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BlackRock aims to turn Brazil into top operation in Latin America

18.03.2019

After nine years, US investment firm BlackRock decided to have a chief executive in Brazil again. Carlos Massaru Takahashi, who has been working as a senior management consultant for BlackRock since 2016, is the new country head. His mission is to expand the Brazilian operation and distribution of products and services to pension funds and […]

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After nine years, US investment firm BlackRock decided to have a chief executive in Brazil again. Carlos Massaru Takahashi, who has been working as a senior management consultant for BlackRock since 2016, is the new country head. His mission is to expand the Brazilian operation and distribution of products and services to pension funds and institutional investors. “The challenge is to make Brazil the main operation of BlackRock in Latin America,” the executive said in an interview with Valor. To reach that goal, the Brazilian branch will have to surpass Peru-Chile (counted as a single market), Colombia and Mexico. While the Brazilian operation has $6.4 billion in assets under management, Mexico’s has about $65 billion, according to market estimates.

Source: Valor International

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Buffett signs up for significant stake in IRB

18.02.2019

Conglomerate Berkshire Hathaway is negotiating to buy part of an 8.9% slice in reinsurer IRB being offered by state-owned bank Caixa Econômica Federal, Valor has learned. Controlled by Warren Buffett, one of the world’s most celebrated investors, Berkshire has insurance assets making up a major part of its operation. Caixa, for its part, hopes to […]

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Conglomerate Berkshire Hathaway is negotiating to buy part of an 8.9% slice in reinsurer IRB being offered by state-owned bank Caixa Econômica Federal, Valor has learned. Controlled by Warren Buffett, one of the world’s most celebrated investors, Berkshire has insurance assets making up a major part of its operation. Caixa, for its part, hopes to raise as much as R$2.5 billion with the IRB stake amid a new plan to divest non-core assets. The offering will be priced on February 26.

Source: Valor International

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Brookfield Bullish on Brazil With Bolsonaro’s Pro-Business Bent

06.02.2019

Brookfield Asset Management Inc., one of the world’s largest alternative asset managers, wants to capitalize on a wave of privatizations in Brazil as the new government of Jair Bolsonaro government moves to bring fiscal discipline to the country. “With meaningful, large positions in many of those sectors already, I think we’re just very well positioned […]

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Brookfield Asset Management Inc., one of the world’s largest alternative asset managers, wants to capitalize on a wave of privatizations in Brazil as the new government of Jair Bolsonaro government moves to bring fiscal discipline to the country.

“With meaningful, large positions in many of those sectors already, I think we’re just very well positioned to look at various tuck-unders and growing our current platforms if new assets come to market,” Sam Pollock, chief executive officer of Brookfield Infrastructure Partners LP, said on a call with investors on Wednesday. “We’re just well-positioned as an incumbent rather than someone who is coming fresh.”

Brookfield’s various subsidiaries, including its infrastructure arm, have been actively investing in Brazil in recent years, including its acquisition, with a group of investors, of a Brazilian natural gas distribution business from Petroleo Brasileiro SA in 2016 for roughly $5.6 billion.

“We expect higher growth rates, lower inflation and interest rates, a stronger currency and more bullish market conditions,” Pollock said earlier in a letter to shareholders. The decline in interest rates has already allowed the company to refinance its gas transmission business after a meaningful decline in interest rates, he said.

Competition Increasing

The change in government is already generating renewed interest in Brazil, he said.

“We are seeing increased competition for high-quality assets, with more investors willing to bid higher values for infrastructure assets, relative to the last few years,” Pollock said. He pointed to a recent auction for an electricity transmission business in December where bids came in 40 percent higher than the value Brookfield ascribed to its investments during the depths of Brazil’s economic downturn.

“This market dynamic reaffirmed our view that these types of assets were trading significantly below intrinsic value a few years ago simply because the country was out of favor,” Pollock said, adding that currency stability will also create a tailwind.

Asset Sales

Brookfield Infrastructure reported $71 million, or 6 cents a unit, of net income for the fourth quarter, in line with last year’s earnings. Its funds from operations grew 4.1 percent over the year to $326 million, or 82 cents a unit, compared to $313 million, or 80 cents a unit. The infrastructure arm also increased its dividend by 7 percent.

Pollock said Brookfield has been very active monetizing its mature assets, including reaching an agreement in January to sell up to a third of its stake in its Chilean toll road business. He said the firm has five other sales processes underway that are expected to generate an additional $1.5 billion to $2 billion in the next 12 to 18 months.

“Going forward, we expect the majority of our growth to be funded by the proceeds from asset sales and cash flows retained in the business,” Pollock said. “This is different than when we started the business 10 years ago. In previous years, we issued equity to fund much of our M&A investments and large-scale capital projects.”

Source: Bloomberg

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Investors optimistic about infrastructure privatization plans

14.01.2019

Strategic and financial investors from Brazil and abroad started the year mobilized around the agenda of infrastructure privatizations in the country. It is hard not to think that this may be the repetition of the same story heard in the recent past about a long investment cycle to eliminate bottlenecks in the segment, but that […]

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Strategic and financial investors from Brazil and abroad started the year mobilized around the agenda of infrastructure privatizations in the country. It is hard not to think that this may be the repetition of the same story heard in the recent past about a long investment cycle to eliminate bottlenecks in the segment, but that ended up frustrating expectations. However, investors want to believe that this time may be different. Now, they say, the last government has left a list of projects ready to be executed. On top of that, the Jair Bolsonaro government has brought a new boost, since the president and his team have promised to extend the privatization of services like airports, highways and railways. Macroeconomic conditions are also more favorable than in the past, and Operation Car Wash has eliminated tricks that favored builders in the bids.

“Since the election’s second round, and especially in the government’s first weeks, we have received many calls from customers interested in infrastructure auctions,” says Daniel O’Czerny, Citi’s projects and infrastructure director. Facing the demand, the bank plans to carry out roadshows to European investors and explain the projects to be tendered.

The same interest is confirmed by Gustavo Lopes, partner for infrastructure at consultancy Roland Berger. He says foreign investors have started to make a move shortly before the presidential election, when the outlook became clear.

“I am very confident that we have a good moment for infrastructure investments in the country,” says Otavio Castello Branco, a partner at Pátria Investimentos, an asset manager with a big focus on the segment. “From the macroeconomic point of view, we rarely had such low interest rates and inflation, and a solid foreign exchange. In addition, the capital market is willing to finance the projects,” he says, citing the government cabinet as something positive. Recently, Entrevias, a highway concessionaire controlled by Pátria, financed the company’s entire capital requirement through infrastructure bonds.

Mr. Castello Branco confirms the asset manager’s interest in highways, power transmission lines and generation, all segments in which it already has invested. Sources say Pátria would be in talks with a strategic partner to join the next round of airport auctions, scheduled for March, and one of the names cited is that of German airport operator Avialliance. Mr. Castello Branco declined to comment.

Pátria now has 14 infrastructure companies in its portfolios and 60 people working in the segment. Currently, its investments are made through its third infrastructure fund, which has $1.7 billion raised mainly with foreign investors, and has already invested in eight projects. Mr. Castello Branco says that for now there is no need to set up a new fund.

Vinci Partners is another local asset manager already dedicated to infrastructure projects, and will now double its bet on the sector. “We will grow our team as opportunities materialize. We have already identified potential teams to work within companies,” says Alessandro Horta, a partner at Vinci.

To gain agility for the various opportunities that will appear, the asset manager has decided to create specific vehicles according to projects instead of setting up a multisectoral fund. One of them is being structured to bid in the next round of airport auctions. Vinci Partners would be in talks to form a consortium with France’s Aéroports de Paris, or ADP. Mr. Horta does not confirm the information. In the case of power transmission auctions, the asset manager has set up a vehicle in which investors pledged to inject R$300 million to R$400 million with a mandate to participate in several rounds.

Mr. Horta says that, in addition to airports and transmission lines, Vinci Partners is also interested in power generation and sanitation companies. “These are the segments in which we put a bigger focus,” he says, without ruling out other sectors, such as highways.

Mr. O’Czerny, of Citi, estimates that at least seven to ten groups are eyeing the auction of 12 airports, divided into three blocks. The bank advises one of them. “It will be a mix of financial and strategic investors.”

Hans Lin, investment bank chief at Bank of America, says it will be a game more between airport operators rather than financial investors. “In the latest round, operators had already taken the lots alone, and did not need third-party capital,” he says.

Other names of airport operators interested in the bid, in addition to ADP and Avialliance, would be Switzerland’s Zurich, which operates with CCR Confins airport (Minas Gerais); France’s Vinci, which operates Salvador’s airport, Germany’s Fraport (Fortaleza and Porto Alegre airports); France’s Egis, a minority shareholder in the group that runs Viracopos (Campinas); and Argentina’s Corporación América, which is already operating the Natal and Brasília airports. Spain’s Aena, which is not yet in Brazil, is also among the potential bidders. Singapore’s Changi, who runs the Galeão airport, in Rio de Janeiro, says it is considering its participation in the round. Among Brazilian groups, other investors would be CCR and Socicam, which already runs regional airports such as Caldas Novas (Goiás).

The most attractive block is that of Northeast, whose main asset is the Recife airport (Pernambuco). The most uncertain is that of the Central-West, which has a low passenger flow and will require higher investments.

For Bruno Aurélio, infrastructure and regulatory partner at law firm Tauil & Chequer Advogados, the existence of several airports in the same block will demand from interested parties higher investments to know the problems of each terminal.

“As there is obligation to pay the grant in cash, premiums should not be so relevant,” he says. The icing on the cake will be the bidding of blocks including Santos Dumont, in Rio, and Congonhas, in São Paulo, which the Bolsonaro government has already signaled interest in carrying out, but no date has been set yet. “Many operators will already try to position themselves in the local market with smaller assets waiting for these two airports,” Mr. O’Czerny says.

March promises to be busy, with two other auctions besides that of airports. Together, the three auctions should bring in investments of more than R$6 billion over the concession periods. The season begins with an auction of airports on March 15. Then, on March 22, the government will offer four fuel-port terminals (on April 5 there will be another six terminals). Then, on March 28, there is the bid of 1,537 kilometers from the North-South Railway.

Port terminals will be auctioned at a time when the country is increasingly dependent on imported fuels. As a result, David Goldberg, partner at consultancy Terrafirma, sees fuel distributors as potential bidders, such as Ultracargo, Raízen, Oiltanking, BR Distribuidora, Ageo and Cattalini, as well as Argentine and Chinese investors.

In the case of the North-South Railway, VLI Logística and Rumo Logística are the most likely bidders since the stretch to be auctioned is in the middle of their networks under concession. The railroad’s northern section ends in VLI’s network and the southern section, in Rumo’s.

Despite being a huge investment, both are considered fully able to raise funds. VLI has among its shareholders Canadian investment company Brookfield, which invests in infrastructure, as well as Vale, Mitsui and FI-FGTS, the investment arm of the Workers’ Severance Fund (FGTS). It is not ruled out that the two could join forces to buy the asset. VLI has a competitive advantage, since the stretch’s North wing is ready, and therefore would generate instant synergy with the company’s network. As for the section to be finished, it is in the area that ends in Rumo’s network.

Mr. Goldberg, with Terrafirma, estimates that the investment required in the North-South is below what is needed, and the volumes of general cargo are, in turn, overestimated. “If the figures translated the reality, the minimum grant would have to fall by a few hundred million. It remains to be seen if the groups’ strategic interest in buying the railroad will overcome these difficulties,” he says.

Bankers, lawyers and consultants are also working for large institutional investors interested in the various assets to be tendered, especially airports, highways and energy. Among them are Canadian pension funds and sovereign funds from Asia and the Middle East. Chinese builders would be eyeing highways.

Mr. O’Czerny, of Citi, estimates that while the projects mapped by the government are good and timely, they are not enough to secure a long infrastructure-investment cycle. “The program left by the [Michel] Temer government, the PPI [Investment Partnerships Program], is good, but it’s short. It goes until 2022, but most projects run out in 2019 and 2020,” he says. “The challenge now is for the government to create a new pipeline.”

In his opinion, the new government got off to a good start in creating the Ministry of Infrastructure. “It will be important to consolidate areas that were scattered throughout municipalities and ministries, which made everything slower. The single ministry can become an assembly line of projects,” he says.

Mr. Castello Branco, with Pátria, agrees with the need to renew the list of projects to feed future auctions, but says there already has been a lot of progress. “The highway pipeline is already very large, in railways there are three to four large projects identified,” he says.

Mr. Castello Branco, as well as other industry players, welcomed the appointment of Tarcísio Gomes de Freitas as Infrastructure minister. “It meant the continuity of something that was working,” he says, referring to the fact that Mr. Freitas was in charge of auctions and concessions under the Temer government.

There is also expectation that the Bolsonaro government will strengthen regulatory agencies, which would increase predictability of investor rules, reducing project risks.

Mr. Castello Branco says that if it were to mention a single measure that would further leverage foreign investment in infrastructure, it would be the country joining the Organisation for Economic Cooperation and Development (OECD). “Many foreign pension funds don’t invest in Brazil because the country is not a an OECD member.”

Mr. Horta, with Vinci Partners, estimates that one of the most important measures would be for the government to create a mechanism to mitigate the currency risk of foreign investors, something that the new president has already said he wants to do. “If this happens, the sky will be the limit for the inflow of foreign funds,” he says.

Source: Valor International

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Morgan Stanley says “overweight” Brazil is biggest hope in emerging market

04.12.2018

Brazil is the emerging market darling of Morgan Stanley’s head of Latin America operations and global head of capital markets. John Moore told Valor that “among emerging markets, there is no other market for which we have such high hopes as Brazil.” The investment bank just boosted Brazil to “overweight,” saying in a note that […]

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Brazil is the emerging market darling of Morgan Stanley’s head of Latin America operations and global head of capital markets. John Moore told Valor that “among emerging markets, there is no other market for which we have such high hopes as Brazil.” The investment bank just boosted Brazil to “overweight,” saying in a note that its stock market should provide a 21% return next year in dollar terms. Complicated political situations in Mexico and Argentina should favor Brazil when investors look to the Latin American region for opportunities, Mr. Moore says.

Source: Valor International

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U.A.E. Dangles Billions of Dollars Before Brazil, With One Catch

26.11.2018

The United Arab Emirates is willing to expand its multi-billion dollar investments in Brazil as long as it’s no longer labeled a tax haven by Latin America’s largest economy. The U.A.E. Ambassador to Brazil, Hafsa Abdulla Al Ulama, said her country’s sovereign wealth funds are ready to boost investments in infrastructure, energy and agriculture should […]

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The United Arab Emirates is willing to expand its multi-billion dollar investments in Brazil as long as it’s no longer labeled a tax haven by Latin America’s largest economy.

The U.A.E. Ambassador to Brazil, Hafsa Abdulla Al Ulama, said her country’s sovereign wealth funds are ready to boost investments in infrastructure, energy and agriculture should the nation be removed from the list.

“Our sovereign funds would like to see that there are incentives for people to come and invest”, she said in an interview in Brazil’s capital city, Brasilia. “Singapore and Switzerland have been removed from the tax haven list. Why not U.A.E.?”

In addition to having to deal with Brazil’s notorious red tape, countries considered as tax havens are also subject to higher levies and stricter compliance rules. The U.A.E. fund Mubadala, while not the country’s largest, already manages $2 billion in Brazil, including investments in ports and telecommunications. Brazil’s outgoing Foreign Minister Aloysio Nunes Ferreira told Bloomberg the tax haven list discussion with the U.A.E. is “very close” to being resolved.

Mubadala employs over 40 people in its Rio de Janeiro office. “Concessions, privatizations, we are ready to look at all of these,” Al Ulama said, adding she expects to meet soon with Brazil’s future Economy Minister Paulo Guedes. She met with President-elect Jair Bolsonaro days after his election victory on Oct. 28.

Following decades of consumer-driven growth, Brazilian policy makers are now looking to investments to help kick-start the economy after its worst recession on record. Both Bolsonaro and Guedes have also indicated willingness to sell off state-owned assets under the new administration.

Al Ulama’s comments come as Bolsonaro mulls a shift in Brazil’s foreign policy, including much closer ties with the U.S. and a possible transfer of the Brazilian Embassy in Israel from Tel Aviv to Jerusalem.

Bilateral trade between Brazil and the U.A.E. jumped to $2.7 billion in 2017 from $1.8 billion in 2009.

Source: Bloomberg

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Brookfield Is Ready to Double Down on Brazil Under Bolsonaro

31.10.2018

Brookfield Asset Management Inc. is pretty pleased with the political shift in Latin America’s largest economy, underscoring the potential for a Brazilian private equity boom under the right-wing administration of Jair Bolsonaro. The Toronto-based alternative asset manager has a lot on the line in Brazil. It has been investing in the country for more than […]

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Brookfield Asset Management Inc. is pretty pleased with the political shift in Latin America’s largest economy, underscoring the potential for a Brazilian private equity boom under the right-wing administration of Jair Bolsonaro.

The Toronto-based alternative asset manager has a lot on the line in Brazil. It has been investing in the country for more than 100 years and expanded when the recent recession prompted cash-strapped companies including Petroleo Brasileiro SA to sell assets. It has $42 billion in assets under management in Brazil, according to its website.

Those investments have become more valuable with the Brazil currency rallying ahead of Bolsonaro’s victory on Oct. 28, and the improved business climate will lure other potential buyers, Sachin Shah, the chief executive officer for Brookfield’s renewables division, said in a conference call.

“That’s net-net-net positive to our existing assets in the marketplace and I think generally net positive for investment flows in the country,” Shah said. “I think you will see more asset sales in the country, in particular in the power sector as the country needs the capital.”

Source: Bloomberg

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Brazil Bets on Tiny Apartments, With Airbnb in Mind

11.09.2018

Sao Paulo is about to learn if the kinds of tiny apartments that are common in New York and other financial centers can work for Brazilians. Los Angeles-based real estate investor Paladin Realty is betting that new zoning rules in the city will help it sell small apartments — not only for residential purposes, but […]

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Sao Paulo is about to learn if the kinds of tiny apartments that are common in New York and other financial centers can work for Brazilians.

Los Angeles-based real estate investor Paladin Realty is betting that new zoning rules in the city will help it sell small apartments — not only for residential purposes, but also for investors interested in a source of income from short-term rentals in online communities such as Airbnb Inc.

The megacity with more than 20 million inhabitants has new rules to allow buildings near public transportation hubs to have both residential and commercial units, including short-term rentals, hotels, hospitals and storefronts.

Among the first projects backed by Paladin is a building in the middle-class neighborhood of Perdizes with 240-square-foot apartments, which are priced 20 percent above the average for the region. The 62 short-term rental studios sold out in the first weekend they went on the market, back in June.

YouInc, the Sao Paulo-based builder and developer in charge of the Perdizes project, says the addition of commercial usage in residential buildings — from the city’s new so-called “master plan” — has made a difference. Focusing on selling high-end apartments to young professionals has also allowed the company to maintain a net return above 20 percent despite the recession and the sluggish real estate market.

New Plan

“We were the first ones to approve projects following the new master plan,” YouInc Chief Operating Officer Eduardo Muszkat said in an interview. YouInc and Paladin are working on two new residential projects. One of them, in the Pinheiros neighborhood, will include medical clinics. Paladin has $5 billion under management, with half of its assets in Brazil.

The new zoning rules and the possibility of a new short-term rental category are good news for companies like Airbnb. While the online community marketplace for travelers has struggled in cities around the world that are implementing tougher rules, it’s flourishing in Brazil, where it saw the number of guest arrivals double in 2017 to 2.2 million. Airbnb had 167,000 ads in Brazil in Dec. 2017, 14,000 of which in Sao Paulo. The company declined to comment further for this story.

Sao Paulo needs the investment. Real estate sales are beginning to inch back up, but they’re still recovering the country’s deepest recession ever. This year, economists expect timid growth of 1 percent. There’s also a wide-open presidential election next month that has everyone on edge.

With all the instability in Brazil, Paladin is hoping that offering projects with specific purposes will help it increase visibility and mitigate insecurities, according to Ricardo Raoul, managing director for the country.

“We believe specific projects are easier to visualize than real-estate funds,” Raoul said. “Funds are like blank checks.”

Source: Bloomberg

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Vinci to invest R$250m to expand Domino’s Pizza chain in Brazil

10.09.2018

The strategy of asset manager Vinci Partners for pizza-delivery chain Domino’s in Brazil is likely to follow some steps of Burger King, in which Vinci is also a shareholder. The planned measures include the immediate increase in the brand’s exposure in São Paulo media and launching its own stores in areas with high foot traffic, […]

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The strategy of asset manager Vinci Partners for pizza-delivery chain Domino’s in Brazil is likely to follow some steps of Burger King, in which Vinci is also a shareholder. The planned measures include the immediate increase in the brand’s exposure in São Paulo media and launching its own stores in areas with high foot traffic, Valor has learned. Vinci completed last week the takeover of Domino’s Pizza in the country, until now in the hands of Grupo Trigo, for R$250 million, a source familiar with the deal says. The project already approved for Brazil estimates the opening of 500 units in five years, with a total investment of R$250 million.

Source: Valor International

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Investment banks have best start to a year in Brazil since 2013

03.07.2018

Investment banks had the best start to a year in Brazil since 2013. Their combined revenue in the first half totaled $485 million, a 36.2% year-over-year growth, according to a survey by consultancy Dealogic. Performance is even better in reais, as the dollar strengthened on average 7.7% against the Brazilian currency in the period. “It […]

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Investment banks had the best start to a year in Brazil since 2013. Their combined revenue in the first half totaled $485 million, a 36.2% year-over-year growth, according to a survey by consultancy Dealogic.

Performance is even better in reais, as the dollar strengthened on average 7.7% against the Brazilian currency in the period. “It was a very different first half from last year’s, with fewer stock and acquisition transactions, but of larger volumes,” says Alberto Fernandes, vice president at Itaú BBA.

Foreign banks have retaken a role they had not had for at least five years. They grabbed 63% of the fees compared with last year’s 43%, considering the volume of the ten-largest institutions in the ranking. Goldman Sachs, Morgan Stanley and Bank of America Merrill Lynch, of the US, ranked first, second and fourth in the January-June revenue ranking.

It is the first time that Goldman Sachs takes on the lead in Brazil in the period, according to Dealogic, driven by its performance in equities. The segment accounted for most of the banks’ fees for the second year in a row. Goldman Sachs participated in the largest stock sales of Brazilian companies in the period, coordinating two share offerings of PagSeguro, payment processor that was listed on the New York Stock Exchange and made a follow-on offering in June. On the Brazilian stock market, Goldman was in the group of banks coordinating this year’s largest stock offering so far, of healthcare operator Hapvida.

“Healthcare companies and fintechs are looking for a more global, specialized investor, who wants opportunity in a sector regardless of their country of origin. In such cases, global banks participate more,” says Antonio Pereira, head of investment banking at Goldman Sachs in Brazil. “In the case of PagSeguro, for example, a lot of investors who joined the offering are not accustomed to looking at Brazilian companies.”

Goldman has been boosting its investment banking team in Brazil. In March, it hired Ricardo Bellissi, who headed mergers and acquisitions and investment banking at Santander. Last year, Goldman hired Marcelo Naigeborin, former co-director of investment banking at Morgan Stanley in Latin America, for “special situations,” and an ex-partner at BTG Pactual, Fabio Federici, as vice president for equities.

Morgan Stanley also coordinated the two PagSeguro’s offerings and participated in the stock issues of NotreDame Intermédica and Banco Inter. In addition to the consolidated ranking, foreign banks also accounted for the lion’s share of fees in the lending segment, led by France’s BNP Paribas and Japan’s Mizuho and Sumitomo Mitsui.

For financial-service providers’ executives, the transaction volume and the Brazilian context at the end of last year heated up capital market competition, including with foreigners. “Competition has increased because Brazil has shown signs that the economy was going in a better direction than it went, combined with a low interest rate, which makes it cheaper to finance companies in the capital market,” Mr. Fernandes, with Itaú BBA, says.

Itaú BBA was the Brazilian bank with the best consolidated performance in the period. The bank led merger and acquisition deals, was the Brazilian lender with the largest volume of shares issued and loans, and the second in debt issuance, after Banco do Brasil.

Unlike the stock market and M&A, the debt market was also busy in number of transactions. BB alone participated in 9 of the 14 issues abroad in the period, totaling $11 billion, and in the domestic market there were almost 50 issues totaling R$30 billion, compared with 20 issues in the same period of 2017.

“We saw a large liquidity in the international market, concentrated between January and April, and it was very good for companies to advance funding. The same happened in the domestic market, with higher participation of institutional investors,” says Fernanda Arraes, executive manager for capital markets at BB. “The rise in the US interest rate and uncertainties of the trade war between China and the United States have changed the scenario, affecting more than the electoral year’s volatility.”

BB has 30 debt-issuance mandates for the second half. But overall, banks expect a slowdown in capital markets in the third quarter. “In the second half, M&A is likely to be the main activity of investment banks,” says Mr. Fernandes.

There are a number of ongoing operations that can be completed by the end of the year, such as a partnership between Boeing and Embraer, the purchase of a stake in petrochemical group Braskem by Dutch company LyondellBasell, and sales of assets of both state-owned Petrobras and food company BRF — banks do not comment specifically on any of them. They argue that, after the elections, the pace is poised to accelerate. “We are optimistic, looking at 2019 and 2020,” Goldman’s Mr. Pereira says.

Source: Valor International

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