Winner: Banco Santander
The sheer scale of work completed in Brazil over the award review period, coping with the COVID-19 pandemic and involvement in one of the leading deals of the year helped Banco Santander secure its win as the PIF Bank of the Year for Brazil.
As the mandated lead arranger on the $1.1 billion LD Celulose greenfield project, which won both this year’s PIF transaction of the year for Brazil as well as the overall loan of the year award, Banco Santander participated in one of the most significant deals put together.
The transaction, which represented the largest ever by sponsor Lenzing AG for a single project in the company’s history, included an renewable forestry resource management plan and a cogeneration electricity plant that will have the capacity to feed power back into Brazil’s grid. Brazil’s Duratex owns 49% of the project.
Closing the deal in May, with the COVID-19 pandemic raging, was testament to the work involved in getting it closed under perhaps some of the worst conditions in recent history.
Santander’s book of work in Brazil was broad-based, covering a mixture of railways, renewables as well as offerings from state-owned oil company, Petrobras. The win did not come easy as it faced stiff competition from domestic banking powerhouses.
Significant projects that were included the bank’s portfolio over the review period also included the lead coordinator in Petrobras’ 7th debenture issuance. The offer was structured via ICVM 400, in up to 3 series of 7, 10 and 15 years and was done in a shorter execution time with strong demand.
Additionally, Santander was involved in the Folha Large Phase 2 transaction for the Terra Stanta wind power cluster, the Maral wind power cluster as well as Volta Grande debenture issuance.
The Volta Grande deal, at the time of the auction, was 1.27 times oversubscribed. At the time it closed in October 2019, it represented a 42% expansion of Enel Brazil’s generation capacity. Santander acted as the bookrunner in the 1st debenture issuance by Enel Green Power Volva Grande S.A.