The Colombian government and other shareholders have set a minimum price of $185 million (425.9 billion pesos) for the controlling interest (53%) in local steelmaker Acerías Paz del Río (APR), according to Colombian guarantee fund Fogafin. APR, which is the only integrated steelmaker in Colombia, has been in receivership since 2003. The government is expected to sell off the stake before the end of this year or early next year. Those interested in buying the company include Arcelor Mittal, Brazil’s Gerdau and Argentina’s Techint, say APR.
Category: Regions
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Banxico Holds Benchmark Rate At 7%
In line with the market’s expectations, Mexico’s central bank, Banco de México (Banxico), kept the benchmark interest rate unchanged 7%, Friday, holding it for the eighth month in a row. The uptick in annual inflation seen in September and October eased slightly in November, falling from 4.29% to 4.1%. Analysts believe Banxico will start to ease up on interest rates at the start of next year as growth slows and inflation falls back to the government’s target of under 4%.
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Cemex Extends Offer Deadline
Mexican cement producer Cemex said it is to extend the deadline for its offer for Australian building materials group Rinker from the end of December until January 27. This follows shareholder approval last week for its bid of $11.7 billion for Rinker. The bid has been rejected by Rinker’s board, which unanimously recommended to shareholders they reject Cemex’s offer, saying it was “opportunistic” and “far too low”.
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Siemens Beefs Up South Of The Border
German conglomerate Siemens is to close two plants in the United States in favor of moving production to Mexico. The US unit of the firm said that the closures are expected in the third quarter of the year and will affect around 700 people. The plants, located in Ohio, produce circuit breakers and other components.
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Bolivia And Venezuela Sign Energy Agreement
Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) and Petróleos de Venezuela (PDVSA), the state-run oil concerns of Bolivia and Venezuela, respectively, have set up a joint venture company – Petroandina Gas. The company, which is 51% owned by YPFB and 49% by PDVSA, will be in charge of operating two liquid gas plants in Bolivia for $170 million. The plants have a projected operating capacity of 680 million cubic feet per day.
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Fitch Rates Panama AES Notes
Fitch Ratings has assigned a preliminary rating of BBB- to hydroelectric generation company AES Panama’s proposed issuance of $300 million in senior unsecured notes. The 10-years notes will have a bullet amortization, aimed at improving the company’s debt-service payments and extending the final maturity. The funds raised will be used to pay down debt.
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Titularizadora Colombiana Sells Fixed-Rate Peso TIPs
Titularizadora Colombiana – Colombia’s answer to Fannie Mae – successfully sold $118 million-worth (268,000 billion Colombian pesos) of its residential mortgage-backed securities or TIPs (títulos hipotecarias) Thursday, for the first time backed by fixed-rate mortgage loans in pesos. To date, Titularizadora has issued TIPs denominated in UVRs – an inflation-indexed currency unit. The TIPs were issued in two series, maturing in 2016 and 2021, and paying a fixed rate of 8.90% and have been rated AAA by Duff & Phelps. The loans backing the securities are originated by local banks Colpatria and Davivienda. The issue was 2.67 times oversubscribed, according to the issuer.
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Peru Holds Benchmark Rate At 4.50%
As expected, Peru’s Central Bank held its benchmark interest rate at 4.50% Thursday. The Bank said it had decided to hold the rate unchanged due to the benign inflationary environment. Consumer prices fell last month by 0.28%, taking inflation for the 12 months through November to 1.54%, at the bottom end of the government target range. Meanwhile, economic activity – driven by domestic demand – grew 6.9% in October, said the Bank, taking growth for the first 10 months of the year through October to 7.4%.
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América Móvil Builds Out Peso Curve
Following the sovereign’s lead, América Móvil, the Mexican mobile heavyweight, launched 8 billion pesos ($734 million) in a 30-year 144a issue through HSBC and UBS. The spread was 80bp over the government 2036, inside guidance, and the transaction was heard well oversubscribed. In October, the Mexican government was the first in the region to sell a fixed-rate local currency 30-year, setting a benchmark for longer-dated corporate paper. América Móvil opened up the peso global market with a 5 billion peso 10-year through Credit Suisse in September 2005. It was followed by sister company Telmex in January. América Móvil is cash rich, so proceeds are likely either for refinancing or an acquisition.
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Panama’s ASSA Increases Nicaragua Stake
Panamanian insurer ASSA Compañía de Seguros, owned by Grupo ASSA, has agreed to increase its stake in Nicaragua’s Banco de Finanzas, which operates in Nicaragua and Panama, from 21% to 55.2%. It will also acquire 62.8% of insurer Metropolitana Compañía de Seguros. No financial details of the transaction were revealed.