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Awards for Excellence 2016
Investment bankers in Latin America would love to have discovered some momentum over the last year, but economic activity slowed – almost to a stop in some parts of the region. Deal volumes and the banks’ fee income naturally suffered. Profitability was always challenging in a region notable for thin fees and capable and aggressive local banks, and this awards period saw some international banks break. Deutsche’s high-profile withdrawal followed others’ more stealthy exits.
Citi wins the award for best investment bank in the region as its commitment to countries and products won it a good share of the year’s important deals. Eduardo Cruz, Citi’s corporate and investment banking head of Latin America and Mexico, heads an investment banking team that is based in Mexico, Brazil, Colombia and New York, and covers 23 countries.
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Eduardo Cruz, Citi |
Citi participated in more transactions than any other bank, it lent more to the region than any other bank, it was the leading M&A adviser in announced and completed M&A (deals over $1 billion), and it ranked in the top three in every international and local bond category, according to Dealogic.
Citi also has a strong equity capability, with its local presence strengthening its bid for international mandates. For example, Citi justified its role as lead bookrunner on Nemak’s IPO (the biggest in Mexico since 2013) by bringing in local demand of over Ps6 billion ($317 million), as well as international accounts. Its ability to bring both local and international demand adds pricing tension to the book and demonstrably better outcomes for clients.
Combined with this financing strength, Citi is a strong competitor in advising the region’s governments and companies. In May 2015 Citi closed a deal for Banco BBM in which it sold 80% of the Brazilian bank to China’s Bank of Communications – marking BoCom’s entry into Latin America and its first-ever cross-border acquisition. Citi was exclusive financial adviser to Axtel in its $2.1 billion transformative merger with Alestra that created a big competitor in the Mexican telecommunications industry. Citi also advised GE on the sale of its lending and leasing business in Mexico to Linzor.
