DEALS OF THE YEAR RESULTS
Participants in last year’s capital markets bungee jump will remember it forever. In Latin America, the key lesson learned is that the bigger, more investor-friendly economies can take external shock on the chin.
BEST FOLLOW-ON EQUITY ISSUE
A 5.3 billion real equity follow-on from Brasil Foods (BRF) was the standout in 2009 for a combination of disciplined execution in choppy times and its participation in the creation of the world’s second largest animal protein exporter.
BEST RESTRUCTURING: Cemex Admits Mistakes
Cemex is back from the brink of disaster. After a laudable $15 billion restructure, many wonder how the fallen blue chip ever got itself into such a twist.
BEST CROSS-BORDER M&A DEAL
Brazil’s Companhia Siderúrgica Nacional (CSN) sold in October 2008 a 40% stake of iron ore unit Namisa to a consortium of Japanese and Korean companies when iron ore prices were sliding, as were practically all other commodities amid the global financial slump.
BEST CORPORATE ISSUER: Bimbo Bakes Up a Storm
Bimbo, the largest bread and confectionary producer in the hemisphere, seized the opportunity to expand in the US. It is cutting leverage, but has an eye on further expansion.
BEST DOMESTIC M&A TRANSACTION
The merger of Itaú and Unibanco created Brazil’s largest bank by equity, assets and loan portfolio, and the eleventh largest in the world by market cap.
BEST INVESTMENT BANK
Recuperating markets played to the strengths of JPMorgan, globally one of the few banks to emerge stronger from crisis. The shift to high yield presents a challenge.
BEST PROJECT FINANCE DEAL
Securing $1.34 billion in 10-year money through a quasi-syndication in a year when even high quality five-year projects in Chile struggle is a major feat.
BEST M&A HOUSE
When the global economy plummeted, investment banks withered and company valuations dropped, Credit Suisse braved the storm, proving its ability to get deals done in the worst of conditions.
BEST STRUCTURED FINANCING
When regulators stepped in to set guidelines for quasi-equity structures sold in Mexico’s domestic bond market, a new asset class was born.
BEST LOAN HOUSE
Santander has demonstrated in the past 14 months that it has what it takes to weather a downturn and remain an active lender.
BEST TRADE FINANCE DEAL
In a tough year for trade finance, leading borrower América Móvil proved that diversification to the east is not just for rogue governments strapped for cash.
BEST CORPORATE BOND
In April, Telemar struck with the first benchmark-sized bond from a non quasi-sovereign LatAm corporate.
BEST SOVEREIGN ISSUER
Brazil brought the first sovereign bond of 2009 – on the same day as Colombia – though credit for reopening emerging markets goes to Mexico’s daring 2019 three weeks before in mid-December.
BEST SOVEREIGN BOND
In a dazzling display of all it has achieved this decade, Mexico cracked open international bond markets for EM issuers just before Christmas 2008 with a tightly priced $2 billion 10-year benchmark that took out much of 2009 funding needs.
BEST QUASI SOVEREIGN BOND
It had been two years since a non-sovereign entity has issued bonds from Colombia, a country whose economic and security improvements landed it near the top of many EM investor wish lists.
BEST FINANCIAL INSTITUTION BOND
The region’s financial institutions were latecomers to the new issue party during the market recovery. Eventually the demand was too good to resist, and institutions began to load up on subordinated capital.
BEST CORPORATE LIABILITY MANAGEMENT
For much of last year, CFO and finance ministry agendas were dominated by efforts to survive the credit crunch, and, as debt markets reopened in the second half, address immediate funding needs.
BEST SOVEREIGN LIABILITY MANAGEMENT
A mid severe volatility, liability management was not at the front of most issuers’ minds last year. In the sovereign space, the region’s largest and most market-ready issuers were not in great need, and the market was tricky for most others.
BEST LOCAL CURRENCY FINANCING
Mexican telecom giant América Móvil’s successful UF4.0 million ($145 million) April bond issue in Chile opens the gates to other LatAm companies seeking to raise funds in new markets.
BEST PRIMARY EQUITY ISSUE
Ask a banker what he or she thinks makes an IPO a great deal and you are bound to hear an array of arguments including exaltations of the issuer’s “story,” the size of the book, benefits to selling shareholders, and an aftermarket pop.
BEST PRIVATE EQUITY DEAL
In May 2009, private equity shop Advent International, which has more than $6 billion in assets under management, snapped up about 30% of Brazil securities clearinghouse Cetip-Balcão Organizado de Ativos e Derivativos for 360 million reais with funds from its LatAm PE fund, which is capitalized at $1.3 billion.