Awards for Excellence 2018
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The rising economic fortunes of the largest countries lifted nearly all investment banking boats. Local investment banking franchises continued to notch up strong deal flow and fees, but last year was noticeable for the improvement in the fortunes of the international banks.
In recent years, local banks have been very successful in leveraging balance sheet relationships; this has led to ‘bookrunner inflation’ on deals and, as the locals have begun to win global coordinator or stabilization roles, this has impacted international banks’ share of the fees.
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Augusto Urmeneta |
However, last year not only saw fees rise for all participants but also the international banks as they reasserted their differentiation by bringing an edge through international investors, global industry expertise or structuring innovation. Many of the international banks enjoyed strong years, but Bank of America Merrill Lynch was the most consistent performer across the region – and notably strong in the year’s critical markets of Brazil and Argentina.
The bank is traditionally strong in M&A and equity capital markets, and it again played to these strengths last year, gaining the top spot in the region’s ECM and M&A volumes with market shares of 11.8% and 32.2% respectively, according to Dealogic.
In M&A, the bank – led in the region by Augusto Urmeneta – closed a dizzying array of deals across geographies and industries. It acted for the buy side and the sell side in cross-border transactions, national consolidation plays, strategic acquisitions and disposals of non-core assets.
One of the bank’s most impressive deals was also one of the biggest: it was exclusive sell-side adviser for Kenon on its deal with I Squared Capital in a sprawling transaction covering assets in Peru, Chile, Panama and elsewhere. The Peruvian part alone was one of the biggest deals that country had seen.
Also in the power sector, BAML advised State Grid on its $3.6 billion sale of Brazilian assets to CPFL Energia, in what was the largest Asian outbound M&A. It also notched up transformative deals in many other sectors, including chemicals (for Vale), healthcare (UnitedHealth Group), technology (Cabify) and retail/consumer (Cerveceria Nacional Dominicana and Oticas Carol).
BAML also claimed top spot in the ECM tables due in large part to its ability to bring international investors into companies throughout the region and in many industries. Over the year it won its way onto some of the region’s most prestigious deals, including IPOs for Petrobras, Loma Negra, PagSeguro, Carrefour and follow-ons for Galicia and Santander.
BAML can also point to a full range of debt transactions, with sovereigns deals for Chile, Colombia, Peru, Uruguay, Panama, Mexico and Jamaica, the last achieving that country’s lowest-ever new issue premium. The bank also managed an impressive array of corporate and FIG transactions in the region, including high-yield, high-grade, inaugural deals and liability management trades, as well as green bonds and highly structured nonrecourse debt issuances.
The bank also has the ability to issue locally in the region’s key markets, which adds critical flexibility for client coverage.
