Despite a broadly underperforming market, JP Morgan bankers found themselves exceptionally busy in 2024. The bank ended up leading many of the most important deals closed in the period, across a variety of sectors and different jurisdictions.
It led a $2 billion bond issue by Codelco and the $600 million liability management transaction performed by Enap, two of the top Chilean issuers; the $8.3 billion refinancing deal by Mexico’s Pemex; the $800 million bond issued by Argentina’s YPF and the issuance of the bond that concluded the $9.7 billion debt restructuring by Samarco in Brazil.
Equity deals were hard to come by during the awards period, but JP Morgan managed to participate on both the $677 million IPO of BBB Foods in Mexico and the $2.7 billion follow-on that brough the privatization of Sabesp in Brazil to a close. It was also a participant in award-winning issuances by the sovereigns of Mexico and Peru and the innovative $467 million credit facility provided by the US DFC to Brazil’s Stone Co in a deal designed to provide credit to SMEs.
Net revenues from JP Morgan’s investment banking activities in Latin America increased 69% in the year to September 30, reaching $146 million, according to Dealogic. It was a strong enough performance to guarantee the top spot in regional league tables.
The rankings also place JP Morgan near the top in Latin America for M&A deals, the second for equities and loans, and a top five debt market player, in terms of net revenues, according to Dealogic. The US-headquartered firm also earned itself a series of individual market awards in this year’s awards, carrying the Chile, Colombia and Central America categories.
It should come as a surprise to no one, then, that JP Morgan is LatinFinance’s Investment Bank of the Year for the whole region in 2024.
It could well be the case that the JP Morgan’s investment banking team will be even busier in 2025.
“The market is improving but still has a ways to go, and we are optimistic on 2025,” says Marina Linhart, the head of Latin America Advisory at J.P. Morgan.
She notes that, by December, Latin America’s wallet was up 11% on an yearly basis, although it is also true that the market was coming off a 20-year low in 2023, the lowest wallet since 2004. As a result, levels were still below the 5-year average.
Furthermore, Linhart stresses that Mexico and Brazil, two key markets in the region, have operated below full potential in the course of the year.
“M&A and ECM wallets were down, 8% and 26% respectively, while DCM activity was up materially at 58%,” she says. “ECM activity has been a challenge for the region for several years now and 2024 was no exception. In DCM there as a lot of refinancing and maturity management underway in 2024, which should put companies in a stronger position for M&A activity in 2025.”
Linhart points out that higher interest rates and a weaker currency in Brazil may continue to keep the market subdued, but other jurisdictions could provide interesting opportunities in 2025.
“We are optimistic that activity from Mexico is already starting to pick up for early 2025,” she says.
“Argentina has been a big turnaround story in 2024, laying the groundwork for what could be a very active 2025 as many players see a window opening for exits. Client dialogue in Colombia, Chile, and Peru also remains active.”