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.
The new administration has announced that the placement will be in the local market and resources will finance the 2016 budget.
The Ministry of Finance (Minfin) has released the rules for the bond issue and financing needed to make up the shortfall in resources for the new Guatemalan government.
Julio Héctor Estrada, head of the branch, told Elperiodico.com.gt that "we will be turning to the local market next week. The decision has been made because only half of the Bonds can be issued in the first half (Q4.7 billion, about $607,274,371) and that is not enough to make an issue abroad. But with this we will be able to breath life into the functioning of the government and although tax collections are above target, we will need Bonds because of cyclical spending ".
Two years after the expiration of the contract awarded to the company Maycom in 2009, the Interior Ministry has announced that it is re-tendering the system for issuing driver's licenses.
There will be no extension of the existing contract, as according to officials at the Ministry of Interior, there is a ruling stating that a new tender must be made. However, Maycom may participate in the new process.
On December 12th the Ministry of Finance expects to place in the domestic market the remaining 30% of the issue approved in order to finance the 2015 budget.
70% of the treasury bonds that Congress passed have already been awarded, and on December 12th it is expect that the remaining 30%, ie $110 million will be auctioned in the local market.
Carlos Gonzalez, an analyst at the Association for Research and Social Studies, told Diario de Centro America "... The extraordinary bond issue was made due to underfunding of the budget, resulting from low tax revenues. Also, the spending requirements of the Ministries of Health, Education and Government forced Congress to authorize this transaction. "
The National Stock Exchange will implement a system of mass placement of securities in order to encourage the registration of emissions from private companies and the arrival of more investors.
The strategy will focus on standardizing the securities that are issued in the primary market so that they can then be traded in the secondary market and in this way give them greater marketability and encourage the participation of more investors.
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