Canadian Algonquin closes IPO for Essal and will own ca. 94% of the Chilean firm

Algonquin Power & Utilities Corp. announced the closing of its Initial Public Offering for the shares of Empresa de Servicios Sanitarios de Los Lagos S.A. (Essal). Algonquin already owned 53.5% of the southern sanitation company after directly acquiring the percentage of Aguas Andinas on October 13 for $92.3 million. After completing today's operation, Algonquin reached 93.96% ownership of Essal, bringing its total investment in Chile to $162.1 million.

Chile’s pension funds join global gold ETP rush

Chilean pension funds have been given the go-ahead by the country’s financial regulator to invest in gold exchange traded products for the first time. The relaxation is part of a brace of reforms in Latin America, alongside Brazil’s decision to allow cross listings of overseas exchange traded funds in the form of depositary receipts, that could help breathe new life into the region’s stuttering ETF industry.

Enel started construction of $164mn solar park in Chile

Energy company Enel Chile, through its renewable energy subsidiary Enel Green Power Chile, has started construction on a new 204MW photovoltaic park. The $164 million solar plant, which is due to be completed by July 2021, will produce around 589GWh of energy, avoiding the emission of 439,000 tonnes of carbon dioxide into the atmosphere.

Exports to Latin America increased annually by 25%

Chilean exports to Latin America increased 25% in September compared to the same period last year. With a total of $915 million, it is the month with the highest value exported to the region. Exports to Brazil increased by 38%, reaching $310 millions, while sales to Peru reached $257 millions, an annual growth of 67%. Exports to Bolivia registered an annual increased of 94%, reaching $42 million. Exports to Argentina reached $59 million, an annual increase of 22%.

Bankruptcies increase 56% in September

According to the Superintendence of Insolvency and Restructuring, the companies that requested to start their liquidation process in September reached 178, an annual increase of 56.1%. Compared to August the increase was 14.8%, and is the largest jump so far this year.

World Bank worsens to -6.3% contraction of Chilean GDP in 2020

The World Bank has worsened its projections for the Chilean economy and forecasts a 6.3% drop in activity by 2020. The figure represents a significant increase from the 4.2% drop projected last June. For next year, the international organisation foresees a rise in the country's GDP of 4.2%, improving on the 3.1% forecast four months ago. While for 2022, it estimates a growth of 3.1%.