Peru tapped its local currency 2026 bonds on Monday to sell $62.8 million worth (200 million soles) of the domestic paper. The funds raised will be used to meet non-financial public sector financing needs. The bond, which carries an 8.20% coupon was priced above par to yield 6.30%.
Category: Regions
Posted inDaily Brief
Peru To Scrap Stock Market Tax Exemption
Peru is set to remove tax exemptions on capital gains in the stock market and interest on bonds, according to the country’s finance minister, Luiz Carranza. From 2009, a tax rate of 5% will be applied to capital gains on stock investments. However, capital gains and interest on government-issued paper will remain tax exempt.
Posted inDaily Brief
Peru Trade Surplus Widens
Preliminary figures from Peru’s Central Bank show that February’s trade surplus widened to $473 million, 10% up on the same month last year. Total exports rose to $1.83 billion, up 26% year on year, set against imports of $1.36 billion, 32% up on the same month last year.
Posted inDaily Brief
CFE Offers $157 Million Of Bonds
Mexico’s state-owned electricity company – Comisión Federal de Electricidad (CFE) offered $157 million worth of 10-year notes on Friday. According to the CFE, the bonds were sold to yield 0.345 percentage points above 91-day Treasury bills, or Cetes. The offering was four times oversubscribed, said the issuer.
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Peru Banks Ratings Placed On Review
Banco de Credito del Perú and BBVA Banco Continental have benefited from the improving conditions of the sovereign rating of the Republic of Peru and have both had their Moody’s B1 long-term foreign currency deposit ratings placed on review for possible upgrade. The Agency also placed on review for possible upgrade the Ba2 rating for the $120 million in subordinated notes maturing in 2021 issued by Banco de Credito del Perú’s Panama branch.
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Cemex Bid Earns Australian Regulator Approval
Mexican cement maker Cemex has received approval from Australian regulators for its hostile takeover bid for local building materials firm Rinker, according to Bloomberg. Cemex’s $11.7 billion offer last November was rejected by the company as “opportunistic” and “far too low”. Cemex is still awaiting approval from US regulators. The Mexican firm may have to sell some of its US assets to comply with US anti-trust requirements.
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Mexican Senate Fails to Confirm Hurtado
Mexico’s Senate has failed to confirm the nomination of Carlos Hurtado to the vacant seat on the board of directors of Banxico, Mexico’s Central Bank. Hurtado was nominated by President Felipe Calderón. Opposition lawmakers voted 68 to 45 to block the appointment because of Hurtado’s former position as deputy finance minister in charge of spending under Vicente Fox’s administration. The five-member Banxico board has had a vacant seat since the end of last year.
Posted inDaily Brief
Jamaica Sells $350 Million Bonds
Jamaica decided to test the waters of the international debt markets Thursday and sold $350 million of bonds maturing in 2039. The bonds came in tighter than the 8.25% guidance at 98.592 to yield 8.125%, equivalent to a spread of 346.7 basis points over U.S. Treasuries. Citi led the offering.
Posted inDaily Brief
Moody’s To Review Peru’s BB+ Rating
Moody’s Investor Service has placed Peru’s BB+ foreign currency rating on review for a possible upgrade. Peru’s sovereign debt credit rating got a boost on Tuesday after Fitch Ratings changed its outlook on the country’s ratings to positive from stable.
Posted inDaily Brief
Ecuador Constitutional Reform Continues To Provoke Conflict
Ecuadorian police have intervened in the continuing conflict between the country’s electoral court, TSE, and Congress over a proposed referendum on constitutional reform. The TSE suspended the political rights of 57 lawmakers after they voted to remove the Court’s president, Jorge Acosta. Correa has made constitutional reform a priority since coming to power in January. Shortly after his inauguration he called for a March 18 referendum to let the general public decide whether they want to rewrite the country’s constitution. Meanwhile, economy minister Ricardo Patiño has reportedly signaled that Ecuador will honor the second interest payment of $30.6 million on its global bonds due on May 15. Despite much talk of debt restructuring and even hints at a default by Correa during the election campaign and immediately after taking power, the government has so far met its foreign debt obligations.