On November 14th, Banpro Grupo Promerica issued $200 million in bonds on the international market for a six-year term under the 144A format.
The bank announced that the issuance was made by Promerica Financial Corporation (PFC), its main shareholder, and that the issue was structured by Bank of America Merrill Lynch and Credit Suisse.
Ramiro Ortiz Mayorga, chairman of the board and CEO of Promerica, explained to Elnuevodiario.com.ni that "...
As a holder of concessions for duty free shops WISA contributes 7% of the revenues of Tocumen SA, and its inclusion in Clinton list has rattled investors.
An article in Prensa.com reports that yesterday "... the stock broker Citivalores informed the Stock Exchange of Panama that the initial purchaser of the issue, Citigroup Global Markets, decided that the original conditions set out in the purchase agreement had not been met and voided the bond offer made on May 4 and whose closing date was May 11."
Fitch has also downgraded the issue ratings on Guatemala's senior unsecured foreign and local currency bonds to 'BB' from 'BB+', with outlook revised to Stable.
From the press release by Fitch Ratings:
Fitch Ratings has downgraded Guatemala's long-term foreign and local currency Issuer Default Ratings (IDRs) to 'BB' from 'BB+'. Fitch has also downgraded the issue ratings on Guatemala's senior unsecured foreign and local currency bonds to 'BB' from 'BB+'. The Rating Outlooks on the long-term IDRs have been revised to Stable from Negative. In addition, Fitch has downgraded Guatemala's Country Ceiling to 'BB+' from 'BBB-' and affirmed the short-term foreign currency IDR at 'B'.
Demand for Treasury bonds on April 8 reached a total of Q590 million and $12 million.
The Ministry of Finance (MINFIN) continued on April 8, 2014 with the placement of Treasury Bonds of the Republic of Guatemala, for the fiscal year 2014, approved by Decree No. 30-2012 of the Congress.
The Ministry of Public Finance of Guatemala (MINFIN) has continued with its placement of Treasury bonds in dollars, with a coupon of 4.8750%, which is a complement to the investment options in Quetzales.
According to Standard & Poor's, the increase in transactions of covered bonds is strengthening financial markets in the region.
From an article by Standard & Poor's:
"Central America: New Transactions Could Bolster Performance"
"Panama's dormant yet sophisticated residential mortgage market witnessed some activity in 2013. After more than two years since the last placement, a new RMBS transaction was placed in the local market in 2013 for US$45 million, with the underlying collateral comprising residential mortgage loans in El Salvador. Historically, most securitizations have been locally placed, with just a few cross-border transactions.
"Weak public institutions in Guatemala and a polarized political environment continue to limit its credit quality" - Standard & Poor's
An article in elperiodico.com.gt reports that "The three most important credit rating agencies internationally: Moody's, Standard & Poors and Fitch Ratings, have pointed to deficient management in Guatemala's social indicators."
The issue that is planned to be made in July, will be used to settle accounts for $448.7 million which the government owes to builders.
"It's an important issue," said Alejandro Sinibaldi, head of the Ministry of Communications, Infrastructure and Housing (VIC), therefore, this month the initiative will be taken to Congress.
According to the Finance Minister Pavel Centeno, the project will be undertaken after rearranging the budget, as there are plans to make spending cuts of about $153.8 million amid falling revenues.
The Central America Bottling Corporation (CBC) yesterday issue bonds on the Luxembourg Stock Exchange.
Based in Guatemala, the CBC operates more than 20 brands in the country, including the renowned Pepsi brand.
Company executives explained that the bonds will pay an interest rate of 4.875% for a period of 10 years.
Rodrigo Alvarez, Director of Strategy and Financial Planning, said "the results of this placement confirm the confidence of investors and favorable international market conditions. These resources will be directed towards continuing our expansion and growth agenda, now that new investment opportunities are opening up in South America. "
The total amount of stock transactions increased by 33.6% in 2012 compared to the previous year.
Elperiodico.com.gt reports that "According to Paulo de León, consultant at the Central American Business Intelligence (CABI), the volume of transactions is reaching a significant amount, and is evidence of a recovery after several very difficult years. '
Governments should act as good parents, thinking about the welfare of future generations, not just about the next election.
Governments should act as good parents, thinking about the welfare of future generations, not just about the next election.
In his article in Martes Financiero, Oscar Castaño Llorente discusses the rationale of the proposed creation of the Panama Savings Fund (FAP in Spanish), not only in its philosophical scope, but also from a practical point of view, present and future.
Credicomer constitutes a new issuer of securities, kicking off business with an issue of $2 million.
Credicomer, Savings and Loan Company is a new issuer on the Salvadoran Stock Exchange (BVES). This week it made its first release totaling $2 million, reported ElSalvador.com.
This issue is part of the Papel Bursátil program, which will total $20 million.
The Guatemalan company Central America Beverage (Cabcorp) will release bonds worth $150 million on the U.S. market next week.
For the second time the company is to issues securities in international capital markets. The first time the issuance, rated BB, Ba2 and BB + by the rating agencies Standards & Poors (S & P), Moody's Investors and Fitch Ratings respectively, was acquired by Citigroup Global Market Inc.
This is the maximum amount allowed by law and the first issue will be on February 13th .
Guatemala's government plans to place up to Q 2,500 million ($ 320.1 million) in treasury bills in 2012, announced the Ministry of Public Finance (Minfin). The first release will take place on February 13th .
The amount is equivalent to 20 percent of current revenue estimates, which is allowed by Decree33-2011, contained in the State’s Budget of Income and Expenditures for this year, reported La Prensa Libre on its website.
The Credit Default Swaps (CDS) for Guatemalan bonds is only 1%, confirming the perception of investors that the chance of a default is very remote.
History seems to be repeating itself, but in reverse. While developed countries, especially those in Europe, are struggling to find a solution to the debt crisis, Latin American countries are enjoying relatively stable conditions, especially in the sphere of international finance.
The finance ministry confirmed that it will sell $213 million in bonds to replace securities issued years ago and due on 2010.
Such bonds will be in addition to $560 million issued recently. The proceeds of the sale will be used to pay a series of “Peace Bonds” (Bonos Paz) due in 2010.
The ministry assured that “this has no effect on our debt ceiling or the fiscal deficit.