Telefonica del Peru, a subsidiary of Spain’s Telefonica, reported a 39.2 percent increase in profits in the third quarter to $36.2 million. The company, which controls the fixed line market and competes principally with America Movil in the mobile phone market, said the increase was a result of the purchase of a competitor, Telefonica Empresas Peru.
Category: Regions
Posted inDaily Brief
Cencosud Offers $271 Million For 25% Of Exito
One of Chile’s largest retailers, Cencosud, has acquired a 24.5% stake in Colombia’s largest supermarket chain Exito for $271 million. The Chilean company offered to buy 51.2 million shares from investor Grupo Toro, at 12,500 Colombian pesos a share. Grupo Toro has to give other Exito shareholders 90 days the option to buy the shares before it can sell them to Cencosud.
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Panama Canal Vote Cheers Investors
This weekend Panamanians are likely to vote “yes” in a national referendum on the proposed $5.25 billion plan to expand the country’s Canal to accommodate so-called “post-Panamax” vessels. A research note from investment bank Morgan Stanley expects Panama’s positive debt outlook to be bolstered by a “yes” vote and that it could “settle in at sub 100 bp levels for five-year CDS”. The Bank commented that Sunday’s vote is broadly seen as a referendum on the Torrijos administration, which is currently enjoying an approval rating of over 65%. Morgan Stanley added in the note that it expected the country to grow by over 7% this year and keep inflation contained at around 2%.
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Palacio Appoints Economy Minister Number Six
As Ecuador awaits the final results of the first-round of its presidential elections, the volatility that has characterized the country’s political scene continued with the resignation, Tuesday night, of its economy minister Armando Rodas, who left citing personal reasons. Rodas, who was replaced by Banco del Estado president José Jouvín, had only been in the post for three months and was the fifth economy minister to serve under interim president Alfredo Palacio. The first economy minister was current presidential candidate Rafael Correa, currently in second place with 23.2% of the votes with 88% of the ballots counted. Banana magnate Alvaro Noboa continues to lead, having polled 26.3% of the public’s support. A second round of voting is scheduled for November 26, which will see Correa and Noboa in a run-off for president.
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Banorte Pushes Out Mortgage Terms
Mexico’s largest locally owned bank, Grupo Financiero Banorte, is to offer 30-year residential mortgages, the longest term available in the country up until now, according to the Bank. Banorte, ranked fifth in the local market in terms of assets, hopes to attract customers through innovation in a market dominated by foreign banks. Mexico’s housing market has taken off recently and the mortgages on offer in the market today were almost unheard of not that long ago.
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Fitch Puts Metrofinanciera Trust Notes On Rating Watch Negative
The $60 million securitized notes issued last year by Mexican property developer Metrofinanciera (Metrofinanciera Trust Series 2005-2) have been put on rating watch negative by ratings agency Fitch. The notes are currently rated BBB. The ratings action is a result of the “deterioration in the collateral supporting the transaction”, according to the Agency, caused by the “ongoing negative carry” resulting from an insufficient portfolio yield on the underlying loans to meet overall transaction costs. The notes securitize construction bridge loans originated by Metrofinanciera.
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Convermex Loan In Syndication
Grupo Convermex, the Mexican producer and distributor of plastic disposable tableware products, is out with a $135 million equivalent dual-currency loan through Citigroup. It includes a $100 million equivalent piece in pesos with a margin of 350 basis points over TIIE, amortizing with a five-year average life. There is a $20 million piece in dollars with the same price and tenor and a $15 million equivalent three-year revolver tranche in pesos. GE Capital has joined the syndicate and the transaction should be wrapped up in the first week of November. Merrill Lynch Global Private Equity is the sponsor. It announced this month that it had acquired the company from JP Morgan Partners and other investors. Merrill Lynch and JP Morgan Securities were exclusive financial advisors to buyer and seller, respectively.
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Peru GDP Grows 9.2%
Peru’s GDP expanded by 9.2% in August, year on year, the second highest monthly growth this year according to the institute of national statistics and data (INEI). Construction showed the strongest climb during the month, up by 21.4%, followed by the agri-fisheries sector, which expanded by 11.6%. August’s growth figures were up from July, when the economy expanded by 9.04% and took the increase for the eight months through August to 7.25%. Annual expansion was 7.29%. Last year, Peru recorded growth of 6.5%; the target for economic expansion this year is 6.6%.
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Showdown For UN Seat
The battle between Venezuela and Guatemala for the fifth available non-permanent seat in the United Nations Security Council will continue in New York today, Tuesday. After 10 rounds of voting Monday there was still no clear winner to replace the seat’s current occupant, Argentina, when it steps down on December 31. Although Guatemala managed to beat Venezuela in each round of voting, it failed to secure a two-thirds’ majority needed to win the seat. The battle between the two Latin American nations has been billed by many as a battle against the will of the US, which has been openly backing Guatemala’s bid. Behind the scenes, negotiations are taking place to propose an acceptable compromise candidate from the region – most likely either Uruguay or Dominican Republic. The 10 non-permanent seats on the UN Security Council have a two-year tenure (two seats are allocated for Latin America and the Caribbean region). Only five of the 10 are up for renewal at the end of this year. The permanent members of the Council, who enjoy the power of veto, include the US, Russia, the UK, France and China.
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Correction
In Monday’s brief, under the heading “Ecuador Run-Off Set To Polarize Nation”, Álvaro Noboa was named incorrectly as Álvaro Naboa.