Chocolates May Issue Peso Bonds

Colombian food company, Inversiones Nacionales de Chocolates, part of the country’s largest conglomerate, Medellín-based GEA, may issue up to $150 million of local-currency bonds to finance regional acquisition plans. This will be the first foray into the debt markets by Chocolates, which needs to add $150 million to its cash at hand to raise around $300 million needed to buy four companies in Central America and Peru. Chocolates is keen to take advantage of lower tariffs in Central America once Cafta is implemented. Pension funds seeking to diversify are seen as the likely buyers of the bonds.