Latin Finance - January/February 2012 - 26

food company Quero Alimentos, and to Brazil’s Marfrig on its $1.3bn purchase of Keystone Foods in the US. “There are large traditional national champions that have strong positions in the local markets, are generating cash like crazy and are looking for opportunities outside [their countries],” says Ignacio Benito, a managing director at JPMorgan, and co-head of LatAm M&A. The bank also acted as financial advisor to Brazil’s Odebrecht Oil and Gas when it agreed to sell a minority stake to Temasek Holdings, marking the Singaporean sovereign wealth fund’s first Latin American investment since setting up o ce in São Paulo in 2008. The bank was also financial advisor to Ixe on its merger with Banorte in Mexico, helping it become the third largest banking entity in the country. Going forward, Aguzin expects to see more interest from financial investors, which will not only be buying assets in LatAm, but also perhaps realizing exits as well. “I would expect financial sponsors to be a more relevant part of our business, same goes for sovereign wealth funds,” he says. Aguzin points to how Latin American borrowers can now access record low financing, in the local markets in Chile, Peru and Colombia, which may encourage financial investors to take on more leverage than they did in the past. LF

mandates on a wide variety of corporate credits and sovereign names. Yet Bank of America Merrill Lynch (BAML) stood out among the pack for the diversity and complexity of transactions it undertook during the qualifying period. Not always the largest volume generator, the shop also surprised by pushing out large competitors to make the top of the cross-border DCM rankings. During the period under consideration, BAML could boast $10.39 billion in volume from 47 deals, representing

In front of clients: Urmeneta a 13.09% percent share, followed by JPMorgan and then Deutsche Bank, according to Dealogic data. “We are not the biggest lender in LatAm,” says Augusto Urmeneta, the bank’s head of LatAm DCM. “We do use that and leverage it, but it isn’t because of lending that we are number one in Peru and Mexico. We are consistently in front of the client and because of execution we have mandates.” The bank managed a diverse lineup, with a total of 15 cross-border deals for issuers in Brazil, 12 in Mexico, four in Colombia and six each in Peru and Argentina. Whether it was sovereign business, corporate mandates, high-yield paper, investment-grade bonds, liability management or the increasingly popular global local currency trades, BAML shone under most criteria. The bank’s sovereign work included

Bank of America Merrill Lynch

Bond House

Ahead of the Trend
ankers covering LatAm DCM over the last year or so shouldn’t really grumble. Cross-border volumes may not have reached 2010’s record levels, but they were not far o despite the periodic market shutdowns caused by Europe’s sovereign debt crisis. In this environment, several leading banks excelled as they battled for

B

Colombia’s first issuance as a fullyfledged investment-grade credit in 10 years, allowing the sovereign to sell its largest-ever single tranche bond and its lowest-ever coupon for a dollar deal with a 10-year tenor. With nine Bs behind it, the $2bn 4.375% bond put the country back on the map among a broader set of investors. The period also saw BAML leading sizeable deals for Mexico and the Province of Buenos Aires, as well as quasisovereigns such as Mexican state-owned utility Comisión Federal de Electricidad, which came to market in May to price a $1 billion 2020 bond. The o ering was the borrower’s first international trade in 14 years and its first ever in the 144A/ RegS market. The bond saw $6.5 billion in orders. BAML was also selected by market veteran Mexican telecom América Móvil when it decided to move ahead with a $2.5 billion two-tranche o ering in August. The new 2016 and a separate tap of its 2040 notes allowed the highgrade issuer to achieve the lowest dollar coupon on a five-year, fixed-rate bond from a LatAm issuer and the second lowest dollar coupon ever in the global telecommunications sector. In a market that is now dominated by corporate issuance and newcomers clambering to raise longer-term money abroad to finance growth, BAML was also clearly ahead of the trend and was responsible for more corporate volume than any other bank over this period. For instance, in the high-yield space, it led a $100 million 9.75% senior 2018 non-call four from Brazil’s Cimento Tupi, representing an inaugural debt o ering in the international capital markets. Its high-yield work also extended to Mexican construction firm ICA’s first bond in 15 years, as well as a debut from Peruvian energy company Inkia. It also led a rare $800 million 2015 floater for Mexican cement company Cemex. “We don’t discriminate on size,” Urmeneta says. “We are proud of doing a $100 million transaction for Tupi and $50 million for Banco Supervielle in Argentina.” Large deals are great to see on the league tables, Urmeneta explains, but

26 LATINFINANCE

January/February 2012



Latin Finance - January/February 2012

Table of Contents for the Digital Edition of Latin Finance - January/February 2012

Latin Finance - January/February 2012
Contents
Latam-India Trade
Subnational Finance
Deals of the Year
A US Shop Takes a Leadership Role
Toppling the Competition
Swiss Bank Keeps Top Spot
Fast Food Victory
Daring E&P Debut
Complex Pan-Regional Asset Sale
A First for Mexican Project Financing
A New Quasi-Sovereign Benchmark
Creating a Niche
Legal Lead
Brazil Debt
Project Finance
Brazil Sustainability Index
Latin Finance - January/February 2012 - Latin Finance - January/February 2012
Latin Finance - January/February 2012 - Cover2
Latin Finance - January/February 2012 - 1
Latin Finance - January/February 2012 - Contents
Latin Finance - January/February 2012 - 3
Latin Finance - January/February 2012 - 4
Latin Finance - January/February 2012 - 5
Latin Finance - January/February 2012 - 6
Latin Finance - January/February 2012 - 7
Latin Finance - January/February 2012 - 8
Latin Finance - January/February 2012 - 9
Latin Finance - January/February 2012 - 10
Latin Finance - January/February 2012 - 11
Latin Finance - January/February 2012 - 12
Latin Finance - January/February 2012 - 13
Latin Finance - January/February 2012 - Latam-India Trade
Latin Finance - January/February 2012 - 15
Latin Finance - January/February 2012 - 16
Latin Finance - January/February 2012 - 17
Latin Finance - January/February 2012 - 18
Latin Finance - January/February 2012 - 19
Latin Finance - January/February 2012 - Subnational Finance
Latin Finance - January/February 2012 - 21
Latin Finance - January/February 2012 - 22
Latin Finance - January/February 2012 - Deals of the Year
Latin Finance - January/February 2012 - A US Shop Takes a Leadership Role
Latin Finance - January/February 2012 - 25
Latin Finance - January/February 2012 - Toppling the Competition
Latin Finance - January/February 2012 - 27
Latin Finance - January/February 2012 - 28
Latin Finance - January/February 2012 - 29
Latin Finance - January/February 2012 - Swiss Bank Keeps Top Spot
Latin Finance - January/February 2012 - 31
Latin Finance - January/February 2012 - 32
Latin Finance - January/February 2012 - 33
Latin Finance - January/February 2012 - Fast Food Victory
Latin Finance - January/February 2012 - 35
Latin Finance - January/February 2012 - 36
Latin Finance - January/February 2012 - 37
Latin Finance - January/February 2012 - Daring E&P Debut
Latin Finance - January/February 2012 - 39
Latin Finance - January/February 2012 - 40
Latin Finance - January/February 2012 - 41
Latin Finance - January/February 2012 - 42
Latin Finance - January/February 2012 - Complex Pan-Regional Asset Sale
Latin Finance - January/February 2012 - 44
Latin Finance - January/February 2012 - 45
Latin Finance - January/February 2012 - 46
Latin Finance - January/February 2012 - 47
Latin Finance - January/February 2012 - A First for Mexican Project Financing
Latin Finance - January/February 2012 - 49
Latin Finance - January/February 2012 - A New Quasi-Sovereign Benchmark
Latin Finance - January/February 2012 - 51
Latin Finance - January/February 2012 - Creating a Niche
Latin Finance - January/February 2012 - 53
Latin Finance - January/February 2012 - Legal Lead
Latin Finance - January/February 2012 - 55
Latin Finance - January/February 2012 - 56
Latin Finance - January/February 2012 - Brazil Debt
Latin Finance - January/February 2012 - Project Finance
Latin Finance - January/February 2012 - 59
Latin Finance - January/February 2012 - 60
Latin Finance - January/February 2012 - 61
Latin Finance - January/February 2012 - Brazil Sustainability Index
Latin Finance - January/February 2012 - 63
Latin Finance - January/February 2012 - 64
Latin Finance - January/February 2012 - Cover3
Latin Finance - January/February 2012 - Cover4
https://www.nxtbook.com/nxtbooks/latinfinance/0319QMR
https://www.nxtbook.com/nxtbooks/latinfinance/1218JYM
https://www.nxtbook.com/nxtbooks/latinfinance/paraguay_2018
https://www.nxtbook.com/nxtbooks/latinfinance/8320YTM
https://www.nxtbook.com/nxtbooks/latinfinance/8465TBM
https://www.nxtbook.com/nxtbooks/latinfinance/1476YBW
https://www.nxtbook.com/nxtbooks/latinfinance/7835THM
https://www.nxtbook.com/nxtbooks/latinfinance/8655TGL
https://www.nxtbook.com/nxtbooks/latinfinance/0614IJP
https://www.nxtbook.com/nxtbooks/latinfinance/ecuador_20170910
https://www.nxtbook.com/nxtbooks/latinfinance/2713KNP
https://www.nxtbook.com/nxtbooks/latinfinance/4982CFT
https://www.nxtbook.com/nxtbooks/latinfinance/7803HWE
https://www.nxtbook.com/nxtbooks/latinfinance/3829THA
https://www.nxtbook.com/nxtbooks/latinfinance/7891MDD
https://www.nxtbook.com/nxtbooks/latinfinance/7714JCR
https://www.nxtbook.com/nxtbooks/latinfinance/5619CMK
https://www.nxtbook.com/nxtbooks/latinfinance/6939ASL
https://www.nxtbook.com/nxtbooks/latinfinance/1364ASF
https://www.nxtbook.com/nxtbooks/latinfinance/0453DAS
https://www.nxtbook.com/nxtbooks/latinfinance/0453DAS_supp
https://www.nxtbook.com/nxtbooks/latinfinance/1304APV
https://www.nxtbook.com/nxtbooks/latinfinance/7234GSD
https://www.nxtbook.com/nxtbooks/latinfinance/1643XGS
https://www.nxtbook.com/nxtbooks/latinfinance/9511JKM_supp
https://www.nxtbook.com/nxtbooks/latinfinance/9511JKM
https://www.nxtbook.com/nxtbooks/latinfinance/8745TNV
https://www.nxtbook.com/nxtbooks/latinfinance/3629PBC
https://www.nxtbook.com/nxtbooks/latinfinance/7466TBC_HSBC
https://www.nxtbook.com/nxtbooks/latinfinance/7466TBC_supp
https://www.nxtbook.com/nxtbooks/latinfinance/7466TBC
https://www.nxtbook.com/nxtbooks/latinfinance/9463RVB
https://www.nxtbook.com/nxtbooks/latinfinance/7345GPY
https://www.nxtbook.com/nxtbooks/latinfinance/6398TVB
https://www.nxtbook.com/nxtbooks/latinfinance/4899EXM_supp
https://www.nxtbook.com/nxtbooks/latinfinance/4899EXM
https://www.nxtbook.com/nxtbooks/latinfinance/3885CWS
https://www.nxtbook.com/nxtbooks/latinfinance/45923GBC
https://www.nxtbook.com/nxtbooks/latinfinance/67449NBD
https://www.nxtbook.com/nxtbooks/latinfinance/46733NLP
https://www.nxtbook.com/nxtbooks/latinfinance/78456HCL
https://www.nxtbook.com/nxtbooks/latinfinance/89456RBM
https://www.nxtbook.com/nxtbooks/latinfinance/22278HBL
https://www.nxtbook.com/nxtbooks/latinfinance/2895YBM
https://www.nxtbook.com/nxtbooks/latinfinance/9033TBM
https://www.nxtbook.com/nxtbooks/latinfinance/8934TNP
https://www.nxtbook.com/nxtbooks/latinfinance/costarica20130304
https://www.nxtbook.com/nxtbooks/latinfinance/4672PNB
https://www.nxtbook.com/nxtbooks/latinfinance/9377BKL
https://www.nxtbook.com/nxtbooks/latinfinance/drmtest
https://www.nxtbook.com/nxtbooks/latinfinance/drmtest2
https://www.nxtbook.com/nxtbooks/latinfinance/5532LMC
https://www.nxtbook.com/nxtbooks/latinfinance/9044TBM
https://www.nxtbook.com/nxtbooks/latinfinance/4877RBC
https://www.nxtbook.com/nxtbooks/latinfinance/3008JHV
https://www.nxtbook.com/nxtbooks/latinfinance/3728YBC
https://www.nxtbook.com/nxtbooks/latinfinance/9337KLM
https://www.nxtbook.com/nxtbooks/latinfinance/5674GNJ
https://www.nxtbook.com/nxtbooks/latinfinance/8330KMC
https://www.nxtbook.com/nxtbooks/latinfinance/7663HCM
https://www.nxtbook.com/nxtbooks/latinfinance/2319ZMB
https://www.nxtbook.com/nxtbooks/latinfinance/7110MKL
https://www.nxtbook.com/nxtbooks/latinfinance/8599FHG
https://www.nxtbook.com/nxtbooks/latinfinance/4517HJK
https://www.nxtbook.com/nxtbooks/latinfinance/7813GHB
https://www.nxtbook.com/nxtbooks/latinfinance/1564FBM
https://www.nxtbook.com/nxtbooks/latinfinance/8884HGV
https://www.nxtbook.com/nxtbooks/latinfinance/7863SVB
https://www.nxtbook.com/nxtbooks/latinfinance/5233SFB
https://www.nxtbook.com/nxtbooks/latinfinance/5899SML
https://www.nxtbook.com/nxtbooks/latinfinance/4311PMN
https://www.nxtbook.com/nxtbooks/latinfinance/1366FBB
https://www.nxtbook.com/nxtbooks/latinfinance/9355AXC
https://www.nxtbook.com/nxtbooks/latinfinance/8559EBN
https://www.nxtbook.com/nxtbooks/latinfinance/8244QXC
https://www.nxtbook.com/nxtbooks/latinfinance/1779BBN
https://www.nxtbook.com/nxtbooks/latinfinance/7144XVB
https://www.nxtbook.com/nxtbooks/latinfinance/8971QGH
https://www.nxtbook.com/nxtbooks/latinfinance/200805
https://www.nxtbook.com/nxtbooks/latinfinance/200804
https://www.nxtbook.com/nxtbooks/latinfinance/200803
https://www.nxtbookmedia.com