Petróleos Mexicanos (Pemex) has sold $750 million senior floating-rate notes in the 144A securities market. The notes, maturing in 2012, carry a coupon of 60 basis points over three-month Libor. HSBC Securities and Morgan Stanley were the arrangers.
Category: Regions
Posted inDaily Brief
Panamanian Global Bond Rated BB+
Panama’s newly issued benchmark sovereign paper has been rated BB+ by Fitch Ratings. Panama issued $980 million of the 20-year global bonds which mature on 29 January 2026.
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Peru and Thailand Sign Free Trade Agreement
Peru and Thailand have signed a free trade agreement at the Asia Pacific Economic Cooperation Forum in Busan, South Korea. Peru hopes the accord will add $500 million in annual exports and help create 300,000 new jobs.
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Peru’s Fiscal Deficit Narrows
Peru’s fiscal deficit in the third quarter dropped to 0.8% of GDP compared with 2.1% in the same period in 2004. The government has been targeting a deficit of 1% of GDP. The government’s primary surplus was 1.3% of GDP up from an even balance in 2004.
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Colombia Uribe Popularity Slips
A new poll carried out in Colombia shows that President Alvaro’s Uribe’s voter approval rating has slipped to 69% from 76% in August. Presidential elections are set to take place next May. On 11 November Colombia’s Constitutional Court cleared the way for Uribe to run for a second term in the upcoming elections.
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Panama Offers 20-Year Global Paper
Panama has offered $980 million of new 20-year debt in exchange for four of its global bonds, maturing in 2008, 2011, 2012 and 2020. The new paper matures in 2026 and yields 7.295%. Panama said it wanted to extend its debt maturity profile and reduce its short-term debt burden. The swap is being managed by Citigroup.
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Colombia To Cut Corporate Tax To Under 30%
Colombia is planning to corporate tax from 38.4% to under 30% by the end of the year. Currently, Colombia has one of the highest rates of corporate tax on the continent. The move is aimed at boosting investment.
Posted inDaily Brief
Mexico Sells Warrants In Bond Swap
Mexico has sold $65 million of warrants as part of a debt swap program to move more of the country’s debt into the domestic market. The warrants enable investors to swap $2.5 billion dollar-denominated securities for peso debt next year. Investors can hand over the warrants, as well as any of 14 Mexican dollar bonds, in return for three local-currency bonds: maturing in 2011, 2014 and 2024. The sale was managed by JP Morgan Chase & Co and Credit Suisse First Boston.
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Colombia’s Lending Rate Unchanged
Colombia’s Central Bank has left its benchmark lending rate unchanged once more. The rate of 6.0%, reduced in September from 6.5%, is the lowest in two years. Meantime inflation rose to 5.3% in the 12 months to October.
Posted inDaily Brief
Mexican Currency Derivatives Trading Up 55%
The value of Mexican peso derivatives rose by 55% in the first half of 2005 to $459 billion. The rise reflects the increasing hedging needs of foreign investors in the Mexican bond market, according to the BIS. The most rapidly growing sector of the peso derivatives market are currency swaps in pesos.