Latin Finance - July 2008 - (Page 1)

Contents July/August 2008 INVESTMENT BANKING OUTLOOK 10 Pure investment banks are ramping up in LatAm amid crisis at home. They must outsmart locals with relationships and commercial banks wielding hefty balance sheets. COMPENSATION SURVEY 18 Investment bank compensation may drop slightly this year, but LatAm financiers should fare much better than those in developed markets. COLOMBIA INVESTMENT BANKING 22 As local firms grow to compete in global markets, Colombian investment banks are profiting from an associated M&A wave. The trend looks set to continue. BORROWERS VS INVESTORS 18 Compensation Survey Borrowers vs Investors 24 24 The LatAm debt markets are back, but a price gulf looms between investors and issuers. Neither side seems willing to budge. BANORTE PROFILE 26 Mexico’s last sizeable indigenous financial institution is doing a roaring trade with mortgages, SMEs and banking states. It claims not to be for sale. BRASKEM FINANCING STRATEGY 28 LatAm’s largest petrochemicals company is growing through acquisition and regional ventures. It is constrained by Petrobras, a leading shareholder. BRAZIL HYDRO FINANCE 26 Banorte Profile Brazil Hydro Finance 30 30 Two multi-billion dollar Brazil hydro projects seek financing and the government is providing ample support. The biggest transaction is yet to come. PERU PORT PRIVATIZATION 32 Peru requires substantial investment to position itself as a shipping gateway to Asia. Investors face resistance from unions, congress and a discouraging history. PANAMA MONEY FLOWS 34 Panama is developing as a regional money center, drawing the majority of flow from politically unstable countries. Locals also generate significant deposits. 34 Panama Money Flows Argentina Local Markets 36 ARGENTINA LOCAL MARKETS 36 Investors are punishing Argentina for heterodox economic management, undermining local markets activity. The situation will get worse before it gets better. 38 LatinFinance® (USPS 004-662), (ISSN 1048-535X) is published monthly except bimonthly December/January and July/August by Latin American Financial Publications, Inc., 2600 Douglas Road., Suite 410, Coral Gables, FL 33134 USA. Periodicals postage paid at Miami, FL and at additional mailing offices. POSTMASTER: SEND ADDRESS CHANGES TO: LATINFINANCE, 2600 DOUGLAS ROAD, SUITE 410, CORAL GABLES, FLORIDA 33134 USA Copyright© 2008 Latin American Financial Publications, Inc. All rights reserved. Reproduction in whole or in part of any text, photograph, or illustration without written permission from the publisher is strictly prohibited. Title is protected through a trademark registration with the US Patent Office. GUIDE TO BANKING TECHNOLOGY Who said that? “A lack of revenue and profitability among US banks could spell trouble for expansion efforts overseas, or fledgling efforts in emerging markets.” See page 55 LatinFinance Round Tables are underwritten by sponsors, although the magazine’s editors retain control over the content of these articles to ensure their objectivity and independence. July/August 2008 LATINFINANCE 1

Table of Contents Feed for the Digital Edition of Latin Finance - July 2008

Latin Finance - July 2008 Contents Investment Banking Outlook Compensation Survey Colombia Investment Banking Borrowers vs. Investors Banorte Profile Braskem Financing Strategy Brazil Hydro Finance Peru Port Privatization Panama Money Flows Argentina Local Markets Guide to Banking Technology Who Said That?

Latin Finance - July 2008

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