Citi led 27 loan transactions across nine different countries in Latin America and the Caribbean, lending more than $7.7 billion in the period. It arranged loans in multiple currencies, including the Brazilian real, the Mexican peso, the Peruvian sol and the Trinidad & Tobago dollar.
The bank, which wins Loan House of the Year, also increased its lead in the loan markets league tables in Latin America. It ended the 12 months to September 30 with $37 million in net revenue from loan deals, up from $8 million in the comparable period a year earlier. As a result, its market share shot from 14% to 27%.
Nicolas Bendersky, the head of Loan Syndication & Acquisition Finance Latam at Citi, notes that the bank’s performance was driven by stronger loan activity across the region, particularly in infrastructure and acquisition financing, areas where the bank focuses its efforts.
“Activity was very busy in all markets,” he says. “Mexico was a bit slow at the beginning of the year due to the elections. But in the end, Mexico was by far the top market in terms of the number of deals.”
At the beginning of the year, the market carried over the strong finish of 2023, when an expected decline in interest rates made companies more open to looking for different financing opportunities. That trend was maintained for the duration of 2024, Bendersky points out.
He says that in the Central America and Caribbean, capital raising for M&As was an important driver of activity, as local companies have strived to diversify their businesses away from their home markets. Infrastructure finance led to deals in the Andes, Brazil and, to a lesser extent, in Mexico. At the same, he notes that competition has become more fierce in the region as multilateral agencies and local banks are making a push to underwrite more deals.
“They are creating for competition for us, which is great. We like competition,” he points out.
Bendersky expects to see more project finance and infrastructure financing in 2025, with the possible recovery of activity levels in Mexico as a positive perspective. He also reckons Argentina could make a comeback for the loan market.
“The new theme in the loan market is Argentina,” Bendersky says. “It has always been a difficult market for banks, but we are seeing the bond market much more active in Argentina, and if the trend continues, the next step is to see bank activity there too.”
If that is the case, project financing, especially in sectors like mining and oil and gas, is the most likely source of loan deals from the Pampas. But he acknowledges that Argentina’s return to the fold still remains an open question.
Economic activity is the main driver of loan activity, as companies turn to banks in order to finance investments or acquisitions. As such, Bendersky does not see interest rate and currency volatility undermining loan activity in 2025, especially because the loan market is to a large extent driven by relationships.