If an organization in Latin America – corporate, sovereign or multilateral – wants to raise finance, Citi will invariably be part of the conversation. The bank’s financing team, led by Adrian Guzzoni, head of debt capital markets for Latin America, and Marcelo Millen, head of equity capital markets for Latin America, has shown that Citi’s ability to access local and international sources of funding and to present options spanning debt, loans and equity is a compelling proposition for finance departments across the region.
In the past year, the bank has been able to demonstrate this range of financing options – the senior management team likes to fashion itself as the ‘Swiss army knife of financing’.
Last year, that versatility came to the fore in what were often difficult markets to read and Citi’s debt capital markets access in the region’s largest markets was a strength. Issuance in local DCM was up sharply, with volumes down in the international markets, and Citi’s ability to pivot helped it meet clients’ funding needs in a timely manner.
A good example of this was the local debenture Citi led for Kimberly-Clark de México, with Citi moving away from international issuance in the second quarter of 2022 as that market unravelled.
However, when international capacity was needed, Citi’s ability to reopen markets was clearly important. It chalked up some notable firsts.
With Antofagasta in May 2022 the bank reopened the international markets for Chilean issuers following the outbreak of the Ukraine war; its Liberty Costa Rica deal reopened the market for single-B corporate debt in January 2023; and its deal in January 2023 for Ecopetrol reopened the international debt market for Latin American corporates following three months of inactivity.
Timing the markets was especially important last year, with rising rates across the region and in the US. Citi consistently hit optimal windows for its clients, with standout refinancing deals such as Mexican company Mabe’s $370 million bond tender offer and Cemex’s $400 million tender (combined with a sustainability-linked loan) particularly good examples of capturing strong markets to tighten pricing.
Citi made refinancing a theme last year and was the leading investment bank for challenging refinancings, especially in the hardest market of all, Argentina
Citi made refinancing a theme last year and was the leading investment bank for challenging refinancings, especially in the hardest market of all, Argentina, with the bank executing all the most important exchange offers from the country – for Pampa, IRSA and Arcor.
Citi’s DCM team inked high-grade bonds for Braskem, CAF and Mivivienda, high-yield bonds for the Dominican Republic, Ecopetrol, Pemex and Natura, and sustainability-linked bonds for Liberty Costa Rica, Arcos Dorados, Equatorial Energia and CFE.
The US firm also has a solid equity franchise in the region and worked on many notable deals during the awards period, including large follow-ons for Assai, Eletrobras, CVC and Eneva.
