Capital Markets
From The Report: Colombia 2016
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With a total market capitalization of $93.49bn in September 2015, the Bolsa de Valores de Colombia (BVC) is the fourth-largest stock exchange in Latin America, behind those of Brazil, Mexico and Chile but ahead of Peru’s. During the course of 2015 investor nervousness over emerging markets following the end of the commodities boom, coupled with rising US interest rates in December, prompted a flight to quality, especially US high-quality bonds and dollars, resulting in severe declines in share prices and reductions in liquidity and overall trading volumes across the region. The BVC was not immune to this. The Colcap, a Colombian capitalization index, fell 29% during 2015, closing at 1154, driven in large part by the sharp fall in oil prices since mid-2014. Even so, the prospect of a peace settlement in 2016, coupled with Colombia’s strong fundamentals point to a positive outlook for the sector.
This chapter includes an interview with Juan Pablo Córdoba Garcés, President, and Colombian Stock Exchange (BVC).
Articles from this Chapter
Making the most of it: Emerging markets are struggling, but Colombia has many bright spots
Making progress: OBG talks to Juan Pablo Córdoba Garcés, President, Colombian Stock Exchange (Bolsa de Valores de Colombia, BVC)OBGplus
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Getting together: Regional market integration is improving trading conditionsOBGplus
The Latin American Integrated Market (Mercado Integrado Latinoamericano, MILA) was first set up in 2011 by the stock exchanges of Chile, Colombia and Peru. The Mexican stock exchange, Bolsa de Valores de México (BVM), joined in late 2014. MILA’s aim is to generate more and better exposure for the stock markets of which it consists, and to provide a wider range of products and opportunities for investors. The four countries that comprise MILA are also members and co-founders of the Pacific Alliance…
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Promigas: Oil and GasOBGplus
Promigas is a Colombian company focused on the transport and distribution of natural gas, with 40 years of experience and operations in Colombia and Peru. During 2014, 50% of the natural gas sold in Colombia was transported through Promigas’ grid. Its extensive network of more than 2900 km of gas pipelines is one of the country’s main energy backbones. Throughout its history, Promigas has been the key player in the development and penetration of natural gas use in the country. Currently it is the main natural gas utility to 3m households in Colombia, a 38% market share, and to over 300,000 in Peru. In 2014 Promigas registered a net profit…
Promigas: Oil and GasOBGplus
Promigas is a Colombian company focused on the transport and distribution of natural gas, with 40 years of experience and operations in Colombia and Peru. During 2014, 50% of the natural gas sold in Colombia was transported through Promigas’ grid. Its extensive network of more than 2900 km of gas pipelines is one of the country’s main energy backbones. Throughout its history, Promigas has been the key player in the development and penetration of natural gas use in the country. Currently it is the main natural gas utility to 3m households in Colombia, a 38% market share, and to over 300,000 in Peru. In 2014 Promigas registered a net profit…
Ecopetrol: Oil and GasOBGplus
Ecopetrol is the largest corporation in Colombia, one of the 50-largest oil and gas companies in the world, and one of the four largest in Latin America. Its controlling shareholder is the Colombian government with an 88.5% stake. It plays a key role in the economy, since oil and gas represent more than half of the country’s exports, and its payments of dividends and taxes are critical to the nation’s fiscal accounts. Integrated Company The firm is vertically integrated, participating in all areas of the hydrocarbons chain, with a presence in Colombia, Peru, Brazil, Angola and the Gulf of Mexico. Ecopetrol has been upgrading and expanding…
Ecopetrol: Oil and GasOBGplus
Ecopetrol is the largest corporation in Colombia, one of the 50-largest oil and gas companies in the world, and one of the four largest in Latin America. Its controlling shareholder is the Colombian government with an 88.5% stake. It plays a key role in the economy, since oil and gas represent more than half of the country’s exports, and its payments of dividends and taxes are critical to the nation’s fiscal accounts. Integrated Company The firm is vertically integrated, participating in all areas of the hydrocarbons chain, with a presence in Colombia, Peru, Brazil, Angola and the Gulf of Mexico. Ecopetrol has been upgrading and expanding…
Grupo Éxito: RetailOBGplus
Grupo Éxito is a subsidiary of Groupe Casino, a long-standing French mass retailer with operations around the world. Through its subsidiaries, it is the largest retailer in Latin America as a whole and specifically in Colombia and Brazil. Groupe Casino holds a stake of about 54% in Grupo Éxito. Before its September 2015 acquisition of retail stores in Argentina and Brazil, the company had a network of 591 stores, with a leased area of 270,000 sq metres and 41,090 employees. Grupo Éxito’s market share adds up to 44% of the formal market in Colombia and Uruguay. Retail Focus Grupo Éxito’s corporate focus is retail sales through a multi-format…
Grupo Éxito: RetailOBGplus
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Grupo Aval: Financial ServicesOBGplus
Grupo Aval is the largest and most profitable financial group in Colombia and Central America. It operates through four banks in Colombia: Banco de Bogotá, Banco de Occidente, Banco Popular and Banco AV Villas; one bank in Central America, Banco de América Central (BAC) Credomatic; a pension fund manager, Porvenir, and a merchant bank, Corficolombiana, both in Colombia. Luis Carlos Sarmiento Angulo, founder of the group, holds 79.8% of the company’s total shares as of September, 2015, and the remainder floats. International Operator Grupo Aval operates in 12 countries, serving more than 13m banking customers and 11m pension and severance…
