Category: Regions
Posted inDaily Brief

Telmex Issues 4.5 Billion Peso Bonds

by LatinFinance

Mexican telephone operator Teléfonos de México (Telmex), owned by local business magnate Carlos Slim, has made an offering of 4.5 billion ($428 million) 10-year peso bonds. The bonds, which mature in 2016, carry an annual interest rate of 8.75% and are rated BBB+ by Standard & Poor’s and A2 by Moody’s. This is only the second ever peso-denominated local corporate issuance in Mexico. The first was made last November by another of Slim’s companies, cell phone operator América Móvil, which sold 5 billion pesos ($476 million) of 10-year bonds.
Meanwhile, Telmex has lost a case to claim back 9 billion pesos of income tax on share buybacks made between 2002 and 2004. Mexico’s Supreme Court ruled against the company which was trying to have the tax declared unconstitutional following changes to the income tax laws in 2002. The company says the ruling will have no financial impact as it has already made the deductions.

Posted inDaily Brief

Honduran Regulator Rejects Mexican Bank License

by LatinFinance

The Honduran bank regulator (CNBS) has rejected the application of Mexican Banco Azteca for a license to operate in Honduras. The regulator cited the bank’s failure to disclose pending charges of fraud against Azteca’s owner, Ricardo Salinas, in the US. Salinas has been accused by the US Securities and Exchange Commission (SEC) of defrauding minority shareholders of over $100 million.

Posted inDaily Brief

Panama To Issue $1.4 Billion Of New Global Bond

by LatinFinance

Following its recent swap offer, which saw the sovereign accept $1.062 billion of shorter-dated paper, Panama will issue $1.363 billion 30-year bonds. The bonds, which mature in 2036, will be issued with a coupon of 6.7%. The government had been hoping to swap up to $2.8 billion of its shorter-dated bonds and published the initial swap terms earlier this week. The bonds being exchanged were the 2020, 2023, 2027, 2029 and 2034. The deal was jointly managed by HSBC and JP Morgan.

Posted inDaily Brief

Colombian Congressmen Sacked

by LatinFinance

Five Colombian Congressmen have been sacked by their parties following allegations of links to paramilitary organizations. The Partido de la U and the Cambio Radical party, both supporters of President Alvaro Uribe, decided to oust the lawmakers ahead of the legislative elections on 12 March. Cambio Radical expelled Senators Jorge Castro and Jorge Caballero. The Partido de la U, which removed Congressmen Dieb Maloof, Habib Merheg and Luis Eduardo Vives as party candidates said the matter threatened the party’s credibility.

Posted inDaily Brief

Panama Publishes Initial Swap Terms

by LatinFinance

Panama has published initial terms for its bond swap which plans to exchange up to $2.8 billion of its shorter-dated global debt for a new 30-year global bond. The sovereign is offering 230 basis points above comparable US treasuries on its new global bond which matures in 2036. The maximum clearing spreads offered on the bonds to be swapped are: 1.73% on the 2020 bond; 2.02% on the 2023 bond; 2.15% on the 2027 bond; 2.28% on 2029 and 2.30% on 2034. The deal is being jointly managed by HSBC and JP Morgan.

Posted inDaily Brief

Peru’s Growth Quickens

by LatinFinance

The pace of Peru’s economic growth quickened in November, increasing by 7.9% against October’s rate of 7.2%. The growth was driven in main by the mining, natural gas and fishing sectors, which increased output by approximately 50%, 70% and 30% respectively. Annual inflation last year is estimated to be 6.3%.

Posted inDaily Brief

Bolivia Undecided On Mercosur

by LatinFinance

President-elect of Bolivia, Evo Morales, has said that he is undecided about whether Bolivia will ask for full membership of regional trading bloc Mercosur. Morales said that the new government will analyse all the trade accord options – CAN (Andean Community of Nations), TLC (Free Trade Agreement) and Mercosur — once installed. Morales is due to take office on 22 January. Bolivia is currently an associate member of Mercosur; full members currently include

Posted inDaily Brief

More Resignations In Panama

by LatinFinance

Trade talks between the US and Panama have claimed another casualty with the resignation Wednesday of the director of agricultural quarantine, Concepción Santos Sanjur. This follows the departure on Tuesday of Panama’s agriculture minister, Laurentino Cortizo, protesting the loss of agricultural sovereignty to the US and claiming that Panama would face an increase in animal diseases that would threaten the health of its citizens.

Posted inDaily Brief

Bolivian Fiscal Deficit Drops To Low

by LatinFinance

Bolivia’s fiscal deficit as a percentage of GDP fell to a 15-year low last year at only 1.6% as at year-end and well below the official initial target of 5.2%. In 2004 the deficit reached 5.5% of GDP. The remarkable improvement in the deficit was certainly helped by a 32% tax levied on foreign oil and gas companies. Meanwhile cumulative inflation for the year reached 4.91% and GDP growth was estimated at 3.9%.

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