Dec. 30 (Bloomberg) -- Brazil’s so-called sovereign wealth fund can be used to make purchases of dollars in the spot market, Treasury official Cleber Oliveira said.
Under a decree published yesterday in the official gazette, the fund’s managers will need authorization from the ministries of finance and planning, as well as the central bank, to make the purchases, said Oliveira, an undersecretary of the Treasury in charge of fiscal planning.
Brazil is seeking to have the fund operational in 2010, Oliveira told reporters today in Brasilia. The fund had 16.3 billion reais ($9.35 billion) on Dec. 24, he said."
more: Brazil Sovereign Fund Can Buy Dollars in Spot Market
Wednesday, December 30, 2009
Tuesday, December 29, 2009
Brazil’s President Lula Signs Decree Creating Sovereign Fund
Brazil’s President Lula Signs Decree Creating Sovereign Fund
Dec. 29 (Bloomberg) -- Brazil’s President Luiz Inacio Lula da Silva signed a decree creating the country’s sovereign fund.
Brazil set the six-month London interbank offered rate, or Libor, as minimum return for the fund’s investments abroad, according to the decree published in the government’s official gazette today. The country set its long-term interest rate, or TJLP, as the minimum return for the fund’s investments in the local market.
Brazil’s sovereign fund will buy only investment grade assets rated by at least two agencies.
Last Updated: December 29, 2009 04:51 EST"
Dec. 29 (Bloomberg) -- Brazil’s President Luiz Inacio Lula da Silva signed a decree creating the country’s sovereign fund.
Brazil set the six-month London interbank offered rate, or Libor, as minimum return for the fund’s investments abroad, according to the decree published in the government’s official gazette today. The country set its long-term interest rate, or TJLP, as the minimum return for the fund’s investments in the local market.
Brazil’s sovereign fund will buy only investment grade assets rated by at least two agencies.
Last Updated: December 29, 2009 04:51 EST"
Thursday, December 24, 2009
Lemann, Telles, Sicupira to pay record Brazil fine
Lemann, Telles, Sicupira to pay record Brazil fine
RIO DE JANEIRO, Dec 24 (Reuters) - Brazilian financial tycoons Jorge Paulo Lemann, Marcel Herrmann Telles and Carlos Alberto Sicupira agreed to pay 18.6 million reais ($10.6 million) to settle a five-year old case where they were accused of abuse of power as controlling shareholders of beverage company AmBev (AMBV4.SA), the country's securities regulator said on Thursday.
The fines, among the highest ever paid by individuals in a financial lawsuit in Brazil, stemmed from a complaint filed in 2004 by Previ, Latin America's largest pension fund, against terms of the sale of AmBev to Belgium's Interbrew and the takeover of Canadian brewer Labatt, the regulator said.
Lemann, a Brazilian billionaire listed by Forbes magazine as the third wealthiest person in the country, Telles and Sicupira each agreed to pay 5 million reais to settle accusations that they wrongfully used a stock options plan to increase their stake in AmBev (ABV.N) and failed to meet their fiduciary duties, the regulator said in a statement.
Sicupira, the ninth richest Brazilian according to Forbes, also agreed to pay an additional 3.03 million reais to settle an accusation of conflict of interest. The regulator, known as CVM, said he should have abstained from voting in a board meeting that approved terms of the takeover of Labatt by AmBev because he was also a controlling shareholder of the Brazilian company.
Lemann and Telles, the seventh wealthiest Brazilian according to Forbes, also agreed pay each 285,000 reais to settle an accusation that they gave wrong information to the securities regulator regarding the Labatt purchase.
Brazil's securities regulator has stepped up its probe of insider trading and other types of fraud in the country as more individuals choose to put funds in the country's booming stock market. The regulator in October slapped a 19.2 million-real fine, the second-biggest ever in the country, on Credit Suisse (CSGN.VX) to settle an insider trading case.
Telles, Lemann and Sicupira founded Brazilian investment bank Garantia, which was sold to Credit Suisse in 1998, before making a fortune in the beer industry through a series of mergers and acquisitions that formed Anheuser-Busch InBev (ABI.BR). The three are among the largest individual owners of AB-Inbev.
Brazil's securities regulator also said six other AmBev executives agreed to pay a total 1.4 million reais to settle accusations they didn't fulfill their duties in regards to the takeover of Labatt.
Among those executives, Luis Felipe Dutra, AB-Inbev's current chief financial officer who was AmBev's director of investor relations at the time, agreed to pay 400,000 reais. ($1=1.753 reais) (Reporting by Elzio Barreto; Editing by Tim Dobbyn)"
RIO DE JANEIRO, Dec 24 (Reuters) - Brazilian financial tycoons Jorge Paulo Lemann, Marcel Herrmann Telles and Carlos Alberto Sicupira agreed to pay 18.6 million reais ($10.6 million) to settle a five-year old case where they were accused of abuse of power as controlling shareholders of beverage company AmBev (AMBV4.SA), the country's securities regulator said on Thursday.
The fines, among the highest ever paid by individuals in a financial lawsuit in Brazil, stemmed from a complaint filed in 2004 by Previ, Latin America's largest pension fund, against terms of the sale of AmBev to Belgium's Interbrew and the takeover of Canadian brewer Labatt, the regulator said.
Lemann, a Brazilian billionaire listed by Forbes magazine as the third wealthiest person in the country, Telles and Sicupira each agreed to pay 5 million reais to settle accusations that they wrongfully used a stock options plan to increase their stake in AmBev (ABV.N) and failed to meet their fiduciary duties, the regulator said in a statement.
Sicupira, the ninth richest Brazilian according to Forbes, also agreed to pay an additional 3.03 million reais to settle an accusation of conflict of interest. The regulator, known as CVM, said he should have abstained from voting in a board meeting that approved terms of the takeover of Labatt by AmBev because he was also a controlling shareholder of the Brazilian company.
Lemann and Telles, the seventh wealthiest Brazilian according to Forbes, also agreed pay each 285,000 reais to settle an accusation that they gave wrong information to the securities regulator regarding the Labatt purchase.
Brazil's securities regulator has stepped up its probe of insider trading and other types of fraud in the country as more individuals choose to put funds in the country's booming stock market. The regulator in October slapped a 19.2 million-real fine, the second-biggest ever in the country, on Credit Suisse (CSGN.VX) to settle an insider trading case.
Telles, Lemann and Sicupira founded Brazilian investment bank Garantia, which was sold to Credit Suisse in 1998, before making a fortune in the beer industry through a series of mergers and acquisitions that formed Anheuser-Busch InBev (ABI.BR). The three are among the largest individual owners of AB-Inbev.
Brazil's securities regulator also said six other AmBev executives agreed to pay a total 1.4 million reais to settle accusations they didn't fulfill their duties in regards to the takeover of Labatt.
Among those executives, Luis Felipe Dutra, AB-Inbev's current chief financial officer who was AmBev's director of investor relations at the time, agreed to pay 400,000 reais. ($1=1.753 reais) (Reporting by Elzio Barreto; Editing by Tim Dobbyn)"
Tuesday, December 22, 2009
Brazil Total Federal Debt Up 1.3% To BRL1.49 Tln In November
Brazil Total Federal Debt Up 1.3% To BRL1.49 Tln In November
BRASILIA (Dow Jones)--Under the impact of net debt issuance and interest accrual Brazil's total federal debt load rose by 1.3% to 1.49 trillion Brazilian reals ($837 billion) in November, the government reported Tuesday.
In a joint statement, Brazil's central bank and treasury said the country's domestic federal debt load denominated in reals rose 1.4% from October to BRL1.39 trillion.
The government reported the overall increase in domestic federal debt came alongside BRL7.92 billion in net debt issuance and BRL11.13 billion in interest accrual. -
Meanwhile, Brazil's outstanding federal debt overseas rose 0.4% from October to BRL102 billion.
Regarding the profile of federal domestic debt in November, treasury officials reported floating-rate debt fell to 37.39% of total domestic debt during the month from 37.66% in October.
At the same time, the share of fixed-rate debt rose to 32.47% from 31.23%.
The share of inflation-indexed bonds fell during the month of November to 28.21% of debt from 29.16%, while exchange-linked debt fell to 0.71% of the total from 0.72% the previous month.
Brazil's government has been attempting to lengthen its debt profile and reduce its exposure to interest-rate risk through increased sales of fixed-rate and inflation-indexed debt.
The government reported Tuesday that average maturity of domestic debt fell to 3.37 years in November from 3.42 years in October.
At the same time, however, the government said the volume of domestic debt maturing in the coming 12 months fell in November to 25.87% from 26.55%.
The average cost of debt coming due in the next 12 months fell to 10.86% annually from 11.15% annually.
The November federal debt figures released Tuesday represent a key element of consolidated public-sector debt figures scheduled for release next week.
Brazil posted net consolidated public sector debt in October of BRL1.33 trillion, equivalent to 44.8% of gross domestic product.
-By Gerald Jeffris, Dow Jones Newswires; (5561) 3335-0832, gerald.jeffris@dowjones.com"
BRASILIA (Dow Jones)--Under the impact of net debt issuance and interest accrual Brazil's total federal debt load rose by 1.3% to 1.49 trillion Brazilian reals ($837 billion) in November, the government reported Tuesday.
In a joint statement, Brazil's central bank and treasury said the country's domestic federal debt load denominated in reals rose 1.4% from October to BRL1.39 trillion.
The government reported the overall increase in domestic federal debt came alongside BRL7.92 billion in net debt issuance and BRL11.13 billion in interest accrual. -
Meanwhile, Brazil's outstanding federal debt overseas rose 0.4% from October to BRL102 billion.
Regarding the profile of federal domestic debt in November, treasury officials reported floating-rate debt fell to 37.39% of total domestic debt during the month from 37.66% in October.
At the same time, the share of fixed-rate debt rose to 32.47% from 31.23%.
The share of inflation-indexed bonds fell during the month of November to 28.21% of debt from 29.16%, while exchange-linked debt fell to 0.71% of the total from 0.72% the previous month.
Brazil's government has been attempting to lengthen its debt profile and reduce its exposure to interest-rate risk through increased sales of fixed-rate and inflation-indexed debt.
The government reported Tuesday that average maturity of domestic debt fell to 3.37 years in November from 3.42 years in October.
At the same time, however, the government said the volume of domestic debt maturing in the coming 12 months fell in November to 25.87% from 26.55%.
The average cost of debt coming due in the next 12 months fell to 10.86% annually from 11.15% annually.
The November federal debt figures released Tuesday represent a key element of consolidated public-sector debt figures scheduled for release next week.
Brazil posted net consolidated public sector debt in October of BRL1.33 trillion, equivalent to 44.8% of gross domestic product.
-By Gerald Jeffris, Dow Jones Newswires; (5561) 3335-0832, gerald.jeffris@dowjones.com"
Brazil Central Bank Sees 2010 Growth At 5.8%, IPCA At 4.6% - WSJ.com
Brazil Central Bank Sees 2010 Growth At 5.8%, IPCA At 4.6%
BRASILIA (Dow Jones)--Responding to the influence of strong local economic stimulus and an incipient global recovery, Brazil's economy should grow by 5.8% in 2010 from near zero this year, while inflation will accelerate to above the country's 4.5% annual inflation target, Brazil's central bank said Tuesday in its fourth-quarter inflation report.
The central bank revised its forecast for 2009 IPCA consumer price inflation upward to 4.3% from 4.2% seen earlier and lifted its projection for 2010 IPCA inflation to 4.6% from 4.4%. Meanwhile, it revised its economic growth projection for 2009 lower, to 0.2% from 0.8% seen in the previous report.
The monetary authority said the latest forecasts were based on an improving outlook abroad as well as a continued firm economic rebound locally.
'The scenario is based on a medium-term recovery in global economic activity on the external front, as well as continued expansion within a benign inflation environment on the domestic side,' the bank said. 'From the point of view of risks related to the inflation outlook, the main risk comes from the intensity of a domestic economic recovery, which will undergo still more important influence from economic policy stimulus.'
The bank, meanwhile, confirmed market expectations that inflation pressure could remain strong as the local economy stages a recovery, projecting 2011 inflation to remain above target at 4.6%.
The latest projections released by the central bank were based on an exchange rate of 1.75 Brazilian reals per dollar and a reference Selic interest rate of 8.75% annually.
-By Gerald Jeffris, Dow Jones Newswires; (5561) 3335-0832, gerald.jeffris@dowjones.com"
BRASILIA (Dow Jones)--Responding to the influence of strong local economic stimulus and an incipient global recovery, Brazil's economy should grow by 5.8% in 2010 from near zero this year, while inflation will accelerate to above the country's 4.5% annual inflation target, Brazil's central bank said Tuesday in its fourth-quarter inflation report.
The central bank revised its forecast for 2009 IPCA consumer price inflation upward to 4.3% from 4.2% seen earlier and lifted its projection for 2010 IPCA inflation to 4.6% from 4.4%. Meanwhile, it revised its economic growth projection for 2009 lower, to 0.2% from 0.8% seen in the previous report.
The monetary authority said the latest forecasts were based on an improving outlook abroad as well as a continued firm economic rebound locally.
'The scenario is based on a medium-term recovery in global economic activity on the external front, as well as continued expansion within a benign inflation environment on the domestic side,' the bank said. 'From the point of view of risks related to the inflation outlook, the main risk comes from the intensity of a domestic economic recovery, which will undergo still more important influence from economic policy stimulus.'
The bank, meanwhile, confirmed market expectations that inflation pressure could remain strong as the local economy stages a recovery, projecting 2011 inflation to remain above target at 4.6%.
The latest projections released by the central bank were based on an exchange rate of 1.75 Brazilian reals per dollar and a reference Selic interest rate of 8.75% annually.
-By Gerald Jeffris, Dow Jones Newswires; (5561) 3335-0832, gerald.jeffris@dowjones.com"
Brazil's BTG may bid for asset manager BRZ-report | Reuters
Brazil's BTG may bid for asset manager BRZ
SAO PAULO, Dec 22 (Reuters) - BTG Pactual, the securities firm controlled by Brazilian banking wunderkind Andre Esteves, is in talks to buy Sao Paulo-based asset management firm BRZ Investimentos, magazine Veja said on its Tuesday online edition.
Stocks | Mergers & Acquisitions | Bonds | Global Markets | Private Capital | Financials
Veja's Radar column, where the information was published, didn't give any terms for the transaction. GP Investments controls about 60 percent of BRZ, with the remaining 40 percent still belonging to a group of managing partners led by Nelson Rozental and Marcos Falcao.
BRZ has about 3 billion reais ($1.7 billion) in assets under management.
Spokeswomen for BRZ and GP Investments declined to immediately comment on the Veja report. A BTG Pactual spokeswoman did not answer calls requesting comments on the Veja report.
BRZ Investimentos, which was spun off about two years ago from Latin America's largest private equity firm GP Investments (GPIV11.SA), has been struggling in recent weeks after suspending redemptions on a private credit fund it oversees following massive withdrawals, according to local media reports. ($1=1.78 reais) (Reporting by Guillermo Parra-Bernal; Editing by Hans Peters)"
SAO PAULO, Dec 22 (Reuters) - BTG Pactual, the securities firm controlled by Brazilian banking wunderkind Andre Esteves, is in talks to buy Sao Paulo-based asset management firm BRZ Investimentos, magazine Veja said on its Tuesday online edition.
Stocks | Mergers & Acquisitions | Bonds | Global Markets | Private Capital | Financials
Veja's Radar column, where the information was published, didn't give any terms for the transaction. GP Investments controls about 60 percent of BRZ, with the remaining 40 percent still belonging to a group of managing partners led by Nelson Rozental and Marcos Falcao.
BRZ has about 3 billion reais ($1.7 billion) in assets under management.
Spokeswomen for BRZ and GP Investments declined to immediately comment on the Veja report. A BTG Pactual spokeswoman did not answer calls requesting comments on the Veja report.
BRZ Investimentos, which was spun off about two years ago from Latin America's largest private equity firm GP Investments (GPIV11.SA), has been struggling in recent weeks after suspending redemptions on a private credit fund it oversees following massive withdrawals, according to local media reports. ($1=1.78 reais) (Reporting by Guillermo Parra-Bernal; Editing by Hans Peters)"
Monday, December 21, 2009
Emerging-Market Bond Yield Spreads Decline on Global Recovery - Bloomberg.com
Dec. 21 (Bloomberg) -- The yield gap on emerging-market debt fell the most in almost two months on speculation the global economic recovery is gathering strength.
The extra yield investors demand to own developing-nation debt over U.S. Treasuries declined 14 basis points to 2.90 percentage points by 5 p.m. in New York, according to JPMorgan Chase & Co., the biggest drop since Oct. 29. The MSCI Emerging Markets Index dropped 0.4 percent to 946.42 after a gain in the dollar reduced the appeal of commodities including oil and sugar as alternatives.
more: Emerging-Market Bond Yield Spreads Decline on Global Recovery
The extra yield investors demand to own developing-nation debt over U.S. Treasuries declined 14 basis points to 2.90 percentage points by 5 p.m. in New York, according to JPMorgan Chase & Co., the biggest drop since Oct. 29. The MSCI Emerging Markets Index dropped 0.4 percent to 946.42 after a gain in the dollar reduced the appeal of commodities including oil and sugar as alternatives.
more: Emerging-Market Bond Yield Spreads Decline on Global Recovery
Sunday, December 20, 2009
LATAM WEEKAHEAD-Brazil Q4 inflation report key for rate outlook | Reuters
LATAM WEEKAHEAD-Brazil Q4 inflation report key for rate outlook
NEW YORK, Dec 20 (Reuters) - Investors will be cautiously monitoring a key fourth-quarter inflation report to be released by the Brazilian central bank on Tuesday, looking for signs that a recent batch of positive economic indicators might force policy-makers to raise rates earlier than expected.
The Brazilian central bank so far has said it is comfortable with the inflation outlook for 2010, which could allow the benchmark Selic rate to remain at its all-time low of 8.75 percent for a long time.
But investors in the market of interest rate futures have been pricing a hike of at least 150 basis points as early as in the first half of the year, especially after Brazilian data on retail sales and job creation exceeded expectations last week.
"With Brazil's economic recovery continuing to show strong momentum, anchored by solid domestic demand boosted by this year's strong jobs recovery, re-accelerating growth and fiscal stimulus, expectations are high that the central bank will begin hiking rates in the first half of 2020," RBC Capital Markets said in a report.
Other key data points investors will be watching this week are:
Tuesday Dec. 22
* Brazil - central bank Q4 inflation report
Wednesday Dec. 23
* Brazil - IPCA 15 inflation: Barclays Capital expects mid-month consumer inflation in Brazil to slow down to 0.3 percent in December, after a 0.44 percent reading in the previous period.
By Walter Brandimarte
NEW YORK, Dec 20 (Reuters) - Investors will be cautiously monitoring a key fourth-quarter inflation report to be released by the Brazilian central bank on Tuesday, looking for signs that a recent batch of positive economic indicators might force policy-makers to raise rates earlier than expected.
The Brazilian central bank so far has said it is comfortable with the inflation outlook for 2010, which could allow the benchmark Selic rate to remain at its all-time low of 8.75 percent for a long time.
But investors in the market of interest rate futures have been pricing a hike of at least 150 basis points as early as in the first half of the year, especially after Brazilian data on retail sales and job creation exceeded expectations last week.
"With Brazil's economic recovery continuing to show strong momentum, anchored by solid domestic demand boosted by this year's strong jobs recovery, re-accelerating growth and fiscal stimulus, expectations are high that the central bank will begin hiking rates in the first half of 2020," RBC Capital Markets said in a report.
Other key data points investors will be watching this week are:
Tuesday Dec. 22
* Brazil - central bank Q4 inflation report
Wednesday Dec. 23
* Brazil - IPCA 15 inflation: Barclays Capital expects mid-month consumer inflation in Brazil to slow down to 0.3 percent in December, after a 0.44 percent reading in the previous period.
By Walter Brandimarte
Thursday, December 17, 2009
Banco do Brasil Is in Talks to Buy U.S. Bank, CEO Tells Valor - Bloomberg.com
Banco do Brasil Is in Talks to Buy U.S. Bank, CEO Tells Valor
Dec. 17 (Bloomberg) -- Banco do Brasil SA is in talks to buy the U.S. assets of a foreign bank in distress, Valor Economico reported, citing an interview with Chief Executive Officer Aldemir Bendine.
While Bendine declined to identify the bank, he said it has 14 branches in the U.S., the Sao Paulo-based newspaper reported.
Banco do Brasil is planning also to expand through acquisitions or by opening its own operations in Peru, Colombia, Paraguay, Uruguay, Angola and Mozambique, Valor reported the CEO as saying. In Europe, the bank aims to boost its business through a Vienna-based subsidiary, he said.
Banco do Brasil announced talks to buy a stake in Argentina’s Banco Patagonia earlier this week.
To contact the reporter responsible for this story: Camila Fontana in Sao Paulo at cfontana@bloomberg.net
Last Updated: December 17, 2009 04:47 EST"
Dec. 17 (Bloomberg) -- Banco do Brasil SA is in talks to buy the U.S. assets of a foreign bank in distress, Valor Economico reported, citing an interview with Chief Executive Officer Aldemir Bendine.
While Bendine declined to identify the bank, he said it has 14 branches in the U.S., the Sao Paulo-based newspaper reported.
Banco do Brasil is planning also to expand through acquisitions or by opening its own operations in Peru, Colombia, Paraguay, Uruguay, Angola and Mozambique, Valor reported the CEO as saying. In Europe, the bank aims to boost its business through a Vienna-based subsidiary, he said.
Banco do Brasil announced talks to buy a stake in Argentina’s Banco Patagonia earlier this week.
To contact the reporter responsible for this story: Camila Fontana in Sao Paulo at cfontana@bloomberg.net
Last Updated: December 17, 2009 04:47 EST"
Wednesday, December 16, 2009
Paraguay-Brazil Energy Treaty Going Nowhere Fast - NYTimes.com
Paraguay-Brazil Energy Treaty Going Nowhere Fast
ASUNCION, Paraguay (AP) -- It's been nearly five months since the presidents of Brazil and Paraguay agreed on a breakthrough deal to triple Paraguay's income from the world's second-largest hydroelectric dam, but the money won't be flowing anytime soon.
The treaty would increase Paraguay's income from energy generated by the Itaipu dam on the shared Parana River to $360 million, money that Paraguay's President Fernando Lugo wants to spend on agrarian reform to benefit 300,000 landless peasant families.
It also calls for Brazil to invest in high-capacity power lines across Paraguay, creating an energy grid that could help one of South America's poorest countries reshape its agricultural economy.
The treaty, signed by Lugo and Luiz Inacio Lula Da Silva on July 25, was quickly approved by Paraguay's congress, but lawmakers in Brazil have yet to move the plan out of the first of four committees due to consider it -- partly because what Brazil mostly gets from the deal is good relations with its poorer neighbor.
''It is controversial. It's not a simple matter, because it carries more benefits for Paraguay than Brazil,'' Brazilian Rep. Severiano Alves, a member of the lower house's foreign relations committee, told The Associated Press.
He said both houses of Congress would probably vote on it in the first half of 2010.
Carlos Mateo Balmelli, Itaipu's Paraguayan director, has lobbied for the agreement, but Alves says Brazil should not be pressured.
''They didn't pay anything to build the dam -- they just provided territory and water from the river. Brazil was the one that assumed the cost of financing Itaipu,'' Alves said.
Itaipu's 20 huge turbines generate electricity divided equally between the neighbors, but Paraguay's much smaller population and economy consumes the energy of only one turbine. The current treaty forces Paraguay to sell its excess capacity to Brazil until 2023, without the possibility of selling the energy elsewhere, at far less than market prices.
The new treaty would increase Paraguay's income from $5.10 to $15.30 per megawatt/hour for excess power sold to Brazil. Lugo said the proposal has already succeeded in overcoming Paraguay's
isolation, a legacy of Alfredo Stroessners 1954-1989 dictatorship.
The existing treaty was signed in 1973, before the dam was built. Both countries took on loans to build it -- debt that now totals $17 billion. But Paraguay doesn't recognize $8 billion of it because it considers the debt to be illegally obtained by corrupt officials of the former government.
------
Associated Press Writer Marco Sibaja in Brasilia, Brazil contribued to this story.
ASUNCION, Paraguay (AP) -- It's been nearly five months since the presidents of Brazil and Paraguay agreed on a breakthrough deal to triple Paraguay's income from the world's second-largest hydroelectric dam, but the money won't be flowing anytime soon.
The treaty would increase Paraguay's income from energy generated by the Itaipu dam on the shared Parana River to $360 million, money that Paraguay's President Fernando Lugo wants to spend on agrarian reform to benefit 300,000 landless peasant families.
It also calls for Brazil to invest in high-capacity power lines across Paraguay, creating an energy grid that could help one of South America's poorest countries reshape its agricultural economy.
The treaty, signed by Lugo and Luiz Inacio Lula Da Silva on July 25, was quickly approved by Paraguay's congress, but lawmakers in Brazil have yet to move the plan out of the first of four committees due to consider it -- partly because what Brazil mostly gets from the deal is good relations with its poorer neighbor.
''It is controversial. It's not a simple matter, because it carries more benefits for Paraguay than Brazil,'' Brazilian Rep. Severiano Alves, a member of the lower house's foreign relations committee, told The Associated Press.
He said both houses of Congress would probably vote on it in the first half of 2010.
Carlos Mateo Balmelli, Itaipu's Paraguayan director, has lobbied for the agreement, but Alves says Brazil should not be pressured.
''They didn't pay anything to build the dam -- they just provided territory and water from the river. Brazil was the one that assumed the cost of financing Itaipu,'' Alves said.
Itaipu's 20 huge turbines generate electricity divided equally between the neighbors, but Paraguay's much smaller population and economy consumes the energy of only one turbine. The current treaty forces Paraguay to sell its excess capacity to Brazil until 2023, without the possibility of selling the energy elsewhere, at far less than market prices.
The new treaty would increase Paraguay's income from $5.10 to $15.30 per megawatt/hour for excess power sold to Brazil. Lugo said the proposal has already succeeded in overcoming Paraguay's
isolation, a legacy of Alfredo Stroessners 1954-1989 dictatorship.
The existing treaty was signed in 1973, before the dam was built. Both countries took on loans to build it -- debt that now totals $17 billion. But Paraguay doesn't recognize $8 billion of it because it considers the debt to be illegally obtained by corrupt officials of the former government.
------
Associated Press Writer Marco Sibaja in Brasilia, Brazil contribued to this story.
Brazil Holds TJLP Long-Term Interest Rate Unchanged At 6.00% - WSJ.com
Brazil Holds TJLP Long-Term Interest Rate Unchanged At 6.00%
BRASILIA (Dow Jones)--Brazil will maintain its TJLP long-term interest rate unchanged at 6.00% annually for the first quarter of 2010, the country's National Monetary Council, or CMN, announced Wednesday.
The TJLP, used on loans to businesses made by the government-backed Brazilian National Development Bank, has been held unchanged since the second quarter this year. The rate normally is based on expectations for inflation plus risk spreads on the country's sovereign debt. The government, however, didn't reveal the composition of the rate.
According to recent Brazilian central bank market surveys, Brazil's IPCA consumer price inflation is seen at around 4.5% over the coming 12 months.
Brazil's sovereign debt spreads, according to the J.P. Morgan Emerging Markets Bond Index Plus, stood at 191 points over U.S. Treasurys at Tuesday's market close.
The CMN is the Brazilian government's highest-ranking economic policy-making body. It's chaired by Finance Minister Guido Mantega and also includes Central Bank President Henrique Meirelles and Planning Minister Paulo Bernardo. The council reviews the TJLP rate every three months.
-By Gerald Jeffris, Dow Jones Newswires; (5561) 3335-0832; gerald.jeffris@dowjones.com
Reservas crescerão menos em 2010
Reservas crescerão menos em 2010
Os analistas de bancos são unânimes em apostar que o Brasil vai continuar a ter sobras de dólares em 2010 e que as reservas internacionais (o caixa do país em moeda estrangeira) vão continuar a crescer. Isso apesar das previsões de um déficit maior em conta corrente (que mede o comércio de bens e serviços) e de mais recursos externos necessários para financiá-lo.
Neste ano, o Banco Central já comprou US$ 25,572 bilhões no mercado interno de câmbio até o dia 4 de dezembro, segundo o último dado disponível. Absorveu parte importante do fluxo positivo de dólares ao país. Para 2010, as estimativas de bancos ouvidos pelo Valor são de que a autoridade monetária vai continuar a adquirir a moeda americana, mas em valores menores do que isso: de US$ 15 bilhões a, no máximo, US$ 20 bilhões.
Foto Destaque
As reservas internacionais, onde são contabilizados esses dólares adquiridos, devem crescer menos do que os US$ 38,3 bilhões até agora neste ano. Devem passar dos US$ 240 bilhões no final de 2009 para US$ 270 bilhões em 2010, com aproximadamente US$ 10 bilhões representando a própria valorização dos ativos nos quais o dinheiro das reservas é aplicado pelo Banco Central."
Cristiane Perini Lucchesi, de São Paulo Valor Online
Os analistas de bancos são unânimes em apostar que o Brasil vai continuar a ter sobras de dólares em 2010 e que as reservas internacionais (o caixa do país em moeda estrangeira) vão continuar a crescer. Isso apesar das previsões de um déficit maior em conta corrente (que mede o comércio de bens e serviços) e de mais recursos externos necessários para financiá-lo.
Neste ano, o Banco Central já comprou US$ 25,572 bilhões no mercado interno de câmbio até o dia 4 de dezembro, segundo o último dado disponível. Absorveu parte importante do fluxo positivo de dólares ao país. Para 2010, as estimativas de bancos ouvidos pelo Valor são de que a autoridade monetária vai continuar a adquirir a moeda americana, mas em valores menores do que isso: de US$ 15 bilhões a, no máximo, US$ 20 bilhões.
Foto Destaque
As reservas internacionais, onde são contabilizados esses dólares adquiridos, devem crescer menos do que os US$ 38,3 bilhões até agora neste ano. Devem passar dos US$ 240 bilhões no final de 2009 para US$ 270 bilhões em 2010, com aproximadamente US$ 10 bilhões representando a própria valorização dos ativos nos quais o dinheiro das reservas é aplicado pelo Banco Central."
Cristiane Perini Lucchesi, de São Paulo Valor Online
Brazil Interest Rate Future Yield Rises to Highest in 10 Months - Bloomberg.com
Brazil Interest Rate Future Yield Rises to Highest in 10 Months
Dec. 16 (Bloomberg) -- ...
Policy makers lowered the benchmark rate to a low of 8.75 percent in July. Brazilian economists expect an increase to 10.63 percent by the end of next year, according to a weekly central bank survey published on Dec. 14.
The real was little changed at 1.7513 per dollar at 9:44 a.m. in New York, from 1.7520 yesterday.
To contact the reporter responsible for this story: Camila Fontana in Sao Paulo at cfontana@bloomberg.net
Dec. 16 (Bloomberg) -- ...
Policy makers lowered the benchmark rate to a low of 8.75 percent in July. Brazilian economists expect an increase to 10.63 percent by the end of next year, according to a weekly central bank survey published on Dec. 14.
The real was little changed at 1.7513 per dollar at 9:44 a.m. in New York, from 1.7520 yesterday.
To contact the reporter responsible for this story: Camila Fontana in Sao Paulo at cfontana@bloomberg.net
Cinco municípios responderam por 25% do PIB do país em 2007, nota IBGE
Cinco municípios responderam por 25% do PIB do país em 2007, nota IBGE
RIO - Cinco municípios responderam por aproximadamente 25% de toda a renda gerada pelo país em 2007. De acordo com o PIB dos Municípios Brasileiros 2003-2007, divulgado hoje pelo Instituto Brasileiro de Geografia e Estatística (IBGE), São Paulo respondeu, em 2007, por 12% do PIB brasileiro, enquanto Rio de Janeiro ficou com 5,2%; Brasília com 3,8%; Belo Horizonte com 1,4% e Curitiba com 1,4%.
A pesquisa mostra ainda que os 45 municípios mais ricos do país responderam em 2007 por quase metade do PIB, agregando 30,5% da população brasileira. Já os 1.342 municípios com a menor participação relativa foram responsáveis, em conjunto, por 1% do PIB, contando com 3,5% da população do país.
Entre as regiões, a mais desigual em 2007 era a Centro-Oeste, onde Brasília respondeu por 42,4% do PIB regional. Retirando Brasília do cálculo, 16 outros municípios agregaram 50% das riquezas da região. No Norte, sete municípios foram responsáveis por 50% do PIB, enquanto, no Nordeste, foram necessários 21 municípios para atingir 50% do PIB; no Sul, foram 27 e no Sudeste, 13.
De acordo com o IBGE, os cinco municípios com menor PIB foram Olho D´Água do Piauí, São Luís do Piauí, Areia de Baraúnas (Paraíba), São Miguel da Baixa Grande (Piauí) e Santo Antônio dos Milagres (Piauí).
O conjunto das capitais brasileiras representava, em 2007, 34,4% da renda nacional, sendo que as capitais no Norte foram responsáveis pro 2,4% do total; as do Nordeste por 4,5%; as do Sul por 2,9%; as do Centro-Oeste por 5,1%; e as do Sudeste por 19,4%. Apenas Florianópolis, em Santa Catarina, não apresentou o maior PIB do Estado, ficando atrás de Joinville e de Itajaí.
No total, o país fechou o ano de 2007 com 25 municípios com participação superior a 0,5% do PIB do país. Deste total, dez (São Paulo, Osasco, São Bernardo do Campo, Santos, Jundiaí, Campinas, São José dos Campos, Santo André, Barueri e Guarulhos) ficam no Estado de São Paulo; três no Rio de Janeiro (Rio de Janeiro, Duque de Caxias e Campos dos Goytacazes); dois em Minas Gerais (Belo Horizonte e Betim) e mais as capitais Curitiba, Vitória, Recife, Goiânia, Belém, Salvador, Porto Alegre, Fortaleza, Brasília e Manaus."
RIO - Cinco municípios responderam por aproximadamente 25% de toda a renda gerada pelo país em 2007. De acordo com o PIB dos Municípios Brasileiros 2003-2007, divulgado hoje pelo Instituto Brasileiro de Geografia e Estatística (IBGE), São Paulo respondeu, em 2007, por 12% do PIB brasileiro, enquanto Rio de Janeiro ficou com 5,2%; Brasília com 3,8%; Belo Horizonte com 1,4% e Curitiba com 1,4%.
A pesquisa mostra ainda que os 45 municípios mais ricos do país responderam em 2007 por quase metade do PIB, agregando 30,5% da população brasileira. Já os 1.342 municípios com a menor participação relativa foram responsáveis, em conjunto, por 1% do PIB, contando com 3,5% da população do país.
Entre as regiões, a mais desigual em 2007 era a Centro-Oeste, onde Brasília respondeu por 42,4% do PIB regional. Retirando Brasília do cálculo, 16 outros municípios agregaram 50% das riquezas da região. No Norte, sete municípios foram responsáveis por 50% do PIB, enquanto, no Nordeste, foram necessários 21 municípios para atingir 50% do PIB; no Sul, foram 27 e no Sudeste, 13.
De acordo com o IBGE, os cinco municípios com menor PIB foram Olho D´Água do Piauí, São Luís do Piauí, Areia de Baraúnas (Paraíba), São Miguel da Baixa Grande (Piauí) e Santo Antônio dos Milagres (Piauí).
O conjunto das capitais brasileiras representava, em 2007, 34,4% da renda nacional, sendo que as capitais no Norte foram responsáveis pro 2,4% do total; as do Nordeste por 4,5%; as do Sul por 2,9%; as do Centro-Oeste por 5,1%; e as do Sudeste por 19,4%. Apenas Florianópolis, em Santa Catarina, não apresentou o maior PIB do Estado, ficando atrás de Joinville e de Itajaí.
No total, o país fechou o ano de 2007 com 25 municípios com participação superior a 0,5% do PIB do país. Deste total, dez (São Paulo, Osasco, São Bernardo do Campo, Santos, Jundiaí, Campinas, São José dos Campos, Santo André, Barueri e Guarulhos) ficam no Estado de São Paulo; três no Rio de Janeiro (Rio de Janeiro, Duque de Caxias e Campos dos Goytacazes); dois em Minas Gerais (Belo Horizonte e Betim) e mais as capitais Curitiba, Vitória, Recife, Goiânia, Belém, Salvador, Porto Alegre, Fortaleza, Brasília e Manaus."
Valor Online (Rafael Rosas | Valor)
16/12/2009 10:21
Tuesday, December 15, 2009
Spain's Elecnor to build 96 MW wind parks in Brazil | Markets | Reuters
Spain's Elecnor to build 96 MW wind parks in Brazil
MADRID, Dec 15 (Reuters) - Spanish energy firm Elecnor (ENOR.MC) on Tuesday said it had won a contract worth 183 million euros ($266.1 million) to build five wind parks in Brazil.
The company added in a statement that the parks in the southern Brazilian state of Rio Grande do Sul would have a total generating capacity of 96 megawatts. (Reporting by Tomas Gonzalez; Writing by Martin Roberts)"
MADRID, Dec 15 (Reuters) - Spanish energy firm Elecnor (ENOR.MC) on Tuesday said it had won a contract worth 183 million euros ($266.1 million) to build five wind parks in Brazil.
The company added in a statement that the parks in the southern Brazilian state of Rio Grande do Sul would have a total generating capacity of 96 megawatts. (Reporting by Tomas Gonzalez; Writing by Martin Roberts)"
Brazil Sells $500 Million of Bonds to Yield 4.75%
Brazil Sells $500 Million of Bonds to Yield 4.75%
Dec. 15 (Bloomberg) -- Brazil sold $500 million of 10-year bonds in the country’s fifth international dollar bond offering this year.
The South American country sold the bonds to yield 4.75 percent, down from 6.13 percent in an initial offering in January and from 5.80 percent in a second sale in May. Today’s yield was 1.14 percentage points more than U.S. Treasuries. The government said in a statement it plans to sell up to $25 million of the securities in Asian markets.
Brazil tapped debt markets as a global economic recovery fuels demand for the securities. Emerging-market debt sales rose 83 percent to a record $597 billion this year, according to Bloomberg data. Brazil is returning to overseas markets after Abu Dhabi’s bailout yesterday of Dubai World boosted demand for higher-yielding assets, said Paul Biszko, emerging-markets strategist at RBC Capital Markets in Toronto.
“Brazil is using Dubai as an opportunity to issue now versus a potentially even more volatile backdrop next year,” Biszko said.
The yield on Brazil’s 5.875 percent bonds due in 2019 fell to 4.65 percent from 6.44 percent on Jan. 8, according to JPMorgan Chase & Co. The bond’s price rose to 109.02 cents on the dollar from 95.90 cents during that period.
Morgan Stanley and Goldman Sachs Group Inc. arranged today’s bond offering, said a person familiar with the transaction who declined to be identified because he’s not allowed to speak publicly.
To contact the reporters responsible for this story: Francisco Marcelino at mdeoliveira@bloomberg.net; Veronica Espinosa in New York at vespinosa@bloomberg.net.
Last Updated: December 15, 2009 16:50 EST
Dec. 15 (Bloomberg) -- Brazil sold $500 million of 10-year bonds in the country’s fifth international dollar bond offering this year.
The South American country sold the bonds to yield 4.75 percent, down from 6.13 percent in an initial offering in January and from 5.80 percent in a second sale in May. Today’s yield was 1.14 percentage points more than U.S. Treasuries. The government said in a statement it plans to sell up to $25 million of the securities in Asian markets.
Brazil tapped debt markets as a global economic recovery fuels demand for the securities. Emerging-market debt sales rose 83 percent to a record $597 billion this year, according to Bloomberg data. Brazil is returning to overseas markets after Abu Dhabi’s bailout yesterday of Dubai World boosted demand for higher-yielding assets, said Paul Biszko, emerging-markets strategist at RBC Capital Markets in Toronto.
“Brazil is using Dubai as an opportunity to issue now versus a potentially even more volatile backdrop next year,” Biszko said.
The yield on Brazil’s 5.875 percent bonds due in 2019 fell to 4.65 percent from 6.44 percent on Jan. 8, according to JPMorgan Chase & Co. The bond’s price rose to 109.02 cents on the dollar from 95.90 cents during that period.
Morgan Stanley and Goldman Sachs Group Inc. arranged today’s bond offering, said a person familiar with the transaction who declined to be identified because he’s not allowed to speak publicly.
To contact the reporters responsible for this story: Francisco Marcelino at mdeoliveira@bloomberg.net; Veronica Espinosa in New York at vespinosa@bloomberg.net.
Last Updated: December 15, 2009 16:50 EST
Emerging-Market Debt Trading Rises 19%, EMTA Says - Business Exchange
Emerging-Market Debt Trading Rises 19%, EMTA Says
Brazilian debt tallied the second-most trading volume, with $155 billion in turnover.
The extra yield investors demand to own developing-nation bonds instead of U.S. Treasuries shrank to 2.93 percentage points from 6.90 percentage points on Dec. 31, according to JPMorgan Chase & Co.’s EMBI+ Index.
Emerging-market corporate bond trading totaled $175 billion in the third quarter, a 98 percent increase from the same period last year, according to the survey.
To contact the reporters responsible for this story: Veronica Espinosa in New York at vespinosa@bloomberg.net.
Brazilian debt tallied the second-most trading volume, with $155 billion in turnover.
The extra yield investors demand to own developing-nation bonds instead of U.S. Treasuries shrank to 2.93 percentage points from 6.90 percentage points on Dec. 31, according to JPMorgan Chase & Co.’s EMBI+ Index.
Emerging-market corporate bond trading totaled $175 billion in the third quarter, a 98 percent increase from the same period last year, according to the survey.
To contact the reporters responsible for this story: Veronica Espinosa in New York at vespinosa@bloomberg.net.
Brazil Launches $500M 2019 Reopened Bonds At 4.75%
Brazil Launches $500M 2019 Reopened Bonds At 4.75%
NEW YORK (Dow Jones)--Brazil launched $500 million of 2019 global bonds at 4.75% Tuesday, according to a person familiar with the deal.
The Brazilian Treasury announced Tuesday the reopening of its 2019 global sovereign bond, expanding the current $1.775 billion issue by $500 million. The coupon is 5.875%.
The books on the deal for New York and Europe were closed at about 11 a.m. EST and were said to be oversubscribed.
However, people familiar with the matter said the treasury has no intention of increasing the amount of the offer, even in the event of heavy demand.
The issue may only be increased during the Asian trading session by up to 5% for investors unable to participate during this time zone.
Morgan Stanley and Goldman Sachs are joint bookrunners on the issue.
Dedicated emerging-market investors weren't keen on participating, even though most are broadly optimistic on Brazil's economy as a whole.
'Brazil as country, we're quite bullish on fundamentals,' said one big fund manager. 'But the market has more than priced that in. So, generally, we're underweight Brazil.' However, they said that the fund will use this reopening to rebalance its portfolio.
Kevin Daly, an emerging market portfolio manager at Aberdeen Investment Managers in London, said: 'Brazil just doesn't yield anything. It's just ridiculously low.'
Interested investors are likely global government bond funds, crossover investors, and those that need to rebalance their portfolios if they have too much cash at the end of the year, he said.
Brazil first issued the 2019 bond in January with a volume of $1.025 billion. The bond came with a coupon rate of 5.875% and a yield of 6.13%. In May, the treasury reopened the 2019 bond, raising an additional $750 million at an annual yield of 5.8%.
Earlier this month, Treasury Secretary Arno Augustin told Dow Jones Newswires that Brazil's government was likely to issue another 10-year overseas bond before the end of the year.
'We are looking to build a better yield curve and improve the quality of our debt management,' Augustin said at that time.
Brazil's is enjoying its investment grade status to access the debt market. In September, Moody's Investors Service raised Brazil's sovereign credit rating to Baa3, an investment-grade rating, more than a year after Standard & Poor's and Fitch Rating elevated Brazil to investment grade.
-By Riva Froymovich, Dow Jones Newswires; 212-416-2217; riva.froymovich@dowjones.com
-By Tom Murphy and Rogerio Jelmayer, Dow Jones Newswires; 55-11-2847-4519; brazil@dowjones.com"
NEW YORK (Dow Jones)--Brazil launched $500 million of 2019 global bonds at 4.75% Tuesday, according to a person familiar with the deal.
The Brazilian Treasury announced Tuesday the reopening of its 2019 global sovereign bond, expanding the current $1.775 billion issue by $500 million. The coupon is 5.875%.
The books on the deal for New York and Europe were closed at about 11 a.m. EST and were said to be oversubscribed.
However, people familiar with the matter said the treasury has no intention of increasing the amount of the offer, even in the event of heavy demand.
The issue may only be increased during the Asian trading session by up to 5% for investors unable to participate during this time zone.
Morgan Stanley and Goldman Sachs are joint bookrunners on the issue.
Dedicated emerging-market investors weren't keen on participating, even though most are broadly optimistic on Brazil's economy as a whole.
'Brazil as country, we're quite bullish on fundamentals,' said one big fund manager. 'But the market has more than priced that in. So, generally, we're underweight Brazil.' However, they said that the fund will use this reopening to rebalance its portfolio.
Kevin Daly, an emerging market portfolio manager at Aberdeen Investment Managers in London, said: 'Brazil just doesn't yield anything. It's just ridiculously low.'
Interested investors are likely global government bond funds, crossover investors, and those that need to rebalance their portfolios if they have too much cash at the end of the year, he said.
Brazil first issued the 2019 bond in January with a volume of $1.025 billion. The bond came with a coupon rate of 5.875% and a yield of 6.13%. In May, the treasury reopened the 2019 bond, raising an additional $750 million at an annual yield of 5.8%.
Earlier this month, Treasury Secretary Arno Augustin told Dow Jones Newswires that Brazil's government was likely to issue another 10-year overseas bond before the end of the year.
'We are looking to build a better yield curve and improve the quality of our debt management,' Augustin said at that time.
Brazil's is enjoying its investment grade status to access the debt market. In September, Moody's Investors Service raised Brazil's sovereign credit rating to Baa3, an investment-grade rating, more than a year after Standard & Poor's and Fitch Rating elevated Brazil to investment grade.
-By Riva Froymovich, Dow Jones Newswires; 212-416-2217; riva.froymovich@dowjones.com
-By Tom Murphy and Rogerio Jelmayer, Dow Jones Newswires; 55-11-2847-4519; brazil@dowjones.com"
Pride sues Brazil's GP Investments for $44 mln | Reuters
Pride sues Brazil's GP Investments for $44 mln
NEW YORK, Dec 15 (Reuters) - Pride International Inc (PDE.N), an oil and gas service company, sued Brazilian private equity firm GP Investments Ltd GPIV11.LU and its Argentine subsidiary for $44 million Pride said they owe in a stock purchase agreement.
The lawsuit filed on Monday in Manhattan federal court in New York said the agreement on Aug. 9, 2007, with Sao Paolo-based GP and San Antonio Oil & Gas Services Ltd of Buenos Aires was for the sale of Pride's Latin America land-based drilling, exploration and production services business.
Ernst & Young [ERNY.UL] accounting firm determined the amount owed after the closing of the deal and GP and San Antonio failed to meet a contractual deadline of Dec. 21, 2008 to pay, the lawsuit said.
'Despite continuing to tout their financial stability, success, and business principles to the international business and investment community, GP and San Antonio are apparently either unwilling or unable to pay the over $44 million owed to plaintiffs under the agreement,' the lawsuit said.
An attorney for GP Investments could not immediately be reached for comment.
The case is Pride International Inc et al v GP Investments Ltd, U.S. District Court for the Southern District of New York, No. 09-10174.
(Reporting by Grant McCool; Editing by Richard Chang)"
NEW YORK, Dec 15 (Reuters) - Pride International Inc (PDE.N), an oil and gas service company, sued Brazilian private equity firm GP Investments Ltd GPIV11.LU and its Argentine subsidiary for $44 million Pride said they owe in a stock purchase agreement.
The lawsuit filed on Monday in Manhattan federal court in New York said the agreement on Aug. 9, 2007, with Sao Paolo-based GP and San Antonio Oil & Gas Services Ltd of Buenos Aires was for the sale of Pride's Latin America land-based drilling, exploration and production services business.
Ernst & Young [ERNY.UL] accounting firm determined the amount owed after the closing of the deal and GP and San Antonio failed to meet a contractual deadline of Dec. 21, 2008 to pay, the lawsuit said.
'Despite continuing to tout their financial stability, success, and business principles to the international business and investment community, GP and San Antonio are apparently either unwilling or unable to pay the over $44 million owed to plaintiffs under the agreement,' the lawsuit said.
An attorney for GP Investments could not immediately be reached for comment.
The case is Pride International Inc et al v GP Investments Ltd, U.S. District Court for the Southern District of New York, No. 09-10174.
(Reporting by Grant McCool; Editing by Richard Chang)"
Monday, December 14, 2009
Brazil Corporate Bond Sales to Rise, Coutinho Says
Dec. 14 (Bloomberg) -- Brazil’s local-currency corporate debt market is poised for a “golden year” in 2010 as investor appetite for longer-maturity real-denominated assets increases, said Luciano Coutinho, president of the state development bank.
Brazil has “great potential” for a secondary market for corporate bonds, and BNDES, as the development bank is known, is prepared to help build it, Coutinho said. Larger Brazilian companies with “good” credit ratings will be able to issue real-denominated debt next year in addition to selling shares, Coutinho said.
“We expect 2010 will be a golden year for the development of the corporate bond market,” Coutinho told reporters in Sao Paulo. “The capital markets have robust and immediate opportunities for expansion.”
more: Brazil Corporate Bond Sales to Rise, Coutinho Says
Brazil has “great potential” for a secondary market for corporate bonds, and BNDES, as the development bank is known, is prepared to help build it, Coutinho said. Larger Brazilian companies with “good” credit ratings will be able to issue real-denominated debt next year in addition to selling shares, Coutinho said.
“We expect 2010 will be a golden year for the development of the corporate bond market,” Coutinho told reporters in Sao Paulo. “The capital markets have robust and immediate opportunities for expansion.”
more: Brazil Corporate Bond Sales to Rise, Coutinho Says
Friday, December 11, 2009
BTG to create Brazil infrastructure fund-executive | Reuters
BTG to create Brazil infrastructure fund-executive
SAO PAULO, Dec 11 (Reuters) - BTG Pactual, the securities firm led by Andre Esteves, is set to launch a private equity-backed Brazilian infrastructure fund, to take advantage of massive road, port and dam projects, a senior executive said.
Private Capital
'With expectations of growth coming around 5 percent next year, the need for infrastructure investment will be huge,' Eduardo Cutolo, an executive director at Sao Paulo-based BTG Pactual, told reporters late on Thursday.
Private equity investment is expected to grow next year as the country's growth prospects and declining interest rates draw a new class of risk-hungry investors.
Brazil makes up for about half of Latin America's gross domestic product and in the past four years represented 45 percent of all private equity investments in the region, according to Emerging Markets Private Equity Association data.
Cutolo did not give details on the terms or size of the fund.
Esteves and his partners sold Rio de Janeiro-based Pactual to UBS AG (UBSN.VX) in 2006 and later became global head of fixed-income, currencies and commodities at the Swiss bank. He formed BTG last year with some of his former partners at Pactual.
Less than four months after quitting his UBS job in 2008, Esteves and his partners in BTG moved to buy Lehman Brothers Inc.'s Brazil unit to expand its trading muscle. BTG bought back Pactual from UBS for about $2.5 billion in a deal concluded in September this year.
The bank aims at taking up the slack left by global investment funds and banks that had to flee emerging markets amid the worst financial crisis in eight decades. Cutolo reiterated that BTG Pactual wants to become the largest emerging markets-based securities firm in a few years. (Reporting by Aluisio Alves; Writing by Guillermo Parra-Bernal; editing by Simon Jessop)
SAO PAULO, Dec 11 (Reuters) - BTG Pactual, the securities firm led by Andre Esteves, is set to launch a private equity-backed Brazilian infrastructure fund, to take advantage of massive road, port and dam projects, a senior executive said.
Private Capital
'With expectations of growth coming around 5 percent next year, the need for infrastructure investment will be huge,' Eduardo Cutolo, an executive director at Sao Paulo-based BTG Pactual, told reporters late on Thursday.
Private equity investment is expected to grow next year as the country's growth prospects and declining interest rates draw a new class of risk-hungry investors.
Brazil makes up for about half of Latin America's gross domestic product and in the past four years represented 45 percent of all private equity investments in the region, according to Emerging Markets Private Equity Association data.
Cutolo did not give details on the terms or size of the fund.
Esteves and his partners sold Rio de Janeiro-based Pactual to UBS AG (UBSN.VX) in 2006 and later became global head of fixed-income, currencies and commodities at the Swiss bank. He formed BTG last year with some of his former partners at Pactual.
Less than four months after quitting his UBS job in 2008, Esteves and his partners in BTG moved to buy Lehman Brothers Inc.'s Brazil unit to expand its trading muscle. BTG bought back Pactual from UBS for about $2.5 billion in a deal concluded in September this year.
The bank aims at taking up the slack left by global investment funds and banks that had to flee emerging markets amid the worst financial crisis in eight decades. Cutolo reiterated that BTG Pactual wants to become the largest emerging markets-based securities firm in a few years. (Reporting by Aluisio Alves; Writing by Guillermo Parra-Bernal; editing by Simon Jessop)
Brazil’s Real to Surpass 1.50 Per Dollar, Booth Says
Dec. 11 (Bloomberg) -- Brazil’s real may appreciate “way past” 1.50 per U.S. dollar next year as investors flock to Latin America’s largest economy, said Ashmore Group Plc’s Jerome Booth.
Brazil’s benchmark interest rate may climb by 2 percentage points next year from a record low of 8.75 percent, Booth, chief of research at the London-based firm that oversees $31 billion of assets, said in a telephone interview.
“Brazilian rates are going to go up, but they’re not going to go up the 400 basis points that some people think,” Booth said. “The currency I would expect to rally considerably. Way past 1.50.”
...“The perception of risk needs changing radically,” Booth said. “The investor that is thinking of maybe putting 5 percent in emerging markets needs to rethink and realize that being 95 percent in developed markets is very risky.”
more: Brazil’s Real to Surpass 1.50 Per Dollar, Booth Says
Brazil’s benchmark interest rate may climb by 2 percentage points next year from a record low of 8.75 percent, Booth, chief of research at the London-based firm that oversees $31 billion of assets, said in a telephone interview.
“Brazilian rates are going to go up, but they’re not going to go up the 400 basis points that some people think,” Booth said. “The currency I would expect to rally considerably. Way past 1.50.”
...“The perception of risk needs changing radically,” Booth said. “The investor that is thinking of maybe putting 5 percent in emerging markets needs to rethink and realize that being 95 percent in developed markets is very risky.”
more: Brazil’s Real to Surpass 1.50 Per Dollar, Booth Says
Wednesday, December 9, 2009
Agência Senado - 09/12/2009 - Promulgada emenda dos precatórios
Agência Senado - 09/12/2009 - Promulgada emenda dos precatórios
![[Foto: ]](http://www.senado.gov.br/noticia/multimidia/verImagem.aspx?codImagem=195310 "[Foto: ]")
CONGRESSO
09/12/2009 - 11h31
09/12/2009 - 11h31
Promulgada emenda dos precatórios
Em sessão solene presidida pelo deputado Marco Maia (PT-RS), vice-presidente da Câmara dos Deputados, o Congresso Nacional promulgou, na manhã desta quarta-feira (09), a Emenda Constitucional 62/09, que altera as regras para pagamento de precatórios, como são chamadas as dívidas judiciais da União, estados, Distrito Federal e municípios. Leu o texto o deputado Inocêncio Oliveira (PR-PE), 1º secretário da Câmara.
A emenda cria um regime especial segundo o qual a quitação dos precatórios alimentares e de menor valor terá prioridade sobre os demais. O texto promulgado também obriga os municípios a destinarem entre 1% e 1,5% de suas receitas correntes líquidas para o pagamento dos precatórios. Esse percentual, para os estados, fica entre 1,5% e 2%. A emenda estabelece ainda que os valores das dívidas sofrerão atualização monetária de acordo com as regras da caderneta de poupança.
Conforme o estabelecido pela emenda, 50% dos recursos dos precatórios serão usados para pagamento conforme ordem cronológica e à vista. A outra metade da dívida deverá ser quitada por meio de leilões, onde o credor que conceder o maior desconto sobre o total da dívida a receber terá seu crédito quitado primeiro. Também estão previstos pagamentos por ordem crescente de débito ou por conciliação entre as partes.Teresa Cardoso / Agência Senado
(Reprodução autorizada mediante citação da Agência Senado)
(Reprodução autorizada mediante citação da Agência Senado)
Tuesday, December 8, 2009
Rates Rise As Brazil Sells BRL1.25B NTN-Bs At 6.26%-6.83% - WSJ.com
Rates Rise As Brazil Sells BRL1.25B NTN-Bs At 6.26%-6.83%
BRASILIA (Dow Jones)--Brazil's federal treasury sold BRL1.25 billion($714.2 million) worth of NTN-B inflation-linked bonds on auction Tuesday at a slightly higher range of interest rates than seen at recent auctions.
The government sold bonds with six maturities ranging from Nov. 2011, to May 2045 at average interest rates ranging from 6.26% to 6.83%. Those compared with rates ranging from 6.16% to 6.78% at an auction of similar maturities held on Nov. 24.
NTN-B bonds pay a rate equal to Brazil's official IPCA inflation rate plus an interest rate established at the auction.
Traders said the yields seen at Tuesday's auction reflected expectations of gradually accelerating inflation and rising interest rates for the coming year.
Brazil's 12-month IPCA consumer price inflation through mid-November rose 4.09% versus a 4.14% advance in the same period through mid-October.
The latest figure remained below the government's official inflation target of 4.5%, however recent market estimates have pointed toward accelerating inflation in the year ahead.
According to a weekly central bank market survey released Monday, IPCA inflation is seen ending 2010 at 4.48%. The same survey shows the country's reference Selic interest rate rising to 10.6% annually from a current 8.75%.
-By Gerald Jeffris, Dow Jones Newswires; (5561) 3335-0832, gerald.jeffris@dowjones.com"
BRASILIA (Dow Jones)--Brazil's federal treasury sold BRL1.25 billion($714.2 million) worth of NTN-B inflation-linked bonds on auction Tuesday at a slightly higher range of interest rates than seen at recent auctions.
The government sold bonds with six maturities ranging from Nov. 2011, to May 2045 at average interest rates ranging from 6.26% to 6.83%. Those compared with rates ranging from 6.16% to 6.78% at an auction of similar maturities held on Nov. 24.
NTN-B bonds pay a rate equal to Brazil's official IPCA inflation rate plus an interest rate established at the auction.
Traders said the yields seen at Tuesday's auction reflected expectations of gradually accelerating inflation and rising interest rates for the coming year.
Brazil's 12-month IPCA consumer price inflation through mid-November rose 4.09% versus a 4.14% advance in the same period through mid-October.
The latest figure remained below the government's official inflation target of 4.5%, however recent market estimates have pointed toward accelerating inflation in the year ahead.
According to a weekly central bank market survey released Monday, IPCA inflation is seen ending 2010 at 4.48%. The same survey shows the country's reference Selic interest rate rising to 10.6% annually from a current 8.75%.
-By Gerald Jeffris, Dow Jones Newswires; (5561) 3335-0832, gerald.jeffris@dowjones.com"
Monday, December 7, 2009
Brazil's Belo Monte Not Seen As Essential To Energy Demand - WSJ.com
SAO PAULO (Dow Jones)--Brazil's lights will stay on whether or not the planned Belo Monte hydroelectric dam ever sees the light of day, some top sector analysts said Monday.
'Our view is that Brazil will not lack power supply if Belo Monte does not get built because thermoelectric power companies and wind power will be available to meet demand,' said Marcos Severine, a senior analyst at Itau Securities in Sao Paulo.
The drama over the 11,000 megawatt power station has many local pundits saying that Brazil will not meet energy demand right around the time the nation hosts the World Cup in 2014 and the Olympic games in 2016.
Although Brazilians are notorious for talking their country into a catastrophe, Walter Vitto, an industry consultant at Tendencias in Sao Paulo, said where Belo Monte fails, coal and natural gas will find their niche.
'We are not going to be facing the chaotic rolling blackouts we faced in 2000 and 2001,' he said. Back then, the government was reining in spending and private energy companies were not investing in expansion due to uncertainties over the new, regulated energy market policies being created at the time.
'There is certainly the risk that hydroelectric power won't be able to meet demand, but then the new natural gas, wind and coal fired plants will be able to make up for it,' Vitto said.
The Belo Monte dam was supposed to be auctioned off to bidders in December but that has been postponed because the environmental protection agency, Ibama, has not yet signed off on the project.
The dam will be Brazil's second largest power station behind the Itaipu dam in the south, which has installed capacity to generate 14,000 megawatts of electricity.
Later this month, the government will hold the so-called A-5 energy auction. The auction, designed to meet energy demand in five years' time, is dominated by natural gas and coal-fired power companies.
Nearly 80% of Brazil's electric power comes from hydroelectric dams.
-By Kenneth Rapoza, Dow Jones Newswires; 5511-2847-4541; kenneth.rapoza@dowjones.com"
Brazil's Belo Monte Not Seen As Essential To Energy Demand
'Our view is that Brazil will not lack power supply if Belo Monte does not get built because thermoelectric power companies and wind power will be available to meet demand,' said Marcos Severine, a senior analyst at Itau Securities in Sao Paulo.
The drama over the 11,000 megawatt power station has many local pundits saying that Brazil will not meet energy demand right around the time the nation hosts the World Cup in 2014 and the Olympic games in 2016.
Although Brazilians are notorious for talking their country into a catastrophe, Walter Vitto, an industry consultant at Tendencias in Sao Paulo, said where Belo Monte fails, coal and natural gas will find their niche.
'We are not going to be facing the chaotic rolling blackouts we faced in 2000 and 2001,' he said. Back then, the government was reining in spending and private energy companies were not investing in expansion due to uncertainties over the new, regulated energy market policies being created at the time.
'There is certainly the risk that hydroelectric power won't be able to meet demand, but then the new natural gas, wind and coal fired plants will be able to make up for it,' Vitto said.
The Belo Monte dam was supposed to be auctioned off to bidders in December but that has been postponed because the environmental protection agency, Ibama, has not yet signed off on the project.
The dam will be Brazil's second largest power station behind the Itaipu dam in the south, which has installed capacity to generate 14,000 megawatts of electricity.
Later this month, the government will hold the so-called A-5 energy auction. The auction, designed to meet energy demand in five years' time, is dominated by natural gas and coal-fired power companies.
Nearly 80% of Brazil's electric power comes from hydroelectric dams.
-By Kenneth Rapoza, Dow Jones Newswires; 5511-2847-4541; kenneth.rapoza@dowjones.com"
Brazil's Belo Monte Not Seen As Essential To Energy Demand
Sunday, December 6, 2009
Brazil Treasury Secretary: Overseas Bond Likely In December - WSJ.com
Brazil Treasury Secretary: Overseas Bond Likely In December
SAO PAULO (Dow Jones)--Brazil's government likely will issue another overseas bond before the end of the year, Treasury Secretary Arno Augustin said Friday.
'We are looking to build a better yield curve and improve the quality of our debt management,' Augustin said in a telephone interview.
He said the bond likely would be denominated in U.S. dollars and carry a 10-year term. He said it was possible the government would reopen its 2019 bond. He didn't offer any idea about the size of the offer.
Augustin said the government was also studying a possible overseas bond denominated in the Brazilian real. 'This is on our agenda,' he said. 'However, it is not likely for the short term since rates for dollar-denominated bonds are so good right now. A real-denominated issue is possible in 2010.'
Brazil has accessed the international debt market four times this year. In January, Brazil issued $1.025 billion in global bonds due in 2019. The bonds were sold at a yield of 6.127%. In May, it reopened the operation, raising another $750 million at a yield of 5.8%.
In July, the treasury obtained $525 million from the issue of an overseas bond due in 2037, with a yield of 6.45%. At the end of September, it raised $1.27 billion with the issue of a global bond due 2041, with a yield of 5.8%.
In the September operation, the government took advantage of a sovereign upgrade by Moody's, tapping the international bond market to fill out its debt curve.
In September, Moody's Investors Service raised Brazil's sovereign credit rating to Baa3, an investment-grade rating, more than a year after Standard & Poor's and Fitch Rating did so.
Brazil has issued real-denominated bonds overseas before, most recently in May 2008. At that time, it raised 750 million Brazilian reals ($441 million) from the reopening of an existing 2028 bond.
'Given the current international environment of low interest rates, Brazil's government will continue its policy of repurchasing overseas debt,' Augustin said.
In 2008, Brazil repurchased overseas bonds with total face value of $1.2 billion.
'We would like to buy more, but investors seem like they want to hold on to their Brazilian paper,' Augustin said.
The treasury secretary said Brazil's government will release its annual domestic debt management plan at the beginning of 2010. 'I can already tell you at least one thing about the plan,' Augustin said. 'We will aim to reduce the debt-to-GDP ratio next year.'
The debt-to-GDP ratio was 44.8% as of Oct. 31, up from 36.0% at the end of 2008. Brazil's public sector debt rose this year because of the global recession, which caused a decline in tax revenue.
But Brazil's economy is expected to rebound in 2010. Most economists are expecting growth of 5% next year after an expansion of no more than 1% for 2009.
Regarding Brazil's volatile foreign exchange market, Augustin said, 'We are closely monitoring the exchange rate, and we will be ready to correct any distortions.'
The Brazilian real has gained about 35% against the U.S. dollar so far in 2009, causing worries for exporters.
Augustin said Brazil's government will continue its policy of systematic purchases of U.S. dollars in order to build foreign reserves. 'This policy will continue, managed by the central bank,' he said.
Brazil's reserves stood at $238 billion at the end of November, up $5 billion from the previous month.
-By Rogerio Jelmayer, Dow Jones Newswires; 55-11-2847-4519; brazil@dowjones.com"
SAO PAULO (Dow Jones)--Brazil's government likely will issue another overseas bond before the end of the year, Treasury Secretary Arno Augustin said Friday.
'We are looking to build a better yield curve and improve the quality of our debt management,' Augustin said in a telephone interview.
He said the bond likely would be denominated in U.S. dollars and carry a 10-year term. He said it was possible the government would reopen its 2019 bond. He didn't offer any idea about the size of the offer.
Augustin said the government was also studying a possible overseas bond denominated in the Brazilian real. 'This is on our agenda,' he said. 'However, it is not likely for the short term since rates for dollar-denominated bonds are so good right now. A real-denominated issue is possible in 2010.'
Brazil has accessed the international debt market four times this year. In January, Brazil issued $1.025 billion in global bonds due in 2019. The bonds were sold at a yield of 6.127%. In May, it reopened the operation, raising another $750 million at a yield of 5.8%.
In July, the treasury obtained $525 million from the issue of an overseas bond due in 2037, with a yield of 6.45%. At the end of September, it raised $1.27 billion with the issue of a global bond due 2041, with a yield of 5.8%.
In the September operation, the government took advantage of a sovereign upgrade by Moody's, tapping the international bond market to fill out its debt curve.
In September, Moody's Investors Service raised Brazil's sovereign credit rating to Baa3, an investment-grade rating, more than a year after Standard & Poor's and Fitch Rating did so.
Brazil has issued real-denominated bonds overseas before, most recently in May 2008. At that time, it raised 750 million Brazilian reals ($441 million) from the reopening of an existing 2028 bond.
'Given the current international environment of low interest rates, Brazil's government will continue its policy of repurchasing overseas debt,' Augustin said.
In 2008, Brazil repurchased overseas bonds with total face value of $1.2 billion.
'We would like to buy more, but investors seem like they want to hold on to their Brazilian paper,' Augustin said.
The treasury secretary said Brazil's government will release its annual domestic debt management plan at the beginning of 2010. 'I can already tell you at least one thing about the plan,' Augustin said. 'We will aim to reduce the debt-to-GDP ratio next year.'
The debt-to-GDP ratio was 44.8% as of Oct. 31, up from 36.0% at the end of 2008. Brazil's public sector debt rose this year because of the global recession, which caused a decline in tax revenue.
But Brazil's economy is expected to rebound in 2010. Most economists are expecting growth of 5% next year after an expansion of no more than 1% for 2009.
Regarding Brazil's volatile foreign exchange market, Augustin said, 'We are closely monitoring the exchange rate, and we will be ready to correct any distortions.'
The Brazilian real has gained about 35% against the U.S. dollar so far in 2009, causing worries for exporters.
Augustin said Brazil's government will continue its policy of systematic purchases of U.S. dollars in order to build foreign reserves. 'This policy will continue, managed by the central bank,' he said.
Brazil's reserves stood at $238 billion at the end of November, up $5 billion from the previous month.
-By Rogerio Jelmayer, Dow Jones Newswires; 55-11-2847-4519; brazil@dowjones.com"
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