Capital Markets
From The Report: Colombia 2013
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Colombia’s increasingly deep, diverse and sophisticated capital markets suggest a coming of age for the sector, which in 2012 saw total annual traded volume reach $36bn and a record total market capitalisation of $270bn. Well-established sovereign fixed-income and foreign exchange markets have been complemented in recent years by a developing derivatives market, increased domestic corporate debt issuance and a rising stock exchange, with strong domestic and international investor appetite across a range of asset classes. The Integrated Market of Latin America, which brings together the equity markets of Colombia, Chile and Peru, currently ranks second to Brazil on the continent in terms of market size, and offers new opportunities for the region.
This chapter includes interviews with Juan Pablo Córdoba, President, Bolsa de Valores de Colombia; and Alejandro Santo Domingo, Board Member, Valorem.
Articles from this Chapter
Solid ground: Pursuing regional integration and boosting equity are key focuses
OBG talks to Juan Pablo Córdoba Garcés, President, Bolsa de Valores de Colombia (BVC)OBGplus
Interview:Juan Pablo Córdoba Garcés How do BVC’s fees compare with other markets in the region, and what impact does this have? JUAN PABLO CÓRDOBA GARCES: Of the five principal markets in the region, two are more costly than Colombia. Transaction costs may be high, but settlement and clearance fees are low, levelling out for a reasonable overall cost. One must also bear in mind the size of the market. Amortising a million shares is entirely different from amortising 2000 shares. The…
A growing appetite: OBG talks to Alejandro Santo Domingo, Board Member, ValoremOBGplus
Interview:Alejandro Santo Domingo What is your perspective on the recently operational Integrated Latin American Market ( Mercado Integrado Latinoamericano, MILA)? ALEJANDRO SANTO DOMINGO: Although the MILA has created an operational stock exchange that uniquely integrates the markets of Colombia, Chile and Peru, the institutional investors moving significant amounts of capital, such as pension fund and insurance companies, still prefer the traditional methods. To see a fully operational…
Integrated solutions: The marriage of three markets offers new opportunities for the regionOBGplus
The culmination of a two-year process in May 2011 to integrate the stock markets of Colombia, Chile and Peru was aimed at increasing business between the three capital markets and offering investors a more diverse and liquid range of alternative investments. Greater liquidity was expected to bring in more investors and encourage additional companies to list, thus further boosting liquidity and trading volumes. By coming together, the three economies were aiming to deepen their capital markets…
Liquid dreams: Prudent macroeconomic policy set to improve access to financial toolsOBGplus
Fixed income in Colombia is a tale of two markets: a well-established and highly liquid sovereign bond market, accounting for about 80% of bonds traded, and a still-developing, less-liquid corporate bond market. Together, they amounted to $840bn of the total $1.12trn of financial assets traded in Colombia in 2012, indicating their relative strength in terms of liquidity compared to other asset classes. Total trading in bonds experienced compound annual growth of 22% from $140bn in 2001, peaking…
Grupo Nutresa: Consumer goodsOBGplus
THE COMPANY: Grupo Nutresa is the fourth-largest consumer company in Latin America by market capitalisation. The firm has a well diversified portfolio of products with more than 122 brands, 15 of which are leaders in Colombia and neighbouring countries. It also has six different business units: cold cuts, biscuits, chocolates, coffee, ice cream and pasta. Although the largest part of its revenues comes from its operations in Colombia (around 70%), Grupo Nutresa has successfully expanded internationally in the past few years, establishing a presence in 12 countries in the region, including manufacturing plants in eight of these (US, Mexico,…
Pacific Rubiales Energy Corp.: Oil & gasOBGplus
THE COMPANY: Pacific Rubiales Energy Corporation (PREC) is the largest independent exploration and production company in Colombia, and the second-largest oil and gas producer after Ecopetrol. With more than 12m net acres of exploration lands, it also holds the second-most important exploration portfolio in Colombia. Despite the fact that most of its production and exploration activities are currently concentrated in Colombia, PREC also has operations (mainly exploratory) in Peru, Brazil, Guatemala and Papua New Guinea. The company also has a significant presence in the midstream segment through equity and capacity participations in the main…
Ecopetrol: Oil & gasOBGplus
THE COMPANY: Ecopetrol is the Colombian national oil company. It is one of the major oil and gas integrated companies in the world and, as a corporate conglomerate of more than 25 enterprises, has operations in exploration, production, transport and refinery of hydrocarbons. It also has subsidiaries in the petrochemical and biofuels industries. Despite the fact that most of its activities are concentrated in Colombia, Ecopetrol also has operations in exploration and production of oil and gas in Brazil, Peru, and in the Gulf of Mexico (US). In terms of market share, Ecopetrol has 40% of the exploration lands in Colombia, 54% of the proven (1P)…
Cementos Argos: CementOBGplus
THE COMPANY: Cementos Argos is a cement and ready mix concrete producer company. The firm has operations in several Latin American markets and also has a presence in North America. In Colombia, the company is the industry leader with a 50% market share. It is the fifth-largest cement producer in Latin America with investments in Panama, Haiti, the Dominican Republic, St. Martin, St. Thomas, Antigua, Dominica, Surinam and Curacao. It is the second-largest producer of cement in the south-east US and the fourthlargest ready mix producer in the US. After the recent acquisition of Lafarge’s assets in the south-east US, Cementos Argos reached…
Grupo SURA: DiversifiedOBGplus
THE COMPANY: Grupo de Inversiones Suramericana (Group Sura) is a holding company listed on the Colombian bourse. It has an investment portfolio grouped into two main segments: the first, called Strategic Investments, integrates financial services, pensions, insurance and social security, as well as complementary services sectors. The second, called Portfolio Investments, comprises mainly the food, cement and energy sectors. Regarding the company’s assets, the holding has stakes in other publicly-traded companies which are also a part of the broad local market index. In the food sector Grupo Sura holds approximately 35.2% of Grupo Nutresa…
