The regional economic advisor of the Andean Group Countries Department of the Inter-American Development Bank (IDB), Osmel Manzano, said this Thursday that the IDB projects that Colombia's GDP will fall 6.8% in 2020, higher than its initial estimate of -5%. The IDB projection came after the Colombian Ministry of Finance also worsened its estimate for 2020 from -5.5% to a range between -7% and -8%. Recently, statistics office Dane reported that Colombia's GDP between July and September fell 9%.
Union for Infrastructure (UPI), an alliance between Sura and Credicorp, plans to capture up to $ 550mn from institutional investors (pension funds, insurance companies and university funds) that have a long-term appetite, as well as multilaterals. Investments in the fund will be tied to inflation and their objective is to deliver a return -before commissions- of CPI + 7.50% -8.50%, explained UPI chief Mario Dib. The first fund by UPI was launched five years ago to capture $ 387mn, with key investors being private pension fund managers and insurers.
Colombian Businesses association ANDI released the results of the Joint Industrial Opinion Survey, which highlights that industry production decreased -10.1% between January and September, compared to the same period in 2019. According to the report, in addition to the drop in production, sales fell -9.9%. At the sectoral level, all manufacturing activities continue to register negative rates in production and sales.
The Ministry of Finance of Colombia announced that the auction program for Treasury Securities (TES) 2020 ended “satisfactorily” with the bid for $269.5 million in maturities for 2027, 2034 and 2050. This auction received offers for $ 525 million, 2.96 times the amount initially called. "Solid demand enabled the activation of 50% over-allotment clauses, $89.8 million additional to the initially auctioned amount of $179.7 million," said the Government.
Colombia's oil production fell 14.8% YoY in October to 751,374 barrels per day (bpd), the Ministry of Mines and Energy reported Thursday. In October of last year, production was 882,677 bpd. Compared to last September, there was an increase of 0.28%. Average crude oil production between January and October reached 785,526 barrels per day, a drop of 11.4% compared to the same period in 2019, when it stood at 886,777 bpd. Meanwhile, natural gas production in October fell 1.8% to 1,091 million cubic feet average day (mpcpd), compared to 1,112 mpcpd in the 10th month of 2019.
Khiron Life Sciences – a Toronto-based company with its main operations in Colombia – closed a bought deal for $11.1 million. Pharmacielo, also headquartered in Toronto and operating primarily in Colombia, closed a private placement for proceeds of $7.6 million earlier this week. Both companies said they plan to use the added capital for general corporate purposes. Cannabis Eeports from Colombia totaled $4.1 million as of August.