Monthly Archives: June 2012

I have commented on private equity in Brazil and other emerging markets. Here are some interesting observations from Tom Kadala on commercial debt in Brazil as a way to attract foreign capital for companies as well as infrastructure projects.

Tom Kadala

Last year when Brazil’s second largest bank, ITAU Unibanco, sold 400 million reais (USD$200 million) of bundled corporate loans (technically referred to as CLO’s or Collateralized Loan Obligations) to foreign investors, the news media viewed the move as a signal that Brazil’s lending capacity was drying up.  Just like a business that sells its receivables to raise cash quickly, Brazilian banks were replenishing their lending capacity by selling their attractive loan portfolios at a discount to foreign investors. To date, sales of CLOs have been brisk exceeding 50 billion reais (USD$25 billion).  Should investors be concerned that Brazilian banks might be unloading their inventory of corporate loans to avoid a liquidity crisis?  If not, what is really going on? 

Brazil’s commercial and industrial backbone consists of over 14,000 mid-cap size companies that range in sales between USD$30 million and USD$200 million. These companies are mostly privately-held, which makes buying…

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Smaller projects soon eligible for Carbon Emission Credits

According to the Bloomberg story below, entrepreneurs will be able to access the carbon credit market for smaller projects.  Could be time to adjust those business plans.  Investors, this is an additional boost to the ROI!

http://www.bloomberg.com/news/2012-05-15/un-to-help-give-world-s-poor-fairer-share-of-carbon-credits-1-.html

 

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Game Changing Gas Finds off East African Coast

It’s  not the cleanest fuel but it’s the cleanest fossil fuel and each new discovery promises to bring the price down and offer a cleaner alternative to oil and coal.

Anadarko proposes $15bn in new investments to access newly discovered natural gas off the coast of Mozambique–whose entire GDP is on l $12bn!

If managed correctly the subsequent increase in foreign direct investment will be a huge boost for the economies of Kenya, Mozambique, Tanzania and other East African nations.

The US Geological Survey says East Africa’s coastal region has more natural gas than Saudi Arabia!

For the full story click below:

http://www.news24.com/Africa/News/Natural-gas-boosts-East-Africa-20120619

 

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