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Capital Markets

Gerdau’s CFO hails Brazilian bookrunners as the reason for deal success

A raft of domestic Brazilian banks is cited as landing an international landmark transaction, which led to a Euromoney Deals of the Year 2011 win.

Latin American markets promised much but delivered little in terms of equity transactions. Brazil, the traditional engine of ECM activity, flattered to deceive with a successful IPO by Arezzo in January. Then the market fell away as deal after deal has priced at the bottom of or below its pricing range.

But instead, and unusually for the region, the only ECM deal of the year goes to a follow-on transaction: the Gerdau R$4,985 million ($3.14 billion) follow-on transaction that priced in April and raised eyebrows because of who wasn’t bookrunner: any international bank.

Osvaldo Burgos Schirmer, Gerdau’s executive vice-president and CFO, says: 

"We decided to use Brazilian banks as bookrunners considering that those banks have reached global benchmark level. Additionally, the best structure came from the Brazilian banks at that time. The combination of Brazilian banks as bookrunners and international banks invited as co-managers was a good format to attract the attention and interest of a diversified portfolio of global investors." 

For full details and the story behind this deal, click here 

- Euromoney Skew Blog

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