Latin Finance - May/June 2010 - 52

Caribbean dominican local markets

dollars are paying 7.75%-8.75% for a 2012 maturity, while in late 2008, they paid 9.00%. By transaction volume, dollar-denominated local issuance has not surpassed $30 million, according to the SIV. In pesos, the largest issue ever raised 4.6 billion pesos.

“Allowing AFPs to only invest in government bonds that are included in the budget doesn’t make much sense,” says Segura. “Authorities are advised to be diligent in authorizing the AFPs to invest in future debt issuances,” he adds.

AFPs have been buying local corporate bonds since 2004, according to a Sipen spokeswoman. In February, the Dominican 14 However, the process under Superintendent of Pension which AFPs are allowed to make Funds (Sipen) allowed 12 such investments could use some local pension funds, known tweaking. locally as AFPs, to invest up 10 The law states that AFPs to 15% of their portfolio in can only buy investment grade bonds issued by the finance 8 bonds, and they also need ministry. As of December authorization from a risk rating 2009, their portfolios were 6 commission before participating. 56.8% invested in local bank The commission is made up of paper, 37.8% in central 4 representatives of Sipen, SIV, bank debt and 5.3% in local the central bank, the banking corporate bonds, according 2 superintendent, the insurance to data from the local superintendence and the workers’ superintendent of pension association. The process can take funds and RBS. 0 2005 2006 2007 2008 2009 around 30 days, says a Sipen Soon after the new spokeswoman. regulation came into effect, Source: Superintendencia de Valores “It has already been established Dominican Republic-based that AFPs are allowed to invest pension fund AFP Siembra in local investment grade bonds, was evaluating investing Bonds Denominated In Dollars (m) so why does the risk rating between 5%-7% of its total Record year in 2009 commission need to authorize portfolio in local government an AFP to invest in investment bonds, says CEO Alvin 140 grade companies?” asks Torres Martínez. Its total portfolio of BHD Valores. He adds that is worth 16.6 billion pesos 120 the commission has sometimes ($450 million) up from 15.6 barred AFPs from investing in billion pesos in 2009. 100 local investment grade paper for “This is what we would no apparent reason. This includes initially invest, but as our 80 some local energy and road cashflow increases, we infrastructure company bonds, even will allocate more funds 60 though they were investment grade [to these bonds],” he tells and complied with all requirements LatinFinance. 40 for AFPs, adds Torres. But there is a catch. The “[AFPs have to] seek permission new rule says that AFPs may 20 issue by issue and I find this only invest in paper already abusive, considering that the rules detailed in the budget. 0 have already been laid out,” Torres This means that AFPs will 2005 2006 2007 2008 2009 says. The commission’s decisions only get to invest in fresh Source: Superintendencia de Valores affect pensions funds’ potential domestic issuance from this performance and may deter year’s 21 billion peso plan, investment, he adds. “AFPs should be able to decide where they but not from new programs. want to invest as long as they follow the rules,” says the banker. AFPs will also not be able to participate in the government’s Sipen did not return requests for comment on the matter. proposed $1 billion overseas bond issue because it will be placed Now that a new Sipen superintendent has been named, Torres outside of the Dominican Republic, and since it had not been hopes the commission’s performance will improve. In early March, authorized before the new law regarding AFP investments was Persia Alvarez stepped down as superintendent and Joaquín passed. The deal through Barclays and Citi is expected to have a Gerónimo was named to replace her. LF tenor longer than five years.

Bonds Denominated in Pesos (trn)
Volume slips versus 2007 and 2008

Cutting Red Tape

AFPs in the Picture

52 LatinFinance

May/June 2010



Latin Finance - May/June 2010

Table of Contents for the Digital Edition of Latin Finance - May/June 2010

Latin Finance - May/June 2010
Table of Contents
ECM Turmoil
Best Corporates
Mexichem Expansion
Alfa Funding Plans
Genomma Looks Overseas
Ecopetrol Equity
Brazil Private Equity
Colombian Investment in Peru
Peru Retail Investment
Corporate Governance
Caribbean Investor Report
Latin Finance - May/June 2010 - Latin Finance - May/June 2010
Latin Finance - May/June 2010 - Cover2
Latin Finance - May/June 2010 - Table of Contents
Latin Finance - May/June 2010 - 2
Latin Finance - May/June 2010 - 3
Latin Finance - May/June 2010 - 4
Latin Finance - May/June 2010 - 5
Latin Finance - May/June 2010 - 6
Latin Finance - May/June 2010 - 7
Latin Finance - May/June 2010 - 8
Latin Finance - May/June 2010 - 9
Latin Finance - May/June 2010 - 10
Latin Finance - May/June 2010 - 11
Latin Finance - May/June 2010 - ECM Turmoil
Latin Finance - May/June 2010 - 13
Latin Finance - May/June 2010 - 14
Latin Finance - May/June 2010 - 15
Latin Finance - May/June 2010 - 16
Latin Finance - May/June 2010 - 17
Latin Finance - May/June 2010 - Best Corporates
Latin Finance - May/June 2010 - 19
Latin Finance - May/June 2010 - 20
Latin Finance - May/June 2010 - 21
Latin Finance - May/June 2010 - Mexichem Expansion
Latin Finance - May/June 2010 - 23
Latin Finance - May/June 2010 - Alfa Funding Plans
Latin Finance - May/June 2010 - 25
Latin Finance - May/June 2010 - Genomma Looks Overseas
Latin Finance - May/June 2010 - Ecopetrol Equity
Latin Finance - May/June 2010 - 28
Latin Finance - May/June 2010 - 29
Latin Finance - May/June 2010 - 30
Latin Finance - May/June 2010 - 31
Latin Finance - May/June 2010 - 32
Latin Finance - May/June 2010 - 33
Latin Finance - May/June 2010 - 34
Latin Finance - May/June 2010 - 35
Latin Finance - May/June 2010 - Brazil Private Equity
Latin Finance - May/June 2010 - 37
Latin Finance - May/June 2010 - 38
Latin Finance - May/June 2010 - 39
Latin Finance - May/June 2010 - Colombian Investment in Peru
Latin Finance - May/June 2010 - 41
Latin Finance - May/June 2010 - 42
Latin Finance - May/June 2010 - Peru Retail Investment
Latin Finance - May/June 2010 - 44
Latin Finance - May/June 2010 - Corporate Governance
Latin Finance - May/June 2010 - 46
Latin Finance - May/June 2010 - 47
Latin Finance - May/June 2010 - Caribbean Investor Report
Latin Finance - May/June 2010 - 49
Latin Finance - May/June 2010 - 50
Latin Finance - May/June 2010 - 51
Latin Finance - May/June 2010 - 52
Latin Finance - May/June 2010 - 53
Latin Finance - May/June 2010 - 54
Latin Finance - May/June 2010 - 55
Latin Finance - May/June 2010 - 56
Latin Finance - May/June 2010 - Cover3
Latin Finance - May/June 2010 - Cover4
https://www.nxtbook.com/nxtbooks/latinfinance/0319QMR
https://www.nxtbook.com/nxtbooks/latinfinance/1218JYM
https://www.nxtbook.com/nxtbooks/latinfinance/paraguay_2018
https://www.nxtbook.com/nxtbooks/latinfinance/8320YTM
https://www.nxtbook.com/nxtbooks/latinfinance/8465TBM
https://www.nxtbook.com/nxtbooks/latinfinance/1476YBW
https://www.nxtbook.com/nxtbooks/latinfinance/7835THM
https://www.nxtbook.com/nxtbooks/latinfinance/8655TGL
https://www.nxtbook.com/nxtbooks/latinfinance/0614IJP
https://www.nxtbook.com/nxtbooks/latinfinance/ecuador_20170910
https://www.nxtbook.com/nxtbooks/latinfinance/2713KNP
https://www.nxtbook.com/nxtbooks/latinfinance/4982CFT
https://www.nxtbook.com/nxtbooks/latinfinance/7803HWE
https://www.nxtbook.com/nxtbooks/latinfinance/3829THA
https://www.nxtbook.com/nxtbooks/latinfinance/7891MDD
https://www.nxtbook.com/nxtbooks/latinfinance/7714JCR
https://www.nxtbook.com/nxtbooks/latinfinance/5619CMK
https://www.nxtbook.com/nxtbooks/latinfinance/6939ASL
https://www.nxtbook.com/nxtbooks/latinfinance/1364ASF
https://www.nxtbook.com/nxtbooks/latinfinance/0453DAS
https://www.nxtbook.com/nxtbooks/latinfinance/0453DAS_supp
https://www.nxtbook.com/nxtbooks/latinfinance/1304APV
https://www.nxtbook.com/nxtbooks/latinfinance/7234GSD
https://www.nxtbook.com/nxtbooks/latinfinance/1643XGS
https://www.nxtbook.com/nxtbooks/latinfinance/9511JKM_supp
https://www.nxtbook.com/nxtbooks/latinfinance/9511JKM
https://www.nxtbook.com/nxtbooks/latinfinance/8745TNV
https://www.nxtbook.com/nxtbooks/latinfinance/3629PBC
https://www.nxtbook.com/nxtbooks/latinfinance/7466TBC_HSBC
https://www.nxtbook.com/nxtbooks/latinfinance/7466TBC_supp
https://www.nxtbook.com/nxtbooks/latinfinance/7466TBC
https://www.nxtbook.com/nxtbooks/latinfinance/9463RVB
https://www.nxtbook.com/nxtbooks/latinfinance/7345GPY
https://www.nxtbook.com/nxtbooks/latinfinance/6398TVB
https://www.nxtbook.com/nxtbooks/latinfinance/4899EXM_supp
https://www.nxtbook.com/nxtbooks/latinfinance/4899EXM
https://www.nxtbook.com/nxtbooks/latinfinance/3885CWS
https://www.nxtbook.com/nxtbooks/latinfinance/45923GBC
https://www.nxtbook.com/nxtbooks/latinfinance/67449NBD
https://www.nxtbook.com/nxtbooks/latinfinance/46733NLP
https://www.nxtbook.com/nxtbooks/latinfinance/78456HCL
https://www.nxtbook.com/nxtbooks/latinfinance/89456RBM
https://www.nxtbook.com/nxtbooks/latinfinance/22278HBL
https://www.nxtbook.com/nxtbooks/latinfinance/2895YBM
https://www.nxtbook.com/nxtbooks/latinfinance/9033TBM
https://www.nxtbook.com/nxtbooks/latinfinance/8934TNP
https://www.nxtbook.com/nxtbooks/latinfinance/costarica20130304
https://www.nxtbook.com/nxtbooks/latinfinance/4672PNB
https://www.nxtbook.com/nxtbooks/latinfinance/9377BKL
https://www.nxtbook.com/nxtbooks/latinfinance/drmtest
https://www.nxtbook.com/nxtbooks/latinfinance/drmtest2
https://www.nxtbook.com/nxtbooks/latinfinance/5532LMC
https://www.nxtbook.com/nxtbooks/latinfinance/9044TBM
https://www.nxtbook.com/nxtbooks/latinfinance/4877RBC
https://www.nxtbook.com/nxtbooks/latinfinance/3008JHV
https://www.nxtbook.com/nxtbooks/latinfinance/3728YBC
https://www.nxtbook.com/nxtbooks/latinfinance/9337KLM
https://www.nxtbook.com/nxtbooks/latinfinance/5674GNJ
https://www.nxtbook.com/nxtbooks/latinfinance/8330KMC
https://www.nxtbook.com/nxtbooks/latinfinance/7663HCM
https://www.nxtbook.com/nxtbooks/latinfinance/2319ZMB
https://www.nxtbook.com/nxtbooks/latinfinance/7110MKL
https://www.nxtbook.com/nxtbooks/latinfinance/8599FHG
https://www.nxtbook.com/nxtbooks/latinfinance/4517HJK
https://www.nxtbook.com/nxtbooks/latinfinance/7813GHB
https://www.nxtbook.com/nxtbooks/latinfinance/1564FBM
https://www.nxtbook.com/nxtbooks/latinfinance/8884HGV
https://www.nxtbook.com/nxtbooks/latinfinance/7863SVB
https://www.nxtbook.com/nxtbooks/latinfinance/5233SFB
https://www.nxtbook.com/nxtbooks/latinfinance/5899SML
https://www.nxtbook.com/nxtbooks/latinfinance/4311PMN
https://www.nxtbook.com/nxtbooks/latinfinance/1366FBB
https://www.nxtbook.com/nxtbooks/latinfinance/9355AXC
https://www.nxtbook.com/nxtbooks/latinfinance/8559EBN
https://www.nxtbook.com/nxtbooks/latinfinance/8244QXC
https://www.nxtbook.com/nxtbooks/latinfinance/1779BBN
https://www.nxtbook.com/nxtbooks/latinfinance/7144XVB
https://www.nxtbook.com/nxtbooks/latinfinance/8971QGH
https://www.nxtbook.com/nxtbooks/latinfinance/200805
https://www.nxtbook.com/nxtbooks/latinfinance/200804
https://www.nxtbook.com/nxtbooks/latinfinance/200803
https://www.nxtbookmedia.com