Braskem’s 2010 acquisition of Quattor Participacoes, Polibutenos and Unipar Comercial forges a new petrochemical giant in the Brazilian petrochemicals market.
Category: Corporate & Sovereign Strategy
Posted inMagazine
PEOPLE: BoTM Beefs Up
Bank of Tokyo-Mitsubishi UFJ has named David Gruppo head of LatAm corporate and investment banking, a newly created position.
Posted inMagazine
BEST PROJECT FINANCING
In just three months of extremely choppy external markets, Project Jaguar scored a coup.
Posted inMagazine
BEST INVESTMENT BANK
Credit Suisse is back on top again, aiming to leverage relationships throughout emerging markets to further stoke the coals of its LatAm investment banking engine. The Swiss house coasts on rising revenue from M&A, equity and fixed income, but has not slipped into complacency.
Posted inMagazine
BEST STRUCTURED FINANCING/INNOVATION
The State of Mexico (Edomex) in August issued a much anticipated 4.1 billion peso 20-year local bond, the first securitization of future flows of income from residential property fees from a Mexican state.
Posted inDaily Brief
Santander Brasil Names Portela CEO
Santander Brasil has named Marcial Angel Portela Alvarez CEO, replacing outgoing CEO Fabio Barbosa, according to the company. Barbosa will become chairman of the board of directors of Santander Brasil, contingent on approval of the shareholders’ general meeting. Barbosa will continue to work on corporate governance issues. Portela is currently a general officer of Santander Spain with direct responsibility over Brazilian operations.
Posted inDaily Brief
Argentina Reopens Debt Swap
The government of Argentina has announced that it will reopen a debt swap, exchanging 2033 discount bonds, global 2017 bonds and GDP warrants for around $6bn in defaulted debt. In June, creditors agreed to exchange roughly $12.1bn in defaulted bonds, or 66% of the $18.3bn Argentina had been targeting. In that deal, investors were offered a discount option, which included discounts due 2033, new 8.75% of 2017 globals and GDP-linked securities. The discounts pay 8.28% in dollars, 7.82% in euros and 5.83% in pesos. Investors were also offered a par option, which consisted of pars due 2038, a cash payment and the GDP-linked unit. Dollar pars pay 2.50% from September 30 to March 31 2019, 3.75% from the latter date until end-March 2029, and 5.25% to maturity. Euro pars pay 2.26% from September 30 to March 31 2019, 3.38% from the latter date until end-March 2029, and 4.74% to maturity. Peso pars, which are adjusted for inflation depending on the CER, pay 1.18% from September 30 to March 31 2019, 1.77% from the latter date until end-March 2029, and 2.48% to maturity. The offer closes on December 30. Argentina had defaulted on about $95bn in debt in 2001.
Posted inDaily Brief
Interbank Appoints Castellanos CEO
Interbank has appointed Luis Felipe Castellanos CEO, replacing interim CEO Carlos Rodriguez-Pastor. Castellanos will assume his new role at Interbank, a subsidiary of Intergroup Financial Services, January 1. Castellanos has served in various senior positions at Interbank since joining the Peruvian bank in 2006, including CEO of Interfondos, Interbank’s asset management division, and head of the mortgages and real estate divisions. Prior to joining Interbank, Castellanos was an investment banking executive director at Citigroup.
Posted inDaily Brief
Brazil Regulator Bans Ex-Sadia CFO
Sadia’s former CFO Adriano Ferreira was barred by the Brazilian CVM regulator from managing public companies for 3 years, and 9 board members were fined a total of BRL2.6m following an investigation into 2008 derivative losses, the CVM says. Sadia, which merged in 2009 with longtime competitor Perdigao to form Brasil Foods, racked up more than BRL2.5bn in derivative losses as the BRL sank following the collapse of Lehman at the start of the global credit crisis. The CVM found that Ferreira used derivatives in ways inconsistent with company policy, and the former board members were punished for not having a system in place to avoid such irregularities. The company fired Ferreira in September 2008. The former Sadia executive and board members can appeal CVM’s decision.
Posted inDaily Brief
Mexico Expands IMF FCL Access
Mexico is replacing a $47bn 1-year precautionary flexible credit line (FCL) arrangement from the IMF with a $73bn 2-year line, according to the fund. The sovereign is not expected to draw on the line, which is cheap insurance that should boost the MXP, says Goldman Sachs. “If the country ends up drawing funds the current effective interest rate under the FCL ranges between 2.1%-2.7% for access between 500% and 1,000% of quota [$32.5bn-$47bn], rising to about 3.4% after three years of use (plus a 50bp flat service charge),” it adds. “Longer duration and higher access available under the reformed FCL can play an important role in continuing to support Mexico’s policy strategy and in maintaining external confidence,” says IMF MD Dominique Strauss-Kahn. He adds that Mexico has strong policy frameworks, including inflation targeting, a flexible exchange rate regime and a balanced budget rule. “While Mexico was significantly affected by the global financial crisis, the authorities responded resolutely and effectively, and a recovery is now underway,” says the official. The FCL was established on March 2009 for countries with very strong fundamentals, policies, and track records of policy implementation. In August, it was amended to allow a 2-year deal at a higher amount. The repayment period is 3-5 years. Mexico’s first FCL was approved in April 2009 and renewed in March. Poland and Colombia have also established precautionary arrangements under the FCL.