Awards for Excellence 2016
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The theme in Latin American investment banking has been rationalization over the past 12 months. In particular, this has created difficulties for those spreading the good word about HSBC in Latin America in recent years. It might surprise those outside the region, therefore, that HSBC wins the award for best bank for financing in Latin America.
The sale of its business in Brazil and rumours of leaving Mexico created the impression that the bank is not totally committed to the region. Do not say that to Katia Bouazza, head of Latin America global banking financing at HSBC. She and her colleagues are responsible for building the bank into a powerhouse in the region. HSBC has opened markets for currencies and products, driven advances in liability management and stormed the international DCM league tables.
The bank has latterly turned its attention to equities, recognizing the need to be able to cover the whole range of corporate financing options. It wisely focused these resources on Mexico – the only market to see decently sized fresh equity issued in the past couple of years.
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Katia Bouazza, HSBC |
HSBC is the market leader in debt. The bank was lead on four of the region’s top 10 largest deals and raised debt for regional issuers. The popularity of euro-denominated issues in the region was a natural advantage for the bank and it raised $10.8 billion equivalent – more than twice that of its nearest competitor. These deals took in all types of issuers – sovereigns, quasi-sovereigns and corporates – and tenors, including a euro-denominated century bond for Mexico. HSBC also performed strongly in the loan market, providing balance-sheet commitment to companies in Colombia, Mexico, Brazil and Chile, as well as delivering on syndicated loans and project finance, such as the $3 billion revolving credit facility for the new Mexico City Airport.
Equity is traditionally HSBC’s weakest area, but this disadvantage was nullified by the market in the last year, with equity issuance volumes severely depressed. However, HSBC’s ability to grow its ECM business will be crucial if the bank is to retain its market lead in financing when stronger equity markets return. It has now got a solid base. HSBC was second in Mexico last year and was a bookrunner on Nemak’s $760 million IPO – the largest Mexican IPO since October 2014.
