DCM got off to a fast start in 2011, with investors appearing to get their wish for more diverse and higher yielding offers.
Demand for agricultural commodities is rising fast, propelling Argentine producers. However, they require significant investment to fully tap the country’s potential.
A hearty new equity issuance pipeline is building in LatAm, though, as at the beginning of 2010, friction between buyers and sellers threatened to poison the punch.
Praised for a speedy earthquake response, Chile again leads the LatAm finance ministry pack. Capital controls hurt Brazil, while Argentina finally draws some praise.
In the year through February 23, a total of 212 M&A deals worth $18.7 billion was reported, according to Dealogic.
Chilean retailers have unveiled aggressive expansion plans for 2011. Bottom line growth and stock performance are not expected to hit last year’s heady pace.
The financial benefits to Costa Rica of diplomatic ties with China may spur others in Central America to follow. Those recognizing Taiwan still get Chinese energy dollars.
Despite central bank intervention that pushed local rates higher, Chile’s local corporate debt market should remain active. Bankers expect similar volume to 2010.
Asian wealth managers are looking to raise equity exposure while diversifying bond investment in LatAm. The opportunities will continue to grow alongside trade.
Apax Partners last year announced its first deal in Brazil and is actively building a pipeline in LatAm. More European private equity firms are following its lead.