it raised $62.8 million (200 million soles) of the domestic paper, selling above par to yield 6.30%. The inflation-indexed 2046 paper carries a 3.63% coupon. The government is authorized to sell up to 2.33 billion soles of local-currency paper this year.
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Bancolombia Launches Public Tender Offer For Banagrícola Shares
Colombia’s largest financial institution, Bancolombia, has launched a public tender offer – via its subsidiary Bancolombia (Panamá) – simultaneously in El Salvador and Panama to buy not less than 53.1 % and up to 100% of the common shares of Banagrícola. Earlier this month the bank announced it had secured loans totaling $590 million as part of the financing for its acquisition of the Salvadorian bank. Bancolombia bought Banagrícola last December for around $900 million. Earlier, the bank issued a statement saying that it had obtained all the necessary authorizations for the acquisition.