Colombia’s largest energy provider, state-controlled Interconexión Eléctrica SA (ISA), raised $46 million via the sale of bonds in the local market. The seven-year, inflation-linked bonds were sold to yield 4.84% above the IPC rate of inflation. The issue, which was managed by Corporacion Financiera Colombiana (Corficolombiana) and Correval was twice oversubscribed. The sale was the fifth tranche of a bond issuance program totaling $350 million, of which ISA has so far issued $243 million-worth of bonds.
Category: Regions
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Ara Goes To Market To Increase Liquidity
Mexican housing constructor Consorcio Ara made its global secondary share offering postponed at the end of May due to market volatility. Ara sold 48.3 million shares, representing 14.7% of the company’s stock, raising $229 million. Of the total shares sold, 16.9 million were offered in the domestic market and 31.4 million abroad. The offering included an optional extra of 6.3 million shares. The sale of the shares, offered by the company’s largest shareholders – Germán and Luis Felipe Ahumada – will increase liquidity. The sale of the domestic tranche was managed by Casa de Bolsa BBVA Bancomer. Merrill Lynch & Co. was in charge of the international tranche.
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Homex Names Sánchez New Managing Director
Homex, one of Mexico’s largest housing constructors, has named David Sánchez its new chief executive, effective October 1, replacing Gerardo de Nicolás who steps down to spend more time on strategic planning. Sánchez was formerly head of planning and finance at Infonavit, the largest, government-run home finance agency.
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Nicaragua Launches Geothermal Tender
Nicaragua’s Institute of Energy (INE), the country’s energy regulator, is to launch an exploration and production tender for three geothermal blocks. The government claims the blocks – Volcán Casita-San Cristóbal, Caldera de Apoyo and Volcán Mombacho – comprise the largest geothermal resources in Central America. The concession is due to be awarded next April. Nicaragua currently generates only around 20% of its daily energy from geothermal sources, but has the potential to generate much more, according to the government. The country has been struggling with an energy crisis this year and has faced increasing power outages.
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Mexico Gets Increase In IMF Voting Rights
Mexico has been awarded increased voting rights under International Monetary Fund (IMF) reforms, approved overwhelmingly by IMF members at the Fund’s annual meeting in Singapore. Mexico, whose quota in the Fund will increase from 1.2% to 1.4%, was one of only four countries to see an increase in voting rights as a result of being “clearly underrepresented” and to better “reflect their increased weight in the global economy”. Despite the vote in favor of reform by almost 91% of the board of governors of the Fund, many Latin American nations – such as Brazil and Argentina – voted against the proposals because they do not believe that, overall, the representation of developing economies is fairly represented in the Fund.
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Peru To Launch Tender For Michiquillay Mine
Peru is to due to launch the tender for its Michiquillay mine later this week. Private investment promotion agency ProInversión, on behalf of the government, is looking for investment of at least $700 million. Michiquillay, located in Cajamarca, close to South America’s largest gold mine Yanacocha, has reserves of copper, gold and silver.
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China And India Help Drive Latin American Growth
Latin America can thank the remarkable economic growth of China and India for around 10% of its total exports over the past 15 years, according to the World Bank’s chief economist Guillermo Perry, former finance minister of Colombia. In particular, over the past three years Latin American nations have benefited from the explosive growth of these two economies and their almost insatiable need for raw materials such as copper and oil to power their economic expansion.
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Televisa Denies New Bid For Univision
Mexican broadcaster Televisa has denied it will put forward a new offer for US Spanish-language broadcaster Univision. Grupo Televisa lost out in bidding to a group of investors that included Texas Pacific Group and Thomas H Lee Partners. The latter bid $12.3 billion for Univision following the $12 billion bid by the Mexican broadcaster.
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P&G Files Against Panamanian Xetal
Multinational Proctor & Gamble has filed a million-dollar lawsuit in New York against Panamanian company Xetal for trademark infringement. The company, the largest producer of consumer goods in the US, claims Xetal has pirated some of its products ranging from medicines to toys and clothing. Xetal is owned by businessman Fred Harrick.
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Belize To Restructure Debt
Belize is to restructure its foreign debt and will likely swap its existing bonds and commercial loans for a single, amortizing bond by the end of this year. Currently, the country has six outstanding international bonds totaling $338 million, with most held by a group of no more than 30 creditors. It also owes $253 million in commercial loans. Of Belize’s total $1.1 billion debt burden, only $116 million is accounted for by domestic debt. Multilateral and bilateral loans account for $371 million. Last month ratings agency Standard & Poor’s downgraded Belize foreign currency credit rating from CCC- to CC, just two notches above a default rating.