Global X ETFs, a New York-based provider of exchange-traded funds (ETFs), has launched Colombian Public Debt Stock ETF (GXTESCOL), the Andean country’s first fixed income ETF.

The new ETF, according to the US company that will serve as manager of the fund, will be dominated in Colombian pesos and function as an issue-driven exchange traded fund (ID ETF), a World Bank intended to “support the development of domestic capital markets in emerging economies by collaborating with local partners and allowing local currency debt to be packaged into an ETF format.”

Fiducaria Bogota will serve as administrator of the fund and J.P. Morgan will provide the fund’s reference index. Both of these decisions were announced by the Colombian Ministry of Finance.

Furthermore, Global X ETFs says that GXTESCOL “seeks to offer greater accessibility to the Colombian sovereign bond market in local currency to investors while tracking the total return” of the JP Morgan GBI-EM Colombia Government Local Currency Bond Index.

“The launch of the Colombian Public Debt Stock ETF (GXTESCOL) is part of the World Bank’s strategy to create a regional ID ETF in Latin America and then a global one for emerging countries,” said Mark Roland Thomas, Colombia country director at the World Bank, in a statement.

“We are sure that it will contribute to boosting the already developed local currency bond market and will serve as an example and inspiration for the adoption of this instrument by other countries. Supporting the development of the global capital markets is part of our mandate to end extreme poverty and boost prosperity on a livable planet.”

For it’s part, Federico Torresi, head of Latin American sales at Global X ETFs, added that “we are confident that GXTESCOL will help develop Colombia’s capital markets while democratizing its sovereign debt through increased accessibility.”

After more than five years of planning, Emirates announced that it has received the final authorizations required to begin operating its daily flight between Bogotá and Dubai in the United Arab Emirates (UAE).

The flight, which will have a stopover in Miami en route to the Colombian capital, is set to have its inaugural takeoff in early June, according to the UAE-based airline. It will be operated by a Boeing 777-300ER aircraft that seats up to 354 passengers and can haul 20 tons of cargo on each flight.

The final red tape hurdles to launch the route included formalities including approvals by Colombian aviation regulator AeroCivil.

“Emirates is excited to launch our daily service to Bogota and connect Colombia to the Middle East and beyond,” said Salem Obaidalla, senior vice president of  commercial operations of the Americas for Emirates, speaking at the Routes Americas 2024 event in Bogotá.

The airline says it has working toward this day since 2018, when it began to participate in local industry events and pave the way for its eventual authorization with a range of aviation and business sector stakeholders in the nation.

“The addition of Bogotá to our growing global network of more than 130 destinations,” added Obaidalla, “allows us to strengthen our coverage in the Americas, reaching 19 points, and reinforces our ability to deliver better connectivity and expand options for travelers while providing our signature premium services.”

(Photo credit: Emirates)

Miami-based window and glass manufacturer Tecnoglass, Inc. (NYSE: TGLS) brought in a record $833.3 million USD in revenues in 2023, a 16% increase compared to 2022, in a watershed year that saw the Colombian-born firm relocate its headquarters to Miami.

Overall, it reported net income of $183.5 million USD and a record full-year gross profit of $390.9 million USD, which supported the board’s decision to approves a 22% increase in quarterly dividend to $0.11 USD per share.

For the fourth quarter, revenues were down year-over-year, falling 7.8% to $194.6 million USD compared to $211.1 million USD in the prior-year fourth quarter. Gross profit fell as well, coming in at $83.0 million USD, for a 42.6% gross margin, in the final three months of 2023, a drop from the $110.2 million USD and 52.2% gross margin over the same period in 2022.

Despite the relatively down news for the quarter, the company executives remain focused on the record-setting full-year results and see positive signs for a similarly promising 2024.

“We are confident that 2024 will be another year of double-digit revenue growth,” said Santiago Giraldo, chief financial Officer of Tecnoglass, in the firm’s results announcement.

He noted the uncertainty ahead, given the macroeconomic conditions and current rate environment in the United States, but said the company remains “confident in our ability to outperform our end markets” and expects more share gains, “solid growth,” and cash flow generation in the year to come.

“While our year-over-year margins were impacted by the sharp appreciation of the Colombian peso during the second half of 2023, we delivered industry-leading adjusted EBITDA margins in excess of 35% for the year,” said José Manuel Daes, chief executive officer of Tecnoglass, in the firm’s results announcement.

“Our strong margin performance is attributable to our previously implemented high return automation and capacity enhancements as well as our disciplined cost control efforts,” he added. “Additionally, the structural enhancements in our business, along with our prudent working capital management, helped us generate another year of exceptional cash flow. Our solid capital position has given us flexibility to invest in further structural enhancements, increase our cash dividend, return value to our shareholders through share repurchases, and improve our leverage profile with net debt to adjusted EBITDA ending the year at a record low of 0.1x.”

Photo credit: Tecnoglass

Colombia is reimposing tariffs on the import of dozens of raw materials and capital goods to protect the industries and companies that already produce them domestically.

The tariff, which will take effect in early April, will vary by product, according to the government, and levied at a rate of 5%, 10%, or 15% depending on the good “given that they are currently produced domestically,” stated the Ministry of Commerce, Industry and Tourism (MinCIT).

The following goods and materials are among those affected: certain fertilizers, herbicides, appliances, agricultural tools, hammers, axes, parts for semi-trailers, paper bags, and various textiles and yarns.

The decision follows a formal review from MinCIT into tariffs previously imposed and officially comes in the form of Decree 0324 of March 11, 2024.

The tariffs will not apply to goods that are shipped and arrive in Colombia prior to the formal date when it comes into force, per MinCIT.

Despite the move, Colombia is coming off a year in which it evened out a trade imbalance with a 15.2% drop in overall imports in 2023.

Photo: The Port of Barranquilla. (Photo credit: Puerto de Barranquilla)

Canadian mining company Libero Copper & Gold Corporation (TSXV: LBC) recently announced that it has closed on financing of $2.86 million CAD in a strategic investment involving Frank Giustra, a Canadian businessman with long-term experience in the industry.

The funds will be used for working capital and general corporate purposes, according to Libero Copper, which noted that “certain insiders of the company participated in the Private Placement and acquired an aggregate of 1,240,000 units.”

Characterized as a non-brokered private placement, the Vancouver-based miner issued a total of 11,000,000 units at a price of $0.26 CAD per unit, which consist of one common share and a warrant (with an exercise price of $0.50 CAD until March 11, 2027).

“We are thrilled to welcome Mr. Frank Giustra as a strategic investor in Libero Copper,” aid Ian Harris, president & CEO of Libero Copper, in the announcement.

“Mr. Giustra’s esteemed reputation and successful track record as a mining entrepreneur precede him. His profound understanding of industry dynamics and the imperative of meeting the growing demand for copper in the transition to a clean energy future attest to the immense potential of our company. His support will be invaluable in unlocking the full potential of the Mocoa copper-molybdenum porphyry deposit.”

In Colombia, the company is currently exploring the Mocoa copper-molybdenum porphyry deposit in the department of Putumayo, Colombia.

“Mocoa is being advanced by a highly disciplined and seasoned professional team with successful track records of discovery, resource development, and permitting in Colombia,” according to Libero Copper.

(Photo credit: Libero Copper & Gold)

This article, written by Anastasia Austin and Henry Shuldiner, was originally published by InSight Crime, a Medellín-based foundation dedicated to the investigation and analysis of crime and security in Colombia and Latin America.

Ecuador declared war on 22 domestic drug trafficking gangs in January, proclaiming them terrorist organizations and arresting over 11,000 suspects.  But some of the most serious blows to date have been against transnational networks.

In February, a joint Spanish-Ecuadorian operation brought down an Albanian-led drug trafficking network, about two weeks after Ecuadorian police arrested a major Colombian guerrilla leader operating in the province of Imbabura.

Sandwiched between the world’s top cocaine producers, Colombia and Peru, Ecuador has become a hub and base for several transnational criminal networks. Its long coastline and large container ports make it a perfect launch pad for drug shipments heading to the United States and Europe. Colombian, Mexican, and Balkan drug trafficking organizations (DTOs) all have an established presence in the country.

These international DTOs send brokers and emissaries to subcontract and coordinate cocaine shipments, but there is little evidence that they directly interfere with Ecuadorian domestic gang dynamics or conflicts.

Their greatest impact is financial. By paying Ecuadorian transport groups, dispatch networks, chain gangs, hitmen, and corrupt officials, foreign groups have spurred the development of sophisticated and powerful homegrown networks in Ecuador and helped weaken institutions.

Below, InSight Crime maps out these networks.

Colombian Armed Groups

Colombian criminal groups – principally the Revolutionary Armed Forces of Colombia (Fuerzas Armadas Revolucionarias de Colombia – FARC) — established a foothold in Ecuador in the 1990s, building extensive networks to traffic drugs, arms, and supplies in the border regions.

The Ecuadorian provinces of Esmeraldas, Carchi, and Sucumbíos border the Colombian departments of Putumayo and Nariño. Ecuador’s proximity to these vital coca cultivation and cocaine production zones made it an attractive haven for the FARC, who took advantage of the often-porous border to set up base camps and drug trafficking routes on the Ecuadorian side as they sought shelter from Colombian armed forces.

Since the 2016 demobilization of the FARC, Colombian criminal groups’ influence has waned in Ecuador, with no single criminal group regulating the cross-border drug trade. But in both Sucumbíos and Esmeraldas, FARC dissidents and other organized crime syndicates that formerly worked with the guerrillas picked up where the FARC had left off.

Today, at least three Colombian groups operate on both sides of the border: the Border Command (Los Comandos de la Frontera – CDF), Oliver Sinisterra Front (Frente Oliver Sinisterra – FOS), and the Urías Rondón front. These groups, which are among those collectively known as the ex-FARC mafia, control the main crossing points for transporting cocaine into Ecuador. Their presence also extends into the border provinces.

As Colombian groups are the primary cocaine suppliers for transnational buyers, they often have direct relationships with foreign criminal groups. For example, the FOS supplies cocaine to the Sinaloa Cartel (Cartel de Sinaloa), while the Urías Rondón front sends cocaine to the Jalisco Cartel New Generation (Cartel Jalisco Nueva Generación – CJNG), according to a report from the Colombian and Ecuadorian Ombudsman offices.

Colombian groups subcontract Ecuadorian groups to store, transport, and ship the cocaine to these international partners. Recently, Ecuadorian authorities claimed the FOS works with the Tiguerones, while the Urías Rondón front allies itself with the Choneros, according to an investigation by Colombian newspaper “El Tiempo.” But longstanding partnerships between Colombian and Ecuadorian criminal groups have yet to emerge.

Despite these logistical alliances with Ecuadorian groups, some Colombian groups have expanded their presence deeper into Ecuador, which could suggest a lack of trust in Ecuadorian groups to oversee drug shipments effectively. Ecuadorian authorities allege that they have attacked and intimidated Ecuadorian towns near the border and set up base camps in Ecuadorian territory.

Since August 2023, Ecuadorian authorities have, on at least three separate occasions, captured alleged members of the FOS in Esmeraldas, including the group’s leader Carlos Arturo Landázuri Cortés, alias “El Gringo,” and third-in-command, Janer Cortés Ortiz, alias “Guasón.”

Additionally, Ecuadorian authorities have discovered small-scale coca cultivation and cocaine processing facilities in the border areas of Carchi and Sucumbíos as recently as August 2023. Colombian criminal groups have capitalized on the minimal presence of the state and used these small-scale coca enclaves for laboratories to experiment with crystallization and refining cocaine hydrochloride in Ecuadorian territory, according to a report from the Ecuadorian Organized Crime Observatory (Observatorio Ecuatoriano de Crimen Organizado – OECO).

The presence of cheap precursor chemicals for cocaine production in provinces like Sucumbíos has also contributed to this dynamic, the OECO report added.

Still, the scale of cultivation and production in Ecuador is nowhere near those of Putumayo and Nariño, two of Colombia’s largest coca production hubs.

Mexican Drug Trafficking Organizations

In the past, the Mexicans — who are the main buyers of cocaine trafficked to the United States — set up and maintained a permanent presence in Ecuador, running major operations with substantial commercial and trafficking infrastructure. But today their operations are more agile, relying on the short-term presence of coordinators.

Ecuadorian authorities were able to detain just such a coordinator working for the Sinaloa Cartel in November 2021.

At the time of his arrest, Brayan Rodríguez already faced drug trafficking and money laundering charges in the United States. He entered the country to coordinate with in-country groups providing transport, security, and logistics services, and to personally oversee a large shipment of cocaine scheduled for December of that year, police told Ecuadorian news media.

Today, the Sinaloa Cartel relies on such representatives, sent from Mexico for a short, fixed period, to make deals with Colombian suppliers and Ecuadorian transporters, ensure the deals are kept, and deliver in-cash payments brought in from Mexico. But this was not always the case.

For years, the Sinaloa Cartel had an extensive in-country transport network consisting of Colombian brokers and Ecuadorian transporters working directly for the Cartel’s leaders on a permanent basis.

But, as these fixed figures became increasingly larger targets for Ecuador’s security forces, the Sinaloa Cartel changed tack. Today, the group rotates coordinators who work with a variety of gangs, specializing in different transport methods, including clandestine drug flights, fast boats, and contaminated containers on large cargo ships.

“It is a form of outsourcing,” Ecuadorian security expert, Maria Fernanda Revelo, told InSight Crime.

This system of changing representatives and short-term contractual alliances makes Sinaloa’s operations a moving, ever-changing target that is difficult to track or dismantle.

Since the turn of the decade, the Sinaloa Cartel’s primary rival, the CJNG, has also begun operating in Ecuador.

Like the Sinaloa Cartel, its presence seems to be concentrated in coastal provinces like Manabi and Santa Elena, but less is known about the group’s modus operandi, partly because they are relatively new.

Around the same time that the CJNG came on the scene, some of Ecuador’s smaller gangs, including the Chone Killers, the Tiguerones, and the Lobos, broke ties with the Choneros and forged an alliance against them, which they called “Nueva Generación,” reportedly in honor of their ties to the CJNG. This is sometimes cited as evidence that Mexican groups are fighting a proxy war in Ecuador.

But these alliances are volatile and seem more motivated by internal competition for routes, networks, and recognition, rather than any external forces. The Nueva Generación alliance fell apart in the second half of 2023 with the Tiguerones and Chone Killers re-aligning themselves with the Choneros, according to OECO coordinator Renato Rivera-Rhon.

“But they’ve achieved new legitimacy. They’ve come back as allies and partners, not subordinates to the Choneros,” he said.

Albanian Networks

Albanian networks are another key player in Ecuador and use the country as a base for their Latin American operations. Though often referred to as the “Albanian Mafia,” these networks consist of decentralized family clans and individuals whose relationships with each other and with Ecuadorian groups are fluid.

They have had a presence in Ecuador since at least 2009 when an Albanian national was charged with setting up a front company to ship cocaine to Europe, as a representative of Italy’s powerful ‘Ndrangheta mafia. In the 15 years since, Albanian networks have gone independent.

Albanian agents in Ecuador are often linked to decentralized networks, like “Kompania Bello” and Clan “Farruku,” with tentacles in other Latin American countries and Europe. But these agents are rarely part of a hierarchical structure and though they often work together, they are sometimes competitive, and violently so.

Their primary goal in Ecuador is to negotiate deals with Colombian suppliers and Ecuadorian dispatch networks and to launder money. Albanians’ relationships with local groups are purely operational and nonexclusive: they will contract whatever Ecuadorian group can provide the service they need with the best guarantee and at the lowest price.

Because most cocaine travels to Europe on container ships, their operations are concentrated in the port of Guayaquil and other zones in Guayas and El Oro.

Though their presence is sometimes transitory, many Albanian emissaries have taken up longer-term residency in Ecuador, acquiring wood and fruit companies, as well as import/export businesses, as a way to launder illicit profits and move cocaine. They have also been known to get their hands dirty, carrying out their own assassinations instead of hiring local guns.

In the February 2024 operation, Ecuadorian authorities launched a massive operation against the network of Dritan Gjika’s, alias “Tonny.” Gjika, a trafficker who embodies the Albanian broker model in South America, remains on the run.

He had been based in Ecuador since 2009 and, by the time police arrested over 30 members of his network, it spanned Ecuador, Spain, and the United Kingdom and shipped cocaine to the Netherlands, Spain, Belgium, Russia, Romania, and Albania.

Gjika had direct “contractual” links to Colombian laboratories, who supplied him with four tons of cocaine monthly in Ecuador, according to European and Ecuadorian police. He hired Ecuadorian transporters to move that cocaine to storage points in Cotopaxi, El Oro, Santa Elena, Azuay, Pichincha, and Guayas.

Together with his Ecuadorian business partners, Gjika owned fruit companies used as a front to export cocaine to Europe, concealing smaller cocaine loads, from 15 to 40 kilograms, within banana shipments. Larger shipments were hidden in containers leaving from the port of Guayaquil for European ports. Depending on his needs, Gjika hired several Ecuadorian service providers and is known to have worked with both Adolfo Macías, alias “Fito,” one of the country’s largest drug traffickers and leader of the Choneros, and with Samir Maestre Mena, alias “Samir,” who had a reputation as an accountant to the traffickers before his murder in October 2023.

This article, written by Anastasia Austin and Henry Shuldiner, was originally published by InSight Crime, a Medellín-based foundation dedicated to the investigation and analysis of crime and security in Colombia and Latin America.

Earlier, I posted my positive reflections on Antioquia Governor Andrés Julián Rendon’s ambitions to bring more equality to the countryside, helping female empowerment with a sense of realism and pragmatism.

Even more recently, I had the opportunity today to sit with Carolina Lopera Tobón, director of gender equality in the governor’s office, to discuss the project in more depth and examine where the British Embassy in Colombia can support such a far reaching vision.

The governor has pushed this agenda since the beginning of the campaign and it is truly vital to support the women living in rural areas. On any metric, or according to any survey, women in the countryside work at least as hard — but are far from emancipated when it comes to wages and conditions.

The new governor’s office aims to improve that situation.

The goal is to create education centers, rural schools and productive farms, where women will receive the training and support that will give them them both the skills and, more essentially, the confidence to make their own way in the world. Thereby steering them away from the traditional role of homemakers and providing opportunities for a more independent life.

One of the largest challenges is convincing those women, be they teenagers or grandmothers, that they are capable of learning new skills and changing their lives as well as those of their families.

There is much to do and there is a sober realization that it will be hard work. Infrastructure needs to be built, studies need to be undertaken in order to align supply and demand.

But there is a clear ambition to change the rural environment.

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Chilean Low-Cost Airline JetSmart launched domestic passenger operations of its Colombian subsidiary JetSmart Colombia last Thursday morning with an 11am flight between Bogotá and Medellín. The same day saw inaugural flights from Medellín to Bogotá and also Medellín to Cartagena. The airline, backed in part by American Airlines and private equity firm Indigo Partners, seeks to bring a low-cost option back to Colombia’s growing aviation market after the demise of low-cost carriers Viva and Ultra just over a year ago. Copa-owned Wingo operates low-cost routes in Colombia, but with a conservative footprint.

Click above to watch video

In addition to JetSmart’s domestic operations, starting with three Airbus A320neo aircraft, the airline has already been flying international routes between Medellín, Lima Peru, and Santiago, Chile.

Travelers will be able to take advantage of exclusive discounts on domestic routes with tickets starting at $47,800 Colombian pesos (including fees and taxes) or about $13 US Dollars.

Jetsmart also announced Thursday that the airline’s Colombian base of operations will be at the José María Córdova International Airport in Rionegro, Colombia; a suburb of Medellín.  CEO Estuardo Ortíz (above photo, left) credited the work of the mayoral administrations of Medellín, Rionegro, the Governor of Antioquia, and Airport operations contractor Airplan.

“We believe, trust and invest in Colombia, and especially today we are committed to the region of Antioquia and its more than six and a half million inhabitants, to contribute to tourism, development and connectivity of all communities, just as we have already done with the 25 million people who have already flown with us throughout South America. We want the region to go out into the world, and for Antioquia, Medellín and the region to connect from the airport in Rionegro to more destinations and frequencies, both domestic and international. Our new operation in Colombia is an important step in our vision of 100 million passengers and 100 aircraft by 2028,” said Ortíz.

JetSmart launched a total of eight direct routes from Medellín to Santa Marta, Cartagena and Bogotá; and from Bogota, to Cartagena, Pereira, Santa Marta and Medellín, as well as from Cartagena to Pereira and Cali. These domestic routes are in addition to the seven international routes that JetSmart flies from Medellín to Chile and Peru, with connections to Argentina and Uruguay. Codeshare agreements will provide connectivity north to the United States through American Airlines, and JetSmart has announced coming participation to American Airlines’ AAdvantage loyalty program.

JetSmart is part of the airline portfolio of U.S. investment fund Indigo Partners, along with airlines Frontier in the United States, WizzAir in Europe, Volaris in Mexico and Cebu Pacific in Asia.

Indigo Partners Principal Brian Franke (above photo, right) said that “We are looking forward to the start of JetSMART’s domestic operations in Colombia and continue to invest in the region to develop the ultra-low-cost model. We see tremendous growth potential in Colombia, and as we expand JetSmart we continue to provide affordable air travel to more people and communities.”

Operating Out Of Terminal 2 In Bogotá

Thursday morning, JetSmart celebrated its Colombian domestic launch with a press conference in the Puente Aereo, or Terminal 2 of Bogotá’s El Dorado International Airport. Bogotá airport operator OPAIN renovated parts of Terminal 2 with new chairs and seating areas, installing Veripax technology for digital reading of boarding passes, and an exclusive area for VIP and official travelers. They also expanded the gate areas, remodeled the bathrooms, installed new floors and charging areas.

“We celebrate the start of JetSMART’s domestic operations in the country, as this strengthens the sector and boosts El Dorado’s position as the main hub for connection to the regions of Colombia. We have adapted Terminal 2 – the former Air Bridge, so that travelers can take their domestic flights in a more comfortable and agile way,”  said Natalí Leal, General Manager of OPAIN.

It is important that domestic passengers flying JetSmart from Bogotá keep in mind that flights leave from Terminal 2, while international flights still arrive and depart from the main terminal. There is a free shuttle that travels between the two airport terminals. Travelers must allow adequate time for transfers, and if necessary, immigration for international flights. Passengers arriving to El Dorado International Airport for domestic JetSmart flights should be explicit with transportation providers that they will be departing from Terminal 2 or “El Puente Aereo.”

In The Colombia Business News Recap for March 16 2023:

• Why did the US release one of Colombia’s 10 most wanted criminals after he crossed the border illegally from México into Texas?
• President Gustavo Petro’s frustration is reaching the boiling point as his “revolutions” fail and he calls for a constituent assembly (constitutional convention).
• JetSmart launches domestic operations in Colombia
• Luz Adriana Camargo is the new attorney general
• Federico Gutierrez submits 501 corruption allegations implicating the Daniel Quintero administration to prosecutors and inspector general’s office.
• Ecopetrol is facing a corporate governance crisis. Petro has said he wants to end fossil fuels. Does he want to end Ecopetrol?

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Last Tuesday, Colombia’s Supreme Court of Justice elected criminal law attorney Luz Adriana Camargo Garzón as the country’s new fiscal, or attorney general. In Colombia, the Supreme Court selects by vote candidates for Attorney General from a list of nominees submitted by the President.

Camargo has a law degree from Bogotá’s Universidad De La Sabana, and a criminal law specialization from the Universidad Libre de Colombia. She has a professional career spanning 35 years, in which she has been a criminal investigation judge, a lawyer for the Sectional Directorate of Criminal Investigation of Bogotá, and an official at the Attorney General’s Office where she was a delegate prosecutor before the criminal judges. of the circuit, assistant prosecutor and delegate prosecutor before the Supreme Court of Justice. She worked as an assistant magistrate of the Criminal Cassation Chamber of the Supreme Court of Justice.

Camargo served as head of the investigation and litigation department at the UN International Commission against Impunity in Guatemala. She has been a consultant for the Inter-American Commission on Human Rights in the Office of the Special Rapporteur for Freedom of Expression and was part of the Special Monitoring Team for the precautionary measures granted for the kidnapping of three journalists in Ecuador. She provided consulting to institutions such as Consucol SAS, Corporación Justicia y Democracia, the Forjando Futuros foundations in association with Indepaz, Intereclesial de Justicia y Paz, the Colombian Commission of Jurists and the Somos Defensores Program.

Source: Colombia’s Supreme Court of Justice