Mexico has said it will launch its planned 30-year local-currency denominated bond later this month. The sovereign is hoping to sell $180 million of the new bond on October 24. The bond, the longest-tenor domestic bond yet to be issued, is part of a strategy to move more of the country’s debt into the domestic market. Less frequent refinancing will also cut borrowing costs. Mexico first issued a 20-year domestic bond in 2003.
Category: Regions
Posted inDaily Brief
Colombia Central Bank Raises Benchmark Rate
Colombia’s Central Bank raised the benchmark overnight lending rate Friday, surprising the majority of analysts. It chose not to hold the rate, as expected, but raised it a quarter of a percentage point to 7%. The decision to raise the rate was prompted by higher-than-expected second-quarter growth of 6%. Last month the Bank also raised the interest rate 25 basis points on quickening growth. Higher interest rates should help keep inflationary pressures at bay. Inflation for the 12 months through August was 4.7%, up from 4.32% in July.
Posted inDaily Brief
Colombia To Re-auction Ecogas
Colombia is to re-auction Empresa Colombiana de Gas (Ecogas), the country’s largest gas distribution company, rejecting the $823 million offer made Friday by a group of six pension funds (AFPs) for the company’s assets. The offer, which fell short of the minimum set by the government, was made via a holding company called Transportadora de Gas del Interior (TGI). The new auction will be opened up to the private sector, including foreign bidders. The re-auction is set to take place in 45 days time.
Posted inMagazine
May the Best Banks Win
LatinFinance staffers picked over two dozen banks across Latin America and the Caribbean as the very best in the business. This is how we chose the winners.
Posted inDaily Brief
Correa Pulls Away
Former economy minister and leftist candidate for the Alianza País, Raphael Correa, has pulled away from the pack in the latest poll ahead of Ecuador’s elections on October 15. Correa won the vote of 26% of those surveyed, versus a 20% approval rating for left-of-center candidate, former vice-president León Roldós. Meantime, right-of-center Cinthya Viteri has seen her support fall further, from 13% to 11% and is now level with banana tycoon Alvaro Naboa. If no candidate wins more than 50% of the first-round vote on October 15, a second round is scheduled for November 26.
Posted inDaily Brief
AHMSA To Boost Production
Mexican steelmaker Altos Hornos de México (AHMSA) is to invest $827 million over the next three years to increase its production capacity by 40%. Last year the company produced 3.2 million tonnes of steel and had a turnover of $2.1 billion. The aim is to boost production to 4.6 million tonnes of steel a year.
Posted inDaily Brief
Shareholders Give Vitro Green Light
The shareholders of Mexican glass manufacturer Vitro have approved an increase in the company’s share capital via the sale of new securities worth $50 million. The company is hoping to reduce its $1.3 billion debt. Monterrey-based Vitro said it would issue 62.9 million series “A” shares at a prices of 8.75 pesos a share.
Posted inDaily Brief
Peru Sells Stake in Piura
Peru’s private investment promotion agency ProInversion has sold around 41 million shares, representing 39.95% of the share capital, in Empresa Eléctrica de Piura, an electricity company controlled by Endesa of Spain. The sale raised almost $15 million.
Posted inDaily Brief
Bavaria To Prepay $27 Million Bonds
Colombian brewer Bavaria, owned by Anglo-South African SABMiller, has offered to prepay $27 million worth of bonds three months ahead of maturity, on October 27. The seven-year bonds were due to mature 2007. Bavaria is also due to prepay $146 million of 10-year bonds on October 4. Last May it prepaid $500 million worth of bonds. SABMiller, which bought Bavaria last year for around $9 billion, has been aiming to improve the company’s debt profile.
Posted inDaily Brief
Spain’s Princess To Spend $198 Million In Mexico
Spanish hotel chain Princess is to invest $198 million in Mexico to build two five-star hotels in Playa del Carmen, on the Riviera Maya. Mexico is the company’s second-largest destination after Dominican Republic and Princess will target tourists in US, Canada and Spain to visit the Mexican resort.