Chilean investors favored Peru and Colombia as their top destinations in the region in the first half of the year, according to the Santiago Chamber of Commerce. Peru, the top destination attracted $270 million worth of investment, representing 27% of the total. Colombia captured $230 million of the $1.1 billion total invested in the region, followed by Brazil which ended up with 18% or $150 million. Neighboring Argentina, which has traditionally attracted large amounts of Chilean money, pulled in only $99 million, a dramatic fall from last year’s figure of $166 million. Most of Chile’s outward investment went into the energy and retail sectors. Overall, Chile invested $4 billion outside the country during this period, with most going to the US.
Category: Regions
Enel Enters Panama Electric Market
Italian electricity company Enel is to increase its holdings in Central America through a stake in Panamanian hydroelectric plant Fortuna. Enel has agreed to pay $150 million for a 24.55% share in Fortuna via the ownership of its holding company Hydro Quebec International Latin America. Fortuna is one of Panama’s leading electricity companies, generating around 30% of the country’s power. According to Enel “the Panamanian market is part of the larger Central American power market, which is experiencing extensive development characterised by economic and regulatory integration”. Enel also owns hydroelectric plants in Costa Rica, Guatemala and Chile.
Deutsche Bank Mexico Appoints Betancourt As Trading Head
Deutsche Bank Mexico has recruited Luis Antonio Betancourt Barrios from JP Morgan to join the Bank’s global markets division as head of trading for Mexico. Betancourt will be based in Mexico City and report jointly to Cristian Binaghi and Sergio Kostek, managing directors and co-heads of Latin America trading, and Tito Vidaurri, managing director and country manager for Deutsche Bank Mexico.
Walmex Follows Famsa To The Bank
Wal-Mart de México (Walmex), the subsidiary of the US retail giant, it to apply to Mexican authorities for a banking license, following a trend first set by local retailer Elektra. Mexican Grupo Salinas set up Banco Azteca in 2002 to complement its network of electro domestic outlets operated by the group under the brand name “Elektra.” And local retailer Famsa has just been granted a license by the banking regulator to set up its financial arm, Banco Ahorro Famsa, which is due to start operating at the start of next year. Another retailer, Coppel, is awaiting approval of a banking license.
Colombia July Inflation 0.41%
Colombia’s inflation in July rose by 0.41%, month on month, according to government figures. This compares with a price rise of 0.05% for the same month last year. Consumer prices were driven up by the 1.06% increased costs in transport and communications. Food prices rose 0.52%. Cumulative inflation for the year is running at 3.44%, slightly down on last year’s rate of 3.98% as at the same period. Inflation for the 12 months through July stood at 4.32%, compared with 4.91% for the same period last year.
Colombian Airport Concession Bidding Due To Close
The bidding for the concession to run two airports on Colombia’s Caribbean islands of San Andrés and Providencia are due to close today, August 3. Six groups of companies have bought the bidding documents: Corporación América, Estudios Técnicos Universal, Odinsa, Ramón Pereira Visbal, Stratis and Valores y Construcciones. The concession contract is set to be for 20 years and foresees investment of around $19 million in the first few years. Last month, five groups of companies presented bids for the concession to run the Bogotá’s El Dorado international airport. These included three of the companies hoping to bid for the Caribbean airports: Corporación América, Stratis, and Odinsa. The concession for El Dorado is due to be awarded by the end of this month.
Ecuador Economy Grows 5.6%
According to Central Bank figures, Ecuador’s economy expanded 5.6% in the first quarter of the year, against first-quarter growth of 4.6% for the same period in 2005. Expansion was driven by the oil sector, which grew 2.7%, and by record growth in the fishing sector of 43.3% compared with the previous year. Manufacturing expanded by just over 9% during the first three months of the year while retail rose almost 6%. Ecuador’s economy grew by 4.7% last year and growth of 3.9% is forecast for this year.
Isagen Sale Ready To Go
Colombia’s government says it is ready to privatize 20% of power generator Isagen as soon as market conditions allow. The government is hoping to raise $123 million from the sale. The company recently succeeded in swapping a large part of its US dollar debt for local-currency debt, thereby reducing its exposure to exchange-rate fluctuations. The government is hoping to emulate the path taken by state-controlled electricity distributor Interconexión Eléctrica SA (ISA), which was partially privatized in 2000 and which has become a key regional player in the sector, expanding into Panama, Peru, Ecuador, Bolivia and Brazil.
LAB’s Asbún Flees To US
Ernesto Asbún, former president of flagship Bolivian airline Lloyd Aéreo Boliviano (LAB), has fled from Spain to the United States in the face of extradition requests from Bolivia to Spain. Asbún arrived in Spain at the beginning of July from Argentina after crossing the border from Bolivia. He is wanted in Bolivia on charges of financial mismanagement of the airline, which was put under the workers’ control in June. Asbún holds 50.4% of LAB’s stock; the remaining stake is owned by the government and other minority shareholders. The airline is currently facing economic crisis with mounting debts of around $160 million.
OLA Delays Decision
Colombia Móvil, known as OLA, the country’s third-largest mobile phone company, has delayed the deadline for deciding a strategic partner from August 3 to August 11. The company is due to sell 50% plus one share of its capital to an investor in return for an injection of capital. OLA, owned by Colombia’s two largest telcos – Empresa de Telecomunicaciones de Bogotá (ETB) and Empresas Públicas de Medellín (EPM) will pick from three companies that pre-qualified: Luxembourg-based Millicom, Caribbean-based Digicel Group and Chile’s Entel.