Colombia Peso Leads Global Gains Amid Isagen Auction Prospectsby
Sale would raise at least $2 billion at new minimum price
Currency also follows rally in oil, the nation's chief export
The Colombian peso led gains in global currencies on speculation that the auction of state-controlled power company Isagen SA will bring dollars to the South American country.
The peso climbed 3 percent to 3,213.70 per dollar on Wednesday, its biggest jump since Nov. 3. The government raised the minimum price for the sale of its stake in Isagen by 22 percent to 4,130 pesos per share in an auction set for Jan. 13. The peso also joined a rally in crude oil, which accounts for about 40 percent of Colombia’s exports.
“That’s lifted the market’s spirit,” Mario Castro, a strategist at Nomura Holdings Inc., said from New York.
The government is seeking to fund highway projects with the sale of its stake in Isagen, which would raise at least 6.5 trillion pesos ($2 billion) at the new minimum offer price.