Peru’s state-run oil concern Petroperú and its Colombian counterpart – Ecopetrol – have signed a cooperation agreement that embraces the growing area of alternative biofuels energy, hydrocarbons exploration, production and refining. The two companies signed a five-year Memorandum of Understanding on Tuesday and will establish an executive committee to analyze specific joint agreements. No details of amounts to be invested were offered.
Category: Regions
Posted inDaily Brief
LatAm, Caribbean Sovereigns To Increase Borrowing
Gross long-term borrowing by 25 Latin American and Caribbean sovereigns should grow to $427 billion this year, up a modest 5%-6% on last year, according to the third annual debt issuance survey conducted by ratings agency Standard & Poor’s. The report also highlights the declining role of official sector funding as sovereigns increasingly access the markets directly to issue debt. Moreover, “Gross official lending (from both bilateral and multilateral lenders) to regional sovereigns is likely to total only US$17 billion in 2007. Around 96% of government borrowing in 2007 should originate with local and external commercial sources, similar to the level in 2006,” continues the report. Brazil will once more be the region’s largest sovereign borrower.
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Sarukhan New Mexican Ambassador To US
Arturo Sarukhan has been confirmed as the new Mexican ambassador to the US, one of the country’s key diplomatic postings. Sarukhan, who was formerly head of the Mexican consulate in New York before joining Felipe Calderón’s campaign team, holds a masters in US foreign policy from Johns Hopkins University. Prior to becoming a career diplomatic, Surukhan was executive secretary of the non-governmental Bilateral Commission on the Future of Mexico-United States Relations (1988-89). The Commission, funded by the Ford Foundation, comprised Mexican and US representatives from the private sector whose objective was to lay the groundwork for bilateral relations between the US and Mexico.
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Emgesa To Issue $76.5 Million Bonds
Colombian power generating company Emgesa, part of Spain’s Endesa, is to issue $76.5 million worth (170 billion pesos) of local bonds according to the company. The proceeds raised from selling the 10-year bonds will be used to pay down existing debt. Emgesa offered to pay investors a maximum yield of the consumer price index plus 5.30 percentage points. Citigroup in Colombia will handle the sale.
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Exito Takes Control Of Carulla
Colombian largest food retailer Almacenes Exito has acquired a further 52.4% of rival Carulla Vivero to take its total stake to 72.2%. Exito bought around 18.5 million shares of Carulla for $292.4 million in an open auction that ended on Friday to add to the 19.8% of Carulla it already owned. Meanwhile, chief executive of Exito, Gonzalo Restrepo, said his company would launch another tender offer for the remaining 27.8% shares in the company, most likely in April.
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Comcel Offers $45 Million CP
Colombia’s largest wireless phone operator Comunicación Celular (Comcel), part of Mexican cell phone operator América Móvil, was due to sell $45 million worth (100 billion pesos) of commercial paper on Tuesday, denominated in pesos. Comcel offered to pay a maximum yield of 8.40% on the 90-day commercial paper. The proceeds of the sale will be used for working capital, said the company ahead of the transaction. The sale was led by BBVA’s Colombian unit. The issue is part of a larger debt program worth 1 trillion pesos ($450 million), approved last May. Last November, the company sold $66 million (150 billion pesos) of the 90-day paper to yield 7.9%, which matured on Monday.
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Ashmore Energy, Suez Agree Energy Deals
Global energy company Ashmore Energy International (AEI) and Colombian natural gas distributor Promigas have agreed to buy 100% of Peruvian natural gas distribution business Calidda from French power company Suez. The acquisition adds to AEI’s energy infrastructure assets in the region. AEI is a majority shareholder in Promigas. Meanwhile, AEI has entered into an agreement to sell its 51% indirect stake in Bahia Las Minas, a Panamanian generation company, to Suez Energy International. AEI agreed to the divestiture of the company to comply with Panama’s anti-trust laws after it bought Prisma Energy last September. It also owns electrical distribution company Elektra Noreste. AEI gave no financial details of the transactions.
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PRI Elects Paredes Party Leader
Mexican political party PRI has elected Beatriz Paredes as the president of its national executive committee. Paredes beat off former senator Enrique Jackson to become the replacement for incumbent party leader Mariano Palacios. Paredes was formerly the governor of the state of Tlaxcala. The PRI dominated Mexican political life for over 70 years but has been in decline since it lost the presidency to Vicente Fox and his PAN party in 2000. It came third in last year’s general elections behind Andrés Manuel Lopez Obrador’s PRD. The challenge facing Paredes is to transform the PRI into a credible party in the eyes of Mexican voters and to build alliances with the current administration.
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Colombia Foreign Minister Resigns
Colombia’s foreign minister, Maria Consuelo Araújo Castro, resigned on Monday following mounting pressure to step down following the arrest of her brother, Senator Alvaro Araújo Castro, on charges of links to right-wing paramilitary groups and involvement in kidnapping. The minister’s father, Alvaro Araújo Noguera, a former provincial governor, is also under suspicion and may be investigated. President Alvaro Uribe has named Fernando Araújo Perdomo (no relation to the former foreign minister), recently freed after six years of captivity by the FARC, as her replacement. He had served as Development Minister under the administration of Andrés Pastrana.
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Correa Appoints Pólit Attorney General
Ecuador’s president, Rafael Correa, has confirmed the appointment of lawyer Carlos Pólit, a member of the opposition party Sociedad Patriótica (PSP), as his new attorney general. Pólit is closely allied to former president Lucio Gutiérrez, serving in his administration.