Bloomberg Línea — Mexico’s state utility CFE plans to sell green bonds in foreign debt markets for the first time amid mounting criticism that it is doing little to protect the environment. The state-owned company is looking to tap the U.S. investment-grade market with a two-part sustainability benchmark bond.
In Peru, President Pedro Castillo on Tuesday swore in his fourth cabinet since taking office last July. The new lineup was announced one week after he reshuffled his inner circle following the resignation of cabinet chief Héctor Valer Pinto, who stepped down following allegations of domestic violence. Anibal Torres, who until Tuesday was the Minister of Justice and Human Rights, took over as cabinet leader, known in Peru as president of the Council of Ministers.
On the stock markets, Peru had by far the best performance among Latin American stock exchanges and the S&P/BVL Peru (SPBLPGPT) rose 4.54%, its best day since September 2021. The good stock market performance came in the wake of the announcement by Compañía de Minas Buenaventura (BUENAVC1) that it will sell its entire stake in the Yanacocha and La Zanja gold mines.
Argentina’s Merval (MERVAL) index saw the sharpest losses in the region, down 1.17%, amid uncertainty generated by the agreement in principle with the International Monetary Fund, while Brazil’s Ibovespa (IBOV) rose by 0.21%.
Following is a roundup of Tuesday’s news from Bloomberg Línea and Bloomberg reporters across Latin America.
Argentina
- The tightening of foreign exchange restrictions led the Argentine Industrial Union, the country’s main business chamber, to send a letter to the head of the Federal Administration of Public Revenues (AFIP), bemoaning the fact that many companies have seen their import operations blocked. Argentina charges a tax 2,000% higher than Venezuela, because while Caracas is starting to charge 3% for foreign currency purchases, Argentina exceeds the measure with taxes that have already been applied for two years.
- The government decreed an agricultural emergency in the province of Corrientes, where 335,043 hectares have been burned by forest fires.
Brazil
- Smart Fit (SMFT3), Brazil’s largest fitness center network, had its best month of recovery for its customer base in January since the beginning of the recovery in June 2021.
- President Jair Bolsonaro said Tuesday that the rise in fuel prices is a result of Workers’ Party (PT) governments. Bolsonaro also used his speech to once again criticize self-isolation as a measure to curb the spread of the Covid-19 pandemic recommended by the World Health Organization.
Chile
- Consumer prices in Chile rose last month more than twice as much as analysts expected. The consumer price index rose 1.2% in January, which compares with an average estimate of 0.5% from analysts surveyed by Bloomberg.
- Silicon Valley-based medtech startup Levita Magnetics is preparing to launch an artificial intelligence and robotics center in Chile’s capital Santiago.
Colombia
- Colombia has purchased 10.8 million doses of the Moderna Covid-19 vaccine, and the pharmaceutical company expects to deliver one million doses in the first quarter of 2022.
- Canacol Energy has put the Toronja 2 well in Córdoba into permanent production and reported that natural gas production and sales totaled approximately 170 million cubic feet per day in January.
- Colombia will likely see the arrival of air taxis, after Brazilian group Flapper and Jaunt Air Mobility signed an agreement to acquire a fleet of aircraft for Latin America.
Ecuador
- OCP Ecuador has completed repair works on its pipeline and resumed operations after three days of pumping having been suspended, and 11 days after a rupture occurred in the pipeline in the Piedra Fina area.
Mexico
- State utility CFE plans to sell green bonds in foreign debt markets for the first time amid mounting criticism that it is doing little to protect the environment. The state-owned company is looking to tap the U.S. investment-grade market with a two-part sustainability benchmark bond.
- Mexico’s tax authorities (SAT) have reduced fines for tax violations imposed on four companies belonging to Grupo Salinas, owned by Mexican billionaire Ricardo Salinas Pliego. The fines, levied against TV Azteca and Banco Azteca, will be reduced by 52 million pesos ($2.52 million).
- Grupo Famsa’s bondholders have approved the company’s restructuring, which it hopes will enable it to boost its business operations.
Peru
- President Pedro Castillo on Tuesday swore in his fourth cabinet since taking office seven months ago. The new lineup was announced one week after he reshuffled his inner circle after cabinet head Héctor Valer Pinto submitted his letter of resignation following allegations of domestic violence. Anibal Torres, who until Tuesday was the Minister of Justice and Human Rights, took over as cabinet leader, known in Peru as president of the Council of Ministers.
- The oil spill that occurred on January 15 off the coast of Peru continues to have an impact not only on the environment, but also on some economic sectors. As a result of the ecological disaster, the Peruvian government took precautionary measures and paused operations at La Pampilla refinery. Spanish company Repsol, which is blamed for the oil spill, is the owner of La Pampilla, and supplies more than 40% of the Peruvian fuel market.
This is how the region’s markets closed on Tuesday, February 8:
