Capital Markets
From The Report: Peru 2012
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Strong economic growth in recent years has enabled Peru’s capital markets to remain relatively unscathed by the global economic crisis that devastated many exchanges around the globe. While the Lima Stock Exchange (Bolsa de Valores de Lima, BVL), with market capitalisation of around $135bn, is one of the region’s smaller exchanges, it is likely to attract interest based on its recent successes. Indeed, in March 2012 it was reported that the exchange had grown 19.1% year-on-year. The BVL still must concentrate on building a broader and deeper marketplace with more regularly traded companies. The focus for the exchange now is on attracting more institutional and retail investors to build a more solid foundation for domestic capital markets.

This section features interviews with Walter Bayly, CEO, Banco de Crédito del Perú; and Francis Stenning, President, Lima Stock Exchange.

Articles from this Chapter

Analysis

Ambitious agenda: Several agencies are reaching out to attract further investment
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As of December 2011, foreign direct investment (FDI) in Peru was up 2.54% over the year prior. While Spain topped the charts as a lead investor in 2011 and mining activities were the primary recipient of FDI, going forward leaders from both the public and private sectors hope to attract a growing number of international investors to participate in Peruvian stocks and bonds, and several organisations have been established to promote the country’s capital markets abroad. One organisation working…

Interview

OBG talks to Francis Stenning, President, Lima Stock Exchange
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Interview: Francis Stenning How do you expect the introduction of the Integrated Latin American Market (MILA) to affect the Lima Stock Exchange (BVL)? FRANCIS STENNING: Operationally, there have been no major changes. One of our objectives when we created this model was to make the least possible changes to the infrastructure of our respective markets. We worked mostly at the regulatory level, standardising some of the market practices, most commonly associated with international standards. The…

Analysis

A regional platform: Three countries come together to create the Integrated Latin American Market
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Regional integration is a theme of growing importance for Peru and its Pacific coast neighbours. As Brazil seeks to solidify its position as the South American superpower, the continent’s smaller economies have found that the best way to compete is by working together. This is particularly true in the case of Chile, Colombia and Peru. In May 2011 these three nations took an important step towards promoting regional financial integration with the creation of the Integrated Latin American Market…

Analysis

Unlocking change: Striving for a deeper and more diverse market
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The Lima Stock Exchange (Bolsa de Valores de Lima, BVL) has traditionally been known as a small regional player specialising primarily in mining stocks. While the mining sector remains the most active on the BVL in terms of trade volume, the exchange is likely to see several non-mining initial public offerings (IPOs) in 2012 as a result of serious efforts to diversify and deepen stock offerings. EDUCATING FIRMS: The BVL itself is working in partnership with the Inter-American Development Bank…

Analysis

Compañía de Minas Buenaventura: Mining
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THE COMPANY: Buenaventura is South America’s largest producer of precious metals with almost 60 years of experience. Its majority shareholder is the Peruvian Benavides family, which owns 25% of the company. Some 75% of Buenaventura’s revenues are derived from the production of gold and silver. In 2011 Buenaventura’s production totalled 1.04m troy ounces of gold (of which 476,000 troy ounces came from its direct operations) and 16.24m troy ounces of silver. Buenaventura is listed on the Lima Stock Exchange (BVL), and it accounts for more than 7% of the exchange’s total market capitalisation. In 1996 Buenaventura became the first…

Analysis

Edegel Power: Utilities
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THE COMPANY: Edegel is the largest power-generation company in Peru. The company supplies the national grid and has a total installed capacity of 1470 MW, of which 548 MW is hydroelectric capacity and 922 MW is thermoelectric capacity. Edegel is controlled by the Spanish electricity company Endesa, which indirectly owns 83.6% of the shares through Generandes Peru and Endesa Chile. The company produced 8144.3 GWh in 2011, which represents 23.1% of the country’s national energy production and translated into an increase of 7.5% for Edegel from the previous year. During the same period, 43.3% of the company’s total production was generated…