Latin Finance - March/April 2012 - 31
Brazil
Investor Report
Banking on Growth
LatAm’s largest economy is still a magnet for foreign inflows as lower benchmark rates help spur economic growth and issuance activity.
ll roads still lead to Brazil for investors looking at LatAm, especially now that growth in the region’s largest economy is expected to rebound this year. The Central Bank’s sudden easing last year in the face of slowing growth abroad has done much to support a turnaround, say economists. Indeed, Brazil’s growth story is alive and well. One example of this is a wealth management industry that has seen assets under management soar at time when Brazil is producing some 19 millionaires a day. The country’s benchmark Selic rate is expected to hit single digits this year as monetary authorities continue to ease. This in turn should not only bolster consumer demand, but provide a boost to the local credit market as investors seek yields away from government debt. This is already happening on the international debt front, where single B corporates that wouldn’t have dreamt of selling bonds last year are now taking advantage of renewed risk appetite. Buyers should beware, though. Lupatech is just one example of how market euphoria can quickly turn to tears. In this issue, LatinFinance examines why the Brazilian oil and gas equipment manufacturer is now struggling to meet financial obligations just five years after it made its own international debut. Meanwhile, Brazilian companies of various stripes continue to lead the charge to the cross-border markets, including oil company Petrobras, which is replacing longstanding CEO Sergio Gabrielli with technocrat Maria Das Graças Foster. LatinFinance explores what this changing of the guard means for the oil company and how valuations are rising in this sector. It also looks at whether other Brazilian banks might follow in the wake of Banco do Brasil’s hybrid Tier I perp – a structure designed to allow financial institutions to adapt to a changing regulatory landscape ahead of Basel III rules. LF
A
Also in this section
PETROBRAS OUTLOOK TESTING HYBRID PERPS LUPATECH STRUGGLES WEALTH MANAGEMENT OIL RUSH UPDATE page 32 page 36 page 39 page 44 page 47
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For daily news on Brazilian portfolio and direct investment, see www.latinfinance.com
March/April 2012
LatinFinance 31
http://www.latinfinance.com
Latin Finance - March/April 2012
Table of Contents for the Digital Edition of Latin Finance - March/April 2012
Latin Finance - March/April 2012
Contents
Man of the Year
Local Currency Debt
Brazil Private Equity
Asia Buyside
Secondary Markets
Finance Ministry Scorecards
Markets cheer the appointment of a new Petrobras CEO
Banco do Brasil breaks new ground with hybrid perp
Oil services company Lupatech faces an uphill struggle
Bankers vie for a foothold in a booming wealth management segment
Offshore assets soar in price as foreigners fight to secure oil-rich real-estate
Vitro’s restructuring raises questions over bankruptcy system
Bottling-sector consolidation is underway. More is expected
Chile fails in efforts to kick start huaso market
Can Peru meet investment needs in the face of potential social unrest?
Colombia’s banking system is enjoying its salad days amid an acquisition frenzy
Latin Finance - March/April 2012 - Latin Finance - March/April 2012
Latin Finance - March/April 2012 - Cover2
Latin Finance - March/April 2012 - Contents
Latin Finance - March/April 2012 - 2
Latin Finance - March/April 2012 - 3
Latin Finance - March/April 2012 - 4
Latin Finance - March/April 2012 - 5
Latin Finance - March/April 2012 - 6
Latin Finance - March/April 2012 - 7
Latin Finance - March/April 2012 - 8
Latin Finance - March/April 2012 - 9
Latin Finance - March/April 2012 - 10
Latin Finance - March/April 2012 - 11
Latin Finance - March/April 2012 - Man of the Year
Latin Finance - March/April 2012 - 13
Latin Finance - March/April 2012 - 14
Latin Finance - March/April 2012 - 15
Latin Finance - March/April 2012 - Local Currency Debt
Latin Finance - March/April 2012 - 17
Latin Finance - March/April 2012 - 18
Latin Finance - March/April 2012 - Brazil Private Equity
Latin Finance - March/April 2012 - 20
Latin Finance - March/April 2012 - 21
Latin Finance - March/April 2012 - Asia Buyside
Latin Finance - March/April 2012 - 23
Latin Finance - March/April 2012 - Secondary Markets
Latin Finance - March/April 2012 - 25
Latin Finance - March/April 2012 - Finance Ministry Scorecards
Latin Finance - March/April 2012 - 27
Latin Finance - March/April 2012 - 28
Latin Finance - March/April 2012 - 29
Latin Finance - March/April 2012 - 30
Latin Finance - March/April 2012 - 31
Latin Finance - March/April 2012 - Markets cheer the appointment of a new Petrobras CEO
Latin Finance - March/April 2012 - 33
Latin Finance - March/April 2012 - 34
Latin Finance - March/April 2012 - 35
Latin Finance - March/April 2012 - Banco do Brasil breaks new ground with hybrid perp
Latin Finance - March/April 2012 - 37
Latin Finance - March/April 2012 - 38
Latin Finance - March/April 2012 - Oil services company Lupatech faces an uphill struggle
Latin Finance - March/April 2012 - 40
Latin Finance - March/April 2012 - 41
Latin Finance - March/April 2012 - 42
Latin Finance - March/April 2012 - 43
Latin Finance - March/April 2012 - Bankers vie for a foothold in a booming wealth management segment
Latin Finance - March/April 2012 - 45
Latin Finance - March/April 2012 - 46
Latin Finance - March/April 2012 - Offshore assets soar in price as foreigners fight to secure oil-rich real-estate
Latin Finance - March/April 2012 - 48
Latin Finance - March/April 2012 - 49
Latin Finance - March/April 2012 - Vitro’s restructuring raises questions over bankruptcy system
Latin Finance - March/April 2012 - 51
Latin Finance - March/April 2012 - 52
Latin Finance - March/April 2012 - Bottling-sector consolidation is underway. More is expected
Latin Finance - March/April 2012 - 54
Latin Finance - March/April 2012 - 55
Latin Finance - March/April 2012 - Chile fails in efforts to kick start huaso market
Latin Finance - March/April 2012 - 57
Latin Finance - March/April 2012 - 58
Latin Finance - March/April 2012 - Can Peru meet investment needs in the face of potential social unrest?
Latin Finance - March/April 2012 - 60
Latin Finance - March/April 2012 - 61
Latin Finance - March/April 2012 - 62
Latin Finance - March/April 2012 - Colombia’s banking system is enjoying its salad days amid an acquisition frenzy
Latin Finance - March/April 2012 - 64
Latin Finance - March/April 2012 - Cover3
Latin Finance - March/April 2012 - Cover4
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