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Banco del Bajío prices IPO; lending growth slows in Peru


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Banco del Bajío prices IPO; lending growth slows in Peru

* Banco del Bajío SA said it priced its initial public offering at 29.50 Mexican pesos per share, at the lower end of a price range of between 29 pesos and 32 pesos per share the bank had set earlier, Reuters reported. Including overallotment, the total offer is worth approximately 8.79 billion pesos. Four market sources told the newswire that demand for the bank's shares is roughly four times oversubscribed.

* Loan placements by Peruvian banks grew 3.2% in the first quarter of 2017, down from the 9% growth seen in the year-ago period, amid an economic slowdown, the impact of severe flooding, and weak consumer spending, Semana Económica reported.


* Mexico's central bank said it plans to auction up to $200 million in foreign exchange hedges on June 8 that will expire in 32 days, Reuters reported.

* Panama-based Compañía Internacional de Seguros has acquired 76% of the shares of Costa Rican insurer Aseguradora del Istmo (ADISA) SA, El Financiero reported, citing a regulatory filing. The shares were previously held by Istmo Cia. de Reaseguros Inc., which has entered into a liquidation process.

* Costa Rica's central bank announced a series of measures aimed at averting sharp fluctuations in the exchange rate and helping the bank meet its inflation target, including the introduction of a daily foreign exchange auction before the local currency market opens, El Financiero reported.

* As of June 2016, Mexico had 11.5 access points for financial services per 10,000 adults, up from 9.6 access points in the same month of the previous year, El Economista reported, citing local banking and securities commission CNBV's latest financial inclusion report.

* Mexico saw a total of 118 M&A deals in the first five months of 2017, up 0.85% from the same period a year earlier, El Economista reported, citing data from Transactional Track Record. However, the disclosed value of M&A activity fell 13.55% year over year.


* Consumer delinquencies in Brazil fell 3.8% in May from the previous month and declined 3.4% compared to the year-ago period, according to data from credit research firm Boa Vista SCPC.

* Due to a disagreement over the admission of new evidence, Brazil's top electoral court decided to extend a trial into allegations of illegal financing in President Michel Temer's 2014 campaign to June 9 or even into the weekend, The Wall Street Journal reported.

* Proposed federal regulations for Brazilian covered bonds would enable the bonds' ratings to exceed those of their issuers, Fitch Ratings said. The proposed rules include liquidity provisions for covered bond payments post issuer default, set new standards on asset quality and define the roles and responsibilities of the trustee both before and after issuer insolvency. The proposed rules also require the cover pool to hold sufficient liquid assets to cover the cumulative net payment obligations expected over the next 180 days.

* Caixa Econômica Federal signed a cooperation agreement with Brazilian industry confederation CNI to boost access to credit for micro, small and medium-sized enterprises, Reuters reported.

* Brazilian President Michel Temer signed a provisional measure that increases the maximum amount of fines the central bank can levy for rule violations to 2 billion reais from 250,000 reais previously, Valor Econômico reported. The measure also allows the central bank to sign leniency deals with individuals and companies who admit wrongdoing.

* Banco Nacional de Desenvolvimento Econômico e Social wants to increase its annual disbursements of working capital loans for small and medium-sized enterprises to about 12 billion reais from 4 billion reais currently, Folha de S. Paulo reported.


* Banco de Crédito del Perú should reduce its growth projections and focus on cost-saving measures due to a weaker growth outlook in Peru amid infrastructure-related corruption investigations and the impact of devastating floods, Moody's said. Despite some improvement in the past years, the bank's efficiency metrics are still among some of the weakest in Peru's banking sector.

* Venezuela has been engaged in discussions with Russia over a $1 billion debt restructuring, Reuters reported, citing Russia's TASS news agency. Russia has reportedly lowered its projected revenue by almost $1 billion on concerns that Venezuela might not be able to make payments on bilateral loans in a timely manner.

* Colombia must work harder to lower its debt level, which, at close to 50%, is currently higher than the 40% median of other countries that have the same BBB rating from Fitch Ratings, Reuters reported, citing Richard Francis, the rating agency's director of sovereign debt. Fitch expects the country's economy to grow between 1.8% and 2% in 2017.

* Brazil's card payment industry grew 5.9% year over year in the first quarter to reach 285 billion reais, Diário Comércio Indústria & Serviços reported, citing credit card company association Abecs. Fernando Chacon, the association's president, said the sector's revenue is expected to increase around 7% in 2017 from the previous year, Reuters reported.

* The Inter-American Development Bank approved the second stage of a $450 million loan to Colombia to support the country's financial sector reforms, La República reported.

* Violent anti-government protests intensified in the Venezuelan capital of Caracas on June 7, with the death of a teenager bringing the total death toll to at least 66 since April, Reuters reported.


* Banco del Estado de Chile said it opened a new branch in the Chilean commune of Lago Ranco, noting that it currently has 396 branches throughout the country.

* Sebastian Galiani, secretary for economic policy at Argentina's Treasury, said the country's primary public spending will decline in the fourth quarter in real terms, Reuters reported. Spending will fall "not because anything special will be done in the fourth quarter but because spending was very high in the fourth quarter of last year," Galiani said.

* Argentine Finance Minister Luis Caputo said the country plans to issue a euro bond "probably at the end of June," in addition to the planned sale of a local currency bond next week, Reuters reported. He did not provide details on either of the planned offerings.

* Argentine banks have granted 7.60 billion Argentine pesos in UVA inflation-indexed loans since these loans were first introduced around a year ago, La Nacion reported, citing central bank data.


* The Organization for Economic Cooperation and Development said 76 countries either signed or agreed to sign a multilateral convention to implement a series of tax treaty measures aimed at reducing opportunities for tax avoidance by multinational corporations. The new agreement will replace more than 1,100 bilateral tax treaties across the globe, OECD Secretary-General Angel Gurría said in a statement.

* In its latest global economic outlook report, the Organization for Economic Cooperation and Development said it expects Mexico's economy to grow 1.9% in 2017 and 2% in 2018. Chile is expected to grow 1.6% in 2017 and 2.8% in 2018; Argentina 2.5% in 2017 and 3.1% in 2018; Brazil 0.7% in 2017 and 1.6% in 2018; Colombia 2.2% in 2017 and 3% in 2018; and Costa Rica 4.1% in both 2017 and 2018. The OECD expects the global economy to expand 3.5% this year and 3.6% next year.

* The growth outlook for sovereigns rated by Moody's remains subdued compared with the growth seen in the 10 years before the financial crisis, the rating agency said. Since the crisis, government debt metrics have deteriorated across both advanced and emerging market economies.


* Asia-Pacific: China investors to buy Kazakh bank stake; Reliance unit eyes stake sale via IPO

* Middle East & Africa: S&P cuts Qatar; South Africa may trim rates sooner; Sanlam warns on profit

* Europe: UK votes in snap election; Allianz eyes full Euler Hermes takeover

* North America: BCB Bancorp buying IA Bancorp; Comey to testify before Senate panel

Helen Popper contributed to this article.

The Daily Dose has an editorial deadline of 8 a.m. São Paulo time, and scans news sources published in English, Portuguese and Spanish. Some external links may require a subscription.