Latin Day Ahead: Mexico Sells $2.4 Billion in Oil-Backed Debt

Mexico’s government raised 32 billion pesos ($2.4 billion) by selling oil-backed debt to local banks; Petroleo Brasileiro SA found another deposit of oil and natural gas in Brazil’s Santos Basin; Marfrig Alimentos SA agreed to buy Cargill Inc.’s Brazilian poultry and pork business for $706.2 million; Chile plans to limit immigration to Easter Island.

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Mexico Oil Bonds Raise $2.4 Billion to Bolster Public Finances

Mexico’s government raised 32 billion pesos ($2.4 billion) by selling oil-backed debt to local banks, part of an effort to alleviate budget shortfalls among states, Mexican Finance Minister Agustin Carstens said.

Petrobras Finds More Oil as Gabrielli Sees ‘Fantastic Moment’

Petroleo Brasileiro SA found another deposit of oil and natural gas in Brazil’s Santos Basin as Chief Executive Officer Jose Sergio Gabrielli sought to reassure international investors about the company’s prospects.

Marfrig to Pay $706 Million for Cargill’s Brazil Poultry Unit

Marfrig Alimentos SA, the world’s fourth-biggest meatpacker, agreed to buy Cargill Inc.’s Brazilian poultry and pork business for $706.2 million in cash a month after talks to merge with a rival failed.

Chile to Curb Easter Island Immigration as Services Break Down

Chile plans to limit immigration to Easter Island, heeding residents’ demands to stem a surge in population that has damaged the environment and is straining water, electricity and garbage services in one of the world’s most isolated communities.

MAIN COMPANIES:

Argentina

Ledesma SAAI (LEDE AF): The maker of grain and other food products said in a statement to the Buenos Aires stock exchange that it’s in negotiations to acquire Citrusalta SA, Argentina’s biggest grapefruit producer. Ledesma rose 2.2 percent to 4.25 pesos.

Telecom Argentina SA (TECO2) (TECO2 AF): Argentine President Cristina Fernandez de Kirchner said the government will change a proposed bill on media and broadcasting to eliminate a clause that would have allowed telephone companies to sell television services. Telecom, the country’s second-largest telephone company, slid 0.9 percent to 10.9 pesos.

Brazil

Cremer SA (CREM3) (CREM3 BS): The Brazilian maker of medical supplies plans to raise 100 million reais through the sale of three-year local bonds, Cremer said in a regulatory filing. Cremer rose 2 percent to 11.78 reais.

Rossi Residencial SA (RSID3) (RSID3 BS): The Brazilian homebuilder said yesterday in a preliminary prospectus it plans to sell 55 million shares in a public offering, the price of which will be set on Oct. 1. Rossi rose 1.5 percent to 12.43 reais.

Colombia

Ecopetrol SA (ECOPETL) : Colombian President Alvaro Uribe said the nation aims to increase oil output to 700,000 barrels per day by the end of the year and to boost production of natural gas. Uribe, in a speech in central Colombia, didn’t provide current oil output. Ecopetrol, the country’s state- controlled oil producer, declined 0.4 percent to 2,605 pesos.

Textiles Fabricato Tejicondor SA (FABRI CB): Ecuadorean Foreign Minister Fander Falconi said he will meet his Colombian counterpart, Jaime Bermudez, to discuss ways to re-establish diplomatic ties between the South American neighbors. Fabricato, which said its sales fell after Ecuador applied import restrictions, closed unchanged at 20.3 pesos.

LATIN AMERICAN MARKETS:

Brazil: Retail sales rose 6.2 percent in July from a year ago, according to the median forecast of 32 analysts surveyed by Bloomberg News. The national statistics agency is set to release its monthly report at 8 a.m. New York time.

The real gained 1.1 percent to 1.8103 per dollar.

The yield on the zero-coupon, real-denominated bond due in January 2010 fell one basis point to 8.70 percent, according to Bloomberg prices.

Peru: The South American country’s economy contracted 0.8 percent in July from the same month a year earlier, according to the median estimate of 12 economists in a Bloomberg survey. The national statistics agency is expected to release the monthly report at 11:30 a.m. New York time.

The sol was little changed at 2.9220 per dollar.

The yield on Peru’s 8.6 percent bond maturing August 2017 was unchanged at 4.92 percent, according to Citigroup Inc.’s unit in Lima.

Other prices in Latin American markets:

Argentina: The peso advanced 0.1 percent to 3.8513 per dollar.

The yield on the country’s inflation-linked peso bonds due in December 2033 dropped 1.22 percentage points to 12.03 percent, according to Citigroup Inc.’s local unit.

Chile: The peso gained 0.1 percent to 551.20 per dollar.

The yield for a basket of Chile’s 10-year peso bonds in inflation-linked currency units, called unidades de fomento, rose one basis point to 2.93 percent, according to Bloomberg composite prices.

Colombia: The peso weakened 0.1 percent to 1,996.81 per dollar.

The yield on Colombia’s benchmark 11 percent bonds due July 2020 rose nine basis points to 9.57 percent, according to Colombia’s stock exchange.

Mexico: The peso declined 0.2 percent to 13.3659 per dollar.

The yield on Mexico’s 10 percent bond due December 2024 rose eight basis points to 8.33 percent, according to Banco Santander SA.

ECONOMIES: Colombia will announce August vehicle sales; Brazil will publish July retail sales; Chile will release August copper export figures; Peru will announce unemployment and gross domestic product; Uruguay and Panama will publish second-quarter gross domestic product; Argentina will release September consumer confidence; Venezuela will publish lending figures.

To contact the reporter on this story: Laura Price in London at lprice3@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

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