Remember the tiff between US and Chinese regulators over accounting regulatory standards? You know, the one that resulted in the SEC charging the Chinese affiliates of the Big Four audit firms (plus BDO) with violating US securities law after the five firms allegedly refused to turn over audit work related to nine Chinese companies being investigated for potential accounting fraud?
Well, after a 10-month stand off, it looks like some progress is finally being made to avoid an accounting Armageddon that could have led to the wholesale delisting of Chinese companies on US stock exchanges. Continue reading »
There’s been no shortage of private equity interest in Latin America. Beyondbrics has written plenty about the trend (for example, here and here).
But what about those returns? How good of an investment has LatAm been for PE investors? It’s a tricky question given that both individual firms and industry associations are reluctant to give out returns data to the media. Continue reading »
By Pan Kwan Yuk and Samantha Pearson
UPDATE: It’s official. Petrobras has succeeded in raising $11bn on Monday, making it the biggest emerging markets issue EVER.
Final pricing came in slightly lower than initial guidance thanks to strong demand from investors. Yields for the six-tranche issue ranged from 2.14 per cent for the three-year notes, to 5.76 per cent for the 30-year bonds. The total size of the issue can still increase as underwriters has a so-called “greenshoe option” to sell 5 per cent more of the bonds to Asia investors. See original BB post after the jump. Continue reading »
The yen is at a four-year low against the dollar, having broken through the key Y100 level. But those hoping that a falling yen would spark a rush of Japanese money back into emerging markets assets may have to wait.
The move by the Bank of Japan to unleash an unprecedented wave of aggressive monetary easing should in theory boost appetite for EM assets. Lower domestic yields and higher inflation, the argument goes, would push Japanese investors into EM.
But five weeks on, not many Japanese yen appear to have arrived on the EM shores. Continue reading »
Xinyuan Real Estate is making bold moves into the US property market, backed by its ready access to China’s monied classes. But in its latest project, it is surprisingly keen to play down its Chinese roots. Continue reading »
It’s not quite a done deal yet. But it’s getting there.
Mexico’s Congress on Tuesday voted overwhelmingly in support of a sweeping reform bill that could break open the country’s telecommunications and broadcasting sectors and introduce more competition in the two tightly-held markets.
But while the Senate voted 108-3 to approve the bill (which has already been passed by the lower house), a number of constitutional changes included in the reform package still need to be approved by two-thirds of Mexico’s 31 state legislatures before it can become law. Continue reading »
Spain’s two leading lenders, Banco Santander and Banco Bilbao Vizcaya Argentaria, have long looked to Latin America for growth – and more recently to repair troubled balance sheets at home.
But while Santander has hitched its fortunes on Brazil — now its biggest market, accounting for 26 per cent of group profits last year — BBVA has focused on building up its operations in Mexico. Just last month it announced plans to funnel $3.5bn into its Mexico business over the next three years, and the country last year accounted for more than one-third of its global profits. Continue reading »
What does Rwanda, a poor African country that has suffered a horrific war and genocide, have in common with Costa Rica, a Central American country of 4.5m best known for its beaches and high-quality coffee beans?
Answer: Both are the latest to benefit from the wave of cheap money looking for returns, by issuing debt at ridiculously low rates. Continue reading »
It is often said that you can’t put a price on education.
Not so in Brazil, where private sector education has become big business. The move on Monday by Kroton Educacional to acquire rival Anhanguera Educacional Participações in a R$5bn ($2.48bn) all stock deal is the latest in a wave of buyouts to hit the sector in recent years. Continue reading »
Has Eike Batista’s “X” group of companies become too big to fail?
Judging by the amount of help that “Brazil Inc” has been throwing his way, one would be forgiven for thinking so. The latest to lend a helping hand? BNDES, Brazil’s development bank, which on Thursday approved a 10-year, R$935m ($464.6m) loan to Batista’s mining group, MMX Mineracao e Metalicos. Continue reading »
By Pan Kwan Yuk and Thalita Carrico
Brazil’s burgeoning middle class might have helped propel the country to the top of the consumer league tables.
But as Brazilians have gotten richer, they are also succumbing in ever greater numbers to so-called diseases of affluence – namely obesity, diabetes and cancer. It’s a development that has not gone unnoticed among the world’s top pharmaceutical companies. Continue reading »
To the growing list of ways for investors to play the emerging market growth story, add this: private debt funds.
Cordiant Capital, a Canada-based fund manager, is the latest to add to this small but growing sector with the launch of a $250m fund on Monday. Continue reading »
Whatever happened to the “great rotation“? Wasn’t 2013 supposed to be the year when investors finally took their cash out of bonds and put it to work in equities?
Judging by the record week emerging market bonds have had, EM equities bulls might have some waiting to do yet. Continue reading »
Pegasus Airlines, Turkey’s budget carrier, could raise as much as TL654.5m ($365.7m) when it launches its initial public offering on the Istanbul Stock Exchange later this quarter.
According to a preliminary offering circular seen by beyondbrics, Pegasus is looking to sell 32.1m shares, or nearly a third of the company, at a price range of TL17-TL20.40 ($9.50-$11.40) a share.
Should it succeed in hitting the top of its price range, it will be Turkey’s largest IPO in two and a half years. Continue reading »