Latin Finance - November/December 2011 - 44

2011

issuers, such as Pemex and CFE. However, BBVA’s list also includes wellknown foreigners making their debuts, such as Gas Natural (4 billion pesos) and Telefónica Mexico(6 billion pesos). “Volume has continued to be strong, when you compare it to other markets,” says Ricardo Cano, Bancomer’s head of DCM. “There is a very solid investor base in Mexico continuing to demand new assets.” Initially, Cano says this will mean more issuance from A-rated locals and wellknown internationals. A growing investor base and a need to diversify portfolios, leaves a lot of room for the development of a local high-yield markets, though such hopes have been sabotaged in recent years by problems in the global market. Also on the horizon should be a greater capacity for project financings in the bond market. As an example, Cano points to the September pricing of construction firm ICA’s securitization that raised 7.1 billion pesos to build prisons – the first domestic bond for a to-be-constructed project. “In the next few years, a lot of what is done in the bank market will be taken out in the bond market,” Cano says. He sees Mexicans’ overall capex spending remaining the same, which should keep the loan, capital and M&A markets strong in the immediate future. Bancomer booked $345 million from four equity deals during the period, 14% of the market in a 12-month period which represented a bit of a resurgence for Mexican equity. Highlights included the 11.2 billion peso IPO from construction company OHL Mexico, and a 9.2 billion peso follow-on for Mexican bank Banorte. LF

this year from the country’s financial system as it transforms itself into a regional player after its acquisition of Central America’s BAC-Credomatic. In a year that saw little cross-border activity among LatAm banks, Banco de Bogotá was one of the most interesting expansion plays, especially given the bank’s conservative background.

Expanding outside Colombia: Figueroa “Banco de Bogotá is a traditional commercial lender that has now become a universal bank with a credit card company,” says Felipe Carvallo, an analyst in the financial institutions group at Moody’s. Late last year, the bank closed the $1.9 billion purchase of financial conglomerate BAC Credomatic, which has a presence in all countries from Mexico down to Panama. The acquisition was seen as a sensible way to diversify its revenue base and gave it access to a Central American population that is similar in size to the 45 million seen in Colombia. It also made sense in the context of increasing competition in Colombia, where banks the world over are looking to set up shop. The purchase also o ered Banco de Bogotá an array of businesses from asset management to insurance to credit cards. “Now they have consumer financing expertise that the new bank brought and they can apply that within Colombia,” says Carvallo.

Best Latin American Regional Strategy - Banco de Bogotá

Best Bank - Colombia

A Taste for Travel
anco de Bogotá may be the oldest bank in Colombia, but it has become one of the more exciting stories to emerge

B

Banco de Bogotá, recently upgraded to investment grade following a similar move on the sovereign this year, reported a slightly lower return on assets (ROA) as of June 2011 of 1.9% from 2.0% in the same period of June 2010, based on higher operating and integration costs and lower market interest rates. The bank also reported a lower e ciency ratio of 49.6% from 41.7% in line with acquisition related costs, but according to Carvallo still remains the most e cient bank in the country. Banco de Bogotá reports, however, that return on equity (ROE) rose to 22.4%, as of June 2011 from 22.1%, as of June 2010. “We aim to remain a universal bank in Colombia by improved customer service, greater e ciency, and with a goal of an ROE of more than 20% in addition to o ering a comprehensive portfolio of financial services that enable the bank to increase its market share in deposits and loans by giving a larger role in retail banking,” says CEO Alejandro Figueroa. Banco de Bogotá has always generated strong profits even during Colombia’s worst economic crises, Figueroa says. The bank now has domestic and international presence in over 10 countries. It hopes to expand its operations inside and outside the country, and to enhance its financial strength, giving greater confidence and support to its customers and shareholders. In the coming year, the bank plans to continue expanding its People segment which o ers consumers cards, insurance, mortgage and other services. Microfinance and microcredit markets are also an area in which it hopes to participate. For its business segment, the bank will work on enhancing its portfolio of products and services and specialize in fast-growing economic sectors such as mining and infrastructure, for example, through an integrated portfolio of products and services o ered by the group’s subsidiaries. The bank has diversified its product mix. Corporate lending represented 67% of loans, consumer loans 23% and residential mortgages 9%, as of year-end 2010, according to Moody’s. In late October, the bank was

44 LATINFINANCE

November/December 2011



Latin Finance - November/December 2011

Table of Contents for the Digital Edition of Latin Finance - November/December 2011

Latin Finance - November/December 2011
Contents
Contagion Risk
Mexican Credit
China Investment
Loan Markets
Mexico Banks
Sub-Sovereign Debt
Banks of the Year 2011
Argentina Investor Report
Reversal of Fortunes
Latin Finance - November/December 2011 - Latin Finance - November/December 2011
Latin Finance - November/December 2011 - Cover2
Latin Finance - November/December 2011 - Contents
Latin Finance - November/December 2011 - 2
Latin Finance - November/December 2011 - 3
Latin Finance - November/December 2011 - 4
Latin Finance - November/December 2011 - 5
Latin Finance - November/December 2011 - 6
Latin Finance - November/December 2011 - 7
Latin Finance - November/December 2011 - 8
Latin Finance - November/December 2011 - 9
Latin Finance - November/December 2011 - 10
Latin Finance - November/December 2011 - 11
Latin Finance - November/December 2011 - Contagion Risk
Latin Finance - November/December 2011 - 13
Latin Finance - November/December 2011 - 14
Latin Finance - November/December 2011 - 15
Latin Finance - November/December 2011 - 16
Latin Finance - November/December 2011 - 17
Latin Finance - November/December 2011 - 18
Latin Finance - November/December 2011 - 19
Latin Finance - November/December 2011 - 20
Latin Finance - November/December 2011 - 21
Latin Finance - November/December 2011 - Mexican Credit
Latin Finance - November/December 2011 - 23
Latin Finance - November/December 2011 - 24
Latin Finance - November/December 2011 - 25
Latin Finance - November/December 2011 - China Investment
Latin Finance - November/December 2011 - 27
Latin Finance - November/December 2011 - 28
Latin Finance - November/December 2011 - 29
Latin Finance - November/December 2011 - Loan Markets
Latin Finance - November/December 2011 - 31
Latin Finance - November/December 2011 - 32
Latin Finance - November/December 2011 - 33
Latin Finance - November/December 2011 - Mexico Banks
Latin Finance - November/December 2011 - 35
Latin Finance - November/December 2011 - Sub-Sovereign Debt
Latin Finance - November/December 2011 - 37
Latin Finance - November/December 2011 - Banks of the Year 2011
Latin Finance - November/December 2011 - 39
Latin Finance - November/December 2011 - 40
Latin Finance - November/December 2011 - 41
Latin Finance - November/December 2011 - 42
Latin Finance - November/December 2011 - 43
Latin Finance - November/December 2011 - 44
Latin Finance - November/December 2011 - 45
Latin Finance - November/December 2011 - 46
Latin Finance - November/December 2011 - 47
Latin Finance - November/December 2011 - 48
Latin Finance - November/December 2011 - 49
Latin Finance - November/December 2011 - 50
Latin Finance - November/December 2011 - 51
Latin Finance - November/December 2011 - 52
Latin Finance - November/December 2011 - 53
Latin Finance - November/December 2011 - 54
Latin Finance - November/December 2011 - 55
Latin Finance - November/December 2011 - 56
Latin Finance - November/December 2011 - 57
Latin Finance - November/December 2011 - 58
Latin Finance - November/December 2011 - 59
Latin Finance - November/December 2011 - 60
Latin Finance - November/December 2011 - Argentina Investor Report
Latin Finance - November/December 2011 - 62
Latin Finance - November/December 2011 - 63
Latin Finance - November/December 2011 - Reversal of Fortunes
Latin Finance - November/December 2011 - Cover3
Latin Finance - November/December 2011 - Cover4
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