Tag Archives: Company Credit and Debt

Direcional Brazilian homebuilder cancels Riva 9 IPO | Instant News

SAO PAULO, July 28 (Reuters) – Brazilian homebuilder Direcional Engenharia SA has canceled an initial public offering by a subsidiary of Riva 9, according to a security filing on Tuesday.

Direcional cited adverse market conditions as a reason to cancel the IPO, which will be priced on Tuesday in a bid estimated to total around 900 million reais ($ 174 million).

$ 1 = 5,1651 reais Reporting by Carolina Mandl Editing by Chris Reese


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Brazilian judge approved Odebrecht’s bankruptcy restructuring plan | Instant News

SAO PAULO, July 27 (Reuters) – A Brazilian judge on Monday approved a bankruptcy restructuring plan for Odebrecht, a hit construction conglomerate that was the main equipment of a widespread corruption investigation known as “Car Wash Operation.”

The judge, in a decision seen by Reuters, approved the plan and rejected objections from creditors, including the state bank of BNDES, Itaú Unibanco, Banco Bradesco, Santander Brasil and Banco do Brasil.

Creditors in April approved a restructuring plan for most of the subsidiaries that formed Odebrecht. (Reporting by Aluisio Alves; Editing by Leslie Adler)


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BPER aims to play a role in the consolidation of Italian banking: the CEO told the paper | Instant News

ROMA (Reuters) – BPER Bank (EMII.MI) said on Thursday it would play an active role in the consolidation of Italian banking after completing the acquisition of UBI Banca (UBI.MI) branch, whose sales are part of Intesa Sanpaolo’s (ISP.MI) offer for UBI.

FILE PHOTOS: The Bper bank logo is depicted in downtown Milan, Italy, November 7, 2016. REUTERS / Stefano Rellandini / File Photo

Intesa Sanpaolo announced a $ 4 billion paper exchange offer for UBI in February. To win antitrust approval, Intesa agreed to sell 532 branches to BPER. The agreement has not received support from enough UBI shareholders to go through.

“In the next few months we will be busy in an agreement for 532 UBI branches which, in terms of size, are like buying a bank,” BPER Chief Executive Alessandro Vandelli told the financial daily Il Sole 24 Ore.

“Then we believe that we can play an active role in (banking) consolidation,” he said.

UBI has rejected the offer and agreement, which will create the eurozone’s seventh largest banking group. The agreement also received resistance from several local UBI investors.

“For us this is a unique opportunity and may not be repeated to grow,” said Vandelli, said the operation depended on the results of the tender offer, which lasted until July 28 and required acceptance of 50% of UBI’s capital plus one share to be valid. .

On Wednesday, take-up stands at 17.2% of UBI’s capital.

Vandelli met with the CEO of UBI, Victor Massiah at the end of 2019 to discuss the possibility of bonding, “but in December UBI decided to move forward with an independent strategy,” said the BPER boss.

Vandelli said the bank plans to launch a capital increase to fund the move in the second half of September. Sources said it would raise 600 million to 700 million euros through the issuance of shares. Buying a branch is expected to take several months, he added.

Vandelli said there were no plans to make the branch staff redundant, adding: “We aim to increase not to cut resources.”

Reporting by Gianluca Semeraro, written by Giulia Segreti


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UPDATE 2-Italy yields rise from lows after a European Union recovery agreement | Instant News

(Correcting days in the first paragraph to Tuesday)

* Eurozone periphery government bond yields: tmsnrt.rs/2ii2Bqr

By Elizabeth Howcroft

LONDON, July 21 (Reuters) – Eurozone bonds were sold on Tuesday, with Italian yields rising again after reaching the lowest level since early March in early London trade after European Union leaders agreed on a massive coronavirus recovery fund to support the bloc.

The European Union approved 750 billion euros ($ 860 billion) in the early hours of Tuesday after a long summit that lasted nearly five days. The agreement was welcomed by the market as a significant step in shoring up the eurozone economy against the shock of COVID-19.

In a compromise agreement, the package will consist of 390 billion euros in grants – less than the previously targeted 500 billion euros – and 360 billion euros in cheap loans.

The economy that is driven by Italian tourism is among the most severely affected by this virus. Prime Minister Giuseppe Conte said that 28%, or 209 billion euros, would be for Italy, giving the country the opportunity to “start over with force”.

Yields on Italian 10-year government bonds, which have dropped 70 basis points in anticipation of funds since it was first proposed on May 18, fell further on Tuesday morning. It reached 1.117% – the lowest since the first week of March – before recovering to 1.172% at 1457 GMT.

It was set to end the day for the first time after seven consecutive falls.

The spread between core and peripheral yields was tightened, with 10-year German-Italian yields approaching the narrowest in four months before widening again to around 162 basis points. .

“With protracted negotiations being avoided, we see the way cleared for the 10Y Italy-Germany deployment through our 150bp target this summer,” ING strategists wrote in a note to clients.

“The benefits of bringing in peripheral debt, and lower prospective volatility thanks to ECB intervention, make it a superior alternative to core bonds, in our view.”

The spread of Portuguese and Greek in Germany is also getting tougher.

German, French and Dutch results edged up around 1 basis point but were largely unchanged by the news. The German 10-year yield is at -0.454%, after moving in a narrow range of 12 bps so far this month.

“It is possible that the extraordinary non-compliance of the Bunds in the face of peripheral rally reflects the fact that the division of responsibilities promised by the IMF is even more tokenistic than it appears,” wrote Rabobank-level strategists.

The market takes confidence not only from the size of the fund itself but also from demonstrations of solidarity and debt sharing between EU countries.

But European Central Bank Vice President Luis de Guindos said on Tuesday that a new wave of the coronavirus crisis in areas such as the United States, Latin America and parts of Asia could reduce European growth.

ECB board member Isabel Schnabel was quoted on Tuesday as saying that investors should not read too much about decreasing ECB bond purchases, because they could increase later. He said that the ECB would likely use the entire bond purchase quota. ($ 1 = 0.8707 euros)

Reporting by Elizabeth Howcroft; Editing by Alison Williams


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Bank ‘Brics’ lent Brazil $ 1 billion to soften the economic blow of COVID-19 | Instant News

RIO DE JANEIRO, July 20 (Reuters) – The New Development Bank of the “BRICS” group of developing countries will lend Brazil $ 1 billion to help fight economic damage caused by the COVID-19 crisis, the agency said on Monday.

The funds will be allocated to the federal government’s emergency assistance payment program, which according to the NDB estimate could benefit 5 million informal workers, low-income families and unemployed people.

“NDB funding is an important tool for the Brazilian government to ensure a strong fiscal response to combat the pandemic and allow priority investments to be made, thereby supporting economic recovery,” the NDB said in a statement.

According to the bank, which was founded by Brazil, Russia, India, China, and South Africa, this will be above funding from other multilateral banks and international development agencies such as the World Bank and Inter-American Development Bank, bringing the total loan to Brazil to $ 4 billion. (Reporting by Rodrigo Viga Gaierd; editing by Jonathan Oatis Writing by Jamie McGeever)


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