Peruvian gold mining company Yanacocha has sold $100 million of bonds in the local market. The bonds were issued in two series, each with a maturity of 10 years. The first series, totaling $58 million, were sold with a fixed coupon rate of 7%; the second, totaling $42 million, were sold with an interest rate of Libor plus 1.4375%. Yanacocha, which produces around half of Peru’s gold output, is owned by Newmont Mining Corp of the US. It is Latin America’s largest gold producer. The bonds were placed by local firm Credibolsa.
Category: Regions
Posted inDaily Brief
Guatemala Foreign Minister Steps Down
Guatemala’s foreign minister, Jorge Briz, is to step down from his post possibly to seek elected office in next year’s November elections. Briz has served as foreign minister since the start of 2004. President Oscar Berger, a close friend of Briz, denied that the minister was stepping down because of disagreements with vice-president Eduardo Stein over the handling of certain diplomatic matters. Deputy minister Juan José Cabrera will also resign his post. Possible replacements for the post of foreign minister include: Gert Rosenthal, Marta Altolaguirre and Francisco Villagrán De León.
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Colombia To Privatize 20% Of Ecopetrol
Colombia’s government has finally confirmed its plans to sell off 20% of the country’s largest company, oil concern Ecopetrol. In accordance with national privatization law, the stake will first be offered to the “solidarity” public sector comprising: unions, workers pension funds, and cooperatives. The sale of all or at least part of the company has often been a topic of discussion over the past few years, during which Alvaro Uribe’s government has pursued a vigorous program of privatization.
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ECLAC Raises Regional Growth Forecasts To 5%
ECLAC, the UN’s Economic Commission for Latin America, has raised its growth forecasts for Latin America and the Caribbean region this year from 4.6% to 5%, in large part due to the economic performances of Brazil and Mexico. Sustained global growth and continuing liquidity underpinned the region’s growth of 4.5% last year and economic expansion this year. Growth forecasts for Brazil and Mexico were both raised half a percentage point, from 3.5% to 4%.
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Guatemala Confident Against Venezuela For UN Seat
Guatemala’s president, Oscar Berger, has said he is confident that Guatemala will win out against Venezuela to secure the second Latin American seat in the non-permanent Security Council at the United Nations. The seat becomes free next year when Argentina ends its two-year term. The successful candidate country will need to garner a two-thirds majority of votes from the 192 UN General Assembly members. Although voting is secret, the US has openly rejected Venezuela’s bid and is supporting Guatemala’s candidacy. Venezuela’s president, Hugo Chávez, is currently on a world tour in what, some say, is a public relations drive to secure votes. Peru holds the region’s second seat for another year.
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Nicaragua’s MRS Picks New Candidate
Nicaragua’s Sandanista Renovation Movement (MRS) has appointed its new presidential candidate and running mate to replace Herty Lewites who died earlier this month. Edmundo Jarquín and Carlos Mejía Godoy will stand for president and vice-president, respectively, for the MRS in the country’s elections slated for November 5. Jarquín, an economist and son-in-law of former president Violeta Chamorra, had been Lewites’ running mate prior to his death. Mejía Godoy is a well-known Nicaraguan singer with close associations with the Sandanista movement.
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ISA Secures Loan To Pay Electricity Bill
Colombia’s largest energy provider, state-controlled Interconexión Eléctrica SA (ISA), has secured a $550 million loan from JP Morgan Securities and ABN AMRO Bank to pay for the majority stake in Brazilian electricity distributor Companhia de Transmissão de Energia Elétrica Paulista (CTEEP), which it won in bidding at the end of June. ISA bid $534 million for a 50.01% stake in the São Paulo-based firm, representing the largest acquisition by a Colombian company abroad. The purchase of CTEEP turned ISA into Latin America’s largest energy provider, with operations in Colombia, Bolivia, Brazil, Ecuador, Panama and Peru.
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Auto Sales Help Drive Mexican Exports
Automotive sales helped to drive up Mexico’s exports to $21.2 billion last month, 16% up on the previous year. Exports of automotives have risen as foreign manufacturers expand their operations in the country to take advantage of cheaper manufacturing costs. The auto industry is an important component of Mexico’s industrial production, accounting for around 10% of its total output. Despite the industry’s buoyant sales, June’s trade balance showed a deficit of $417 million in the face of imports of $21.7 billion, a rise of 17.9% year on year.
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Cemex Receives Green Light For Semen Gresik Sale
Mexican cement producer Cemex has finally received approval from Indonesia’s government to sell its 24.9% holding in local cement firm Semen Gresik to India’s Rajawali Group. Cemex agreed in May to sell its stake in Indonesia’s largest cement player for $337 million. Cemex originally bought a share in Semen Gresik in 1998 and had hoped to increase it to gain control of the company. However, the Indonesia government refused to cede control and Cemex finally decided to exit the market.
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Colombia Places $1 Billion 10-Year Bonds
Colombia has opened in 2007 financing by selling $1 billion of dollar-denominated 10-year bonds. The bonds were sold to yield 7.45%, a spread of 240 basis points above comparable US treasuries. The spread on Colombian dollar-denominated paper has widened from around 152 basis points in March, before emerging markets tanked. According to the finance ministry, this latest issue was three times oversubscribed. The deal was led by JP Morgan Chase & Co and UBS.