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Daily Brief

Dec 05, 2008 Issue

IDB Extends Credit Line to Colombia

Bonds Structured Finance

The IDB has announced that it has approved a $650m credit line to Colombia to help Bancoldex finance investment projects and develop exports. It will initially receive a ...

Norsemont Hires Paradigm Capital as Advisor

Peru

Norsemont Mining has notified Peru’s Conasev that it has hired Paradigm Capital to act as its exclusive financial advisor. Canada-based Paradigm’s hiring comes shortly af...

Weak Oil Undermines Venezuela Nationalizations

With the price of oil now estimated to average $50-$60 a barrel in 2009, Venezuela will be forced to re-evaluate its nationalization plans. “The government prepared its b...

Vale Cuts Workforce and Output

Brazil

Frequent LatAm issuer Vale is responding to the commodity slump with significant reductions in headcount and output. As slims down its iron ore production, cuts in workfo...

Brazil Growth Seen Slowing

Brazil

For 2009, Credit Suisse forecasts a drop in Brazil’s GDP growth to 1.3% down from previous expectations of 2.8%, a rise in average annual unemployment to 9.0% from 7.9% i...

Banco Industrial Outlook Seen Worsening

Central America

Fitch has cut to stable from positive the outlook on the BB ratings of Banco Industrial amid a worsening environment in capital markets that complicates capital enhanceme...

S&P Affirms Suriname’s Ratings, Outlook

S&P has affirmed its B+ long-term foreign currency, BB minus long-term local currency and B short-term sovereign currency rating. The outlook remains stable, the agency s...

BMSC Frets Over Political Risk

Andean

Banco Mercantil Santa Cruz (BMSC), Bolivia’s biggest bank, says it is concerned about the local political environment in the medium to long term, including the threat of ...

Peru Miner Drills for M&A Funds

Loans

Peruvian miner Milpo is out with a $130m loan to help it pay for a 70% stake in Minera Atacocha. The 5-year final, 3-year average life facility pays Libor plus 425bp, and...

Merrill LatAm Unlikely to Escape Merger Scythe

M&A

As Merrill Lynch and Bank of America (BofA) shareholders cast votes on the proposed merger today, questions surrounding the extent of the post-vote carnage swirl both int...

EM "Shot in Thigh in Nightclub"

From the somber tone of this year's EMTA annual meeting in New York, it would seem that EM is dead. A relatively thinly attended round of buy and sell side panels at the ...

Few Corporate Defaults Expected in 2009

Corporate & Sovereign Strategy

Thanks largely to liquidity support from governments, EM corporates should see low default rates in 2009, says Anne Milne, head of Deutsche Bank's LatAm corporate bond re...

Oil Hedge, Infrastructure Boost Mexico

Mexico

Put options to sell oil at $70/barrel over the next few years and more than MXP100bn in the budget for infrastructure projects should allow Mexico to maintain a constant ...

Odebrecht Ethanol Sub Lands BNDES Credit

Brazil

Brazilian ethanol producer ETH is set to receive a BRL1.15bn loan to help finance the construction of 3 production facilities. The 10.5-year facility pays interest at the...

ISA Prices COP105bn Local Retap

Equity

Colombian state-controlled electricity grid operator Interconexion Electrica has priced COP104.5bn ($46m) in reopened 2026 bonds. The notes paying a coupon of the IPC rat...

Ferromex Repays Debt

Mexico

Mexico’s Ferrocarril Mexicano has paid off MXP1.2bn in 5-year floating-rate local notes due Thursday, it says. Ferromex, the railroad unit of copper miner Grupo Mexico, s...