Infonavit, Mexico’s largest home financing company, has issued 20-year domestic debt worth P$1.058 billion ($98 million) with a fixed annual rate of 5.90%. The mortgage-backed debt is the fourth tranche of an offering that was launched last year. The non-profit lender said it placed most of the offering with pension funds, insurers, investment companies, and also – for the first time – with foreign investors. Infonavit said it is preparing another issue for December.
Category: Regions
Posted inDaily Brief
Mexico Inflation Record Low
Mexico’s rate of inflation in September rose by only 0.40%, below analyst forecasts. The annual rate fell to a record low of 3.51%. Economists expect the Central Bank to continue to cut interest rates to boost growth in light of the low inflation figures. Since August 26, the Bank has cut the overnight lending rate by 50 basis points to 9.25%.
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Ecuador September Inflation Rise
Ecuador’s rate of inflation rose to 0.65% in September compared with 0.24% for the same period last year, and only 0.21% in August. Inflation for the past 12 months stood at 2.88% as at end-September; cumulative inflation was 2.76%, compared with 1.31% at the same time in 2004.
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Fogafín Completes 1.2% Sale of Granahorrar
The first phase of the privatization of Colombian state-owned mortgage lender Granahorrar has closed with the allocation by Fogafín of 497,446 shares of the bank worth 5.1 billion pesos to the company’s workers, cooperatives and pension funds. This represents 1.2% of the bank’s capital, leaving 98.8% for public auction. The minimum price for the remaining stake has been set at 438 billion pesos ($191 million).
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Fujimori Confirms He Will Run For President
Ex president of Peru Alberto Fujimori has confirmed that he will run for next year’s presidential elections due to take place in April 2006. At a press conference in Tokyo, Fujimori said he intended to run for president and claimed to have 30% support of the voters in Peru. Fujimori has been in Japan since resigning his presidency in 2000 and Peru has unsuccessfully sought his extradition from there to face human rights and corruption charges at home. Last month he received a new Peruvian passport.
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Colombia Confirms Gutiérrez Asylum
Colombia has decided to grant asylum to ex president of Ecuador Lucio Gutiérrez, the country announced. Gutiérrez arrived in Colombia at the end of September and was given leave to stay for 90 days while Colombia assessed his application to seek asylum. The former colonel was ousted from power on 20 April this year by Congress after he dissolved the Supreme Court sparking protests in the country. In June Gutiérrez gave up his political asylum status in Brazil, granted following his exit from Ecuador.
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Telefónica Del Perú First Local-currency Issue Abroad
Peru’s largest telecoms operator, Telefónica del Perú, has issued its first local currency bonds abroad. The $225 million sol-denominated paper matures in 2016. Telefónica’s issue follows Brazil’s successful first issue on 20 September, when it sold $1.5 million of real-denominated bonds to international investors.
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América Móvil Bonds Rated BBB
Mexican América Móvil’s Ps5 billion ($462 million) senior notes due 2016 have been rated BBB by Standard & Poor’s. Although issued in Mexican pesos, the notes will pay principal and interest in US dollars, unless investors elect to be paid in pesos. América Móvil, owned by business magnate Carlos Slim, in one of the most important telecommunication companies in Latin America, based both on the number of wireless subscribers and investments realized, which are made in high growth markets, currently with relatively low wireless penetration.
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Ecuador GDP Grows By 2.9%
Ecuador’s GDP grew by 2.9% year-on-year in the second quarter of 2005, compared with 10% in the same period last year. The drop in growth is due to the crisis in the oil sector earlier this year, which saw a fall in oil production of 4.5%. Between April and June this year non-oil sectors of the economy grew by 3.2%; when the oil sector is included it contracted by 2.8%.
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$450 Million Loans For Cerro Verde
Phelps Dodge Corp, which owns Peru’s third-largest copper mine, Cerro Verde, has said it has secured loans of $450 million to help with its expansion plans for the mine. The US company said it may replace $90 million of the financing with a bond sale in Peru. This follows a decision late last week by Cerro Verde shareholders to approve issuing bonds for up to $250 million. Phelps Dodge expects to triple annual production to 300,000 metric tons following expansion.