Peruvian presidential candidate, Ollanta Humala, has seen his share of the vote fall 8 percentage points to 18.4% in the most recent opinion polls. Humala, a retired lieutenant colonel, has now slipped behind ex president Alan García who polled 20.8%. Conservative front-runner Lourdes Flores continues to consolidate her lead with 27.2% of the votes. Elections are due to be held on April 9.
Category: Regions
Posted inDaily Brief
Gil-Díaz to address investors at Miami Forum
Francisco Gil-Díaz, Minister of Finance and Public Credit of Mexico will deliver a key-note address 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 including 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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Ecuador External Debt Rises
Ecuador’s external debt rose to $17.5 billion in December last year, up 4% from a year earlier. Public debt at $10.9 billion was down slightly on 2004’s figure of $11.1 billion. Private sector debt accounted for $6.7 billion, a rise of 16% from $5.8 billion in 2004.
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Arca To Buy Stake In Food Processor Grupo Herdez
Mexican soft drink bottler Embotelladoras Arca is to buy a non-controlling stake in family-owned, food processing company Grupo Herdez. Arca has agreed to pay $304 million to buy around 73% in Herdez through a capital increase in the holding company, giving it a 49% stake in that vehicle, and by buying 25% of the food processor’s shares through a tender offer. Monterrey-based Arca says the purchase is aimed at benefiting from the growth in the broader food industry.
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Mexico To Sell To US Retail Investors
Mexico is to become the first foreign sovereign to offer investment-grade bonds directly to US retail investors. The government is taking advantage of its investment-grade rating to diversify its investor base and lower the cost of debt financing. From February 13 the government will sell, under its UMS InterNotes program, dollar-denominated bonds in $1,000 denominations, to individuals in the US wishing to invest in Mexico’s thriving economy. The notes will be issued with maturities ranging from three to 10 years and will include a survivor’s option. The bonds are expected to pay annual an interest rate of 0.7 to 1 percentage point above comparable US treasuries. Chicago-based Incapital and Banc of America Securities are lead managers and agents of the new program.
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IFC Invests In Colombia Paper Producer
The International Finance Corporation (IFC) has bought a 12.62% stake in Colombia’s largest producer of paper made from sugar cane fiber, Productora de Papeles (Propal). The IFC bought the stake held by the Colombian government for $18.9 million. Propal is controlled by local conglomerate Carvajal. The IFC, as at June last year, had invested $387 million in Colombia, in sectors ranging from finance to oil.
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Mexico: Deficit Narrows To 10-Year Low
Mexico’s budget deficit narrowest to its lowest level in almost 10 years last year, driven by a record trade surplus in the oil sector thanks to the high price of crude. The deficit stood at $705 million, representing 0.09% of GDP as at the end of 2005, while the oil surplus rose 24% against 2004 to $22.3 billion. Mexico is the world’s ninth largest exporter of crude, with most exports heading to the US.
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Flores Says De Soto To Join Team
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.
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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.