One of the leading candidates in Peru’s upcoming April elections, Lourdes Flores, says that she is expecting world-famous Peruvian economist Hernando de Soto to join her administration, should she win. De Soto, considered by many to be the region’s leading economist, is the founder of the think-tank Institute of Liberty and Democracy in Lima and author of ‘El Otro Sendero’ (‘The Other Path’). A recent poll shows conservative candidate Flores with an 8% lead over nearest rival, nationalist Ollanta Humala.
Category: Regions
Posted inDaily Brief
Zavala Lombardi addresses audience of issuers and investors
Fernando Zavala Lombardi, Minister of Finance of Peru will address an audience of issuers, investors, and intermediaries at the next Latin American Borrowers and Investors Forum in Miami on February 16th. The forum will bring together the leading institutions and individuals that shape Latin America’s capital markets. They include Jeff Huther, Director of Debt for the U.S. Department of Treasury; Atul Mehta, Head of Latin America & the Caribbean at the IFC; Andreas von Wedemeyer, President of AFP Profuturo and Arthur Steinmetz, Head of International Bond Trading at Oppenheimer Funds Inc.; among others. To learn more please visit www.latinfinance.com/labif
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Mexican Gruma Makes Global Public Offering
Mexican company Gruma, the world’s largest manufacturer of tortillas, offered 30 million new shares yesterday, Monday, at Ps38.25 per share looking to raise around $109 million. Gruma is aiming to increase its capital and improve the liquidity of its securities in the markets. Gruma is one of the main tortilla suppliers for US fast food chains and food retailers. Following the sale of new shares, the company’s capitalization will increase by around 6.6% to $1.8 billion.
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Colombia Telecom Buys Batelsa
Colombia’s state-owned telephone operator Telecom, due for privatization in March, has bought regional fixed-line operator Batelsa, based in Barranquilla, in a deal worth $91.5 million (Ps 206 billion). Telecom was able to bid just under the pre-established minimum of Ps 209 billion after the three-qualifying bidders — EPM, ETB and Metrotel – failed to submit offers in the auction last Friday.
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Moody’s Improves Ecuador Outlook
Moody’s Investors Service has improved the outlook on Ecuador’s Caa1 foreign-currency bond rating from stable to positive. Moody’s said it had improved the sovereign’s outlook as a result of better liquidity and debt ratios. It also commended the country’s fiscal management despite periods of political uncertainty and said that Ecuador’s debt levels were lower now relative to the years before the country’s default in 1999.
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Mexico Lowers Lending Rate To 7.75%
Mexico’s central bank has cut the benchmark lending rate by half a percentage point to 7.75%, the lowest level in almost a year and a half. Record core inflation figures of 3%, as at mid January, spurred the bank to cut the rate for the six consecutive month. Economists expect this to be the last big reduction to the benchmark rate by the central bank for the next few months due to inflationary concerns.
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Pemex Arranges New $5.5 Billion Financing
Mexico’s state oil company Pemex is arranging new financing that is expected to result in a total $5.5 billion of syndicated loans. The loans will include two floating-rate loans of $1.5 billion and $2.75 billion with five and seven-year maturities respectively. Last week the company reopened two of its notes – a 10-year and a 30-year issuance, to offer a further $1.5 billion of debt. The money raised will be used for refinancing existing debt. The syndicated lending is being led by BBVA, Calyon, Citigroup, HSBC, Santander and Scotia Capital.
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Morales Honors Salary Promise
Bolivia’s new president, Evo Morales, has honored an election campaign pledge to take a pay cut if elected. He has reduced his own salary by 57% to around $1,875 a month and has cut ministers salaries by 50% to about $1,750. The money saved it to be put towards health care and education.
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Banorte To Buy US Bank
Banorte will become the first Mexican financial institution to buy a foreign bank when it acquires 70% of Texan Inter National Bank for $259 million. Monterrey-based Banorte, Mexico’s fourth-largest bank in asset terms, says the acquisition is part of a strategy to benefit from the growing Hispanic market in the US. INB has assets of nearly $1.1 billion. Banorte says that in addition to the 70% stake it will take an option to buy the remaining 30% over the next five years. The deal is subject to US and Mexican regulatory approval.
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Gerardo Rodríguez shares his view on Local Capital Markets
Gerardo Rodríguez, Head of Public Credit of Mexico will participate in a panel discussion on Latin American Capital Markets at the next Latin American Borrowers and Investors Forum in Miami on February 16th. The panel will debate on whether local markets are deep enough to satisfy the demand of funds; what Latin American governments still need to do to facilitate and encourage the entry of foreign capital into local markets and the explosion of peso-denominated mortgage-backed securities in Mexico and its impact in the market among other topics. Mr. Rodriguez will be joined by Jeff Huther, Director of Debt for the US Department of Treasury; Atul Mehta, Head of Latin America and the Caribbean at the IFC; Simon Nocera, Partner at Lumen Advisors LLC; Felipe Sardi, General Director of Public Credit and National Treasury of Colombia and Arthur Steinmetz, Head of International Bond Trading at Oppenheimer Funds Inc. To learn more please visit www.latinfinance.com/labif