Colombia’s Promigas marked its first foray into the syndicated loan markets by securing a US$200mn 5-year unsecured facility, allowing the company to consolidate its existing debt at more aggressive pricing while broadening its funding base.
With stable GDP growth, strong demographics and a flurry of infrastructure programmes under way in the Andes, the region’s banking sector needs to provide the financial backbone for further development of some of the most flourishing economies in the EM space – that is, if the banks are able to steer clear of the pitfalls: corruption scandals, market volatility, and a potential global trade overhaul.
Juan Jose Echavarria, the new Governor of Colombia’s Central Bank, has come into the job at a time of uncertainty for global markets. With inflationary pressures simmering, countered by the need to boost growth through tightening, Bonds & Loans asked the country’s top banker about the legacy he has inherited and how the Bank plans to navigate the challenging economic landscape ahead.
The unprecedented corruption scandal engulfing Brazilian construction giant Odebrecht has reverberated throughout the industry, seeping into neighbouring Colombia and Peru and leading to the delay or outright cancellation of some of the region’s flagship infrastructure projects. We speak with Luis Fernando Andrade Moreno, President of the National Infrastructure Agency of Colombia (ANI), about the industry’s concerns around any potential effects on the funding environment surrounding one of the region’s most successful infrastructure programmes.
Sustainable energy and infrastructure projects across South and Central America are attracting attention from investors, but the outlook is challenged due to a lack of awareness on the ground.
Peru has over US$45bn in infrastructure projects currently tied up in administrative deadlock. But the government’s private investment promotion agency Proinversión, which oversees the approval process for the country’s public-private partnerships (PPP), is currently embarking on a complete overhaul to relieve the bottleneck and help stimulate further infrastructure development. Bonds & Loans speaks with Álvaro Quijandría, the recently appointed Executive Director of Proinversión, about how he intends to pull it off.
Emerging market debt took a significant hit after the surprising victory of Donald Trump last November, which was followed by a US interest rate hike weeks later. Concern over the President-Elect’s protectionist policies provoked capital outflows and a significant spike in borrowing costs for US-linked EMs, freezing almost US$10bn worth bonds that were supposed to be issued by Latin American corporations at the end of 2016. Those deals have come roaring back.
Divisive politics and persistently low energy prices will cast a pall over the entire Andean region in 2017, even while each country within the region represents a unique storyline for investors. The lack of political unity in each Andean market is further challenged by a global environment that has turned hostile with rising interest rates, depressed commodity prices and anti-trade rhetoric proliferating in the US and Western Europe.
Chile has been one of the major success stories in Latin America over the past decade. As the economy slowed in the past year amid the commodities slump, the Chilean government is looking to attract local and foreign capital to finance an ambitious programme of sustainable energy projects across the country. The country is well positioned to succeed in this endeavour, analysts believe.
We spoke to Gustavo Galvis, Chief Representative, Andean Region & Central America, EDC, in the run-up to the Bonds, Loans & Derivatives Andes 2017 conference, to discuss the new opportunities around the 4G Programme and other infrastructure developments, which kind of projects are bankable for EDC and the challenges for the Andean economies in 2017.
- Interview with Carlos Vargas, Chief Executive Officer, Andino Investment Holding
- Interview with Carlos Alberto Rodríguez López, CFO, ISA
- ECAs Increasingly Central to Financing the Andean Infrastructure Pipeline
- Colombian referendum “No” vote leaves investors on hold
21 Feb 2017
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