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Rodolfo Vela

Rodolfo Vela. DirectorLatin America Credit MarketsDebt Capital Markets Developments in Latin America. 1. State of Global Capital Markets. Introduction to Funding Alternatives in the Debt Markets. . . . . International Capital Markets. Domestic Capital Markets. Syndicated Loan Markets. CorporatesGovernmentsFinancial Institutions.

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Rodolfo Vela

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    2. Rodolfo Vela Director Latin America Credit Markets Debt Capital Markets Developments in Latin America

    3. 1. State of Global Capital Markets

    4. Introduction to Funding Alternatives in the Debt Markets

    5. Current Global Credit Market Themes

    6. Benchmark Interest Rate Outlook

    7. Early Fed Fund Rate Hikes Have Little Impact on Credit

    8. Heavy Inflows and the Effect on Corporate Credit Spreads

    9. Credit Performs Well Despite Macro Shocks

    11. 2. State of Latin America Capital Markets

    12. Historical Debt Issuance in Each Market

    13. Traditional International Capital Markets

    14. Traditional International Capital Markets (Cont’d)

    15. Emergence of Regional Capital Markets in Local Currency

    16. Syndicated Loans Market

    17. Syndicated Loans Market (Cont’d)

    18. 3. State of Capital Markets for Financial Institutions

    19. 2011 YTD Fixed Income Themes – Markets Remain Robust

    20. Key Financial Institution Themes for 2011

    21. Basel III: Discussion Points

    22. US Short-Term Bond Market Conditions Are Robust

    23. Issuance Trends by Financial Institutions

    24. US$ Issuance Characterized by Strong Yankee Participation

    25. Top Investors in Yankee Financials

    26. Recent Financial Investment Grade Issuance

    27. Financial Institution Sector Share in LatAm

    28. EM Financial Institutions Issuance

    30. Overview of Recent LatAm FI Transactions

    31. 4. Selected Case Studies

    32. US$850MM 3-mo LIBOR + 210 bps FRN due 2014 US$500MM 4.125% Notes due 2016 May 2011

    33. US$1.35 Billion Dual Tranche Senior Notes Offering The transaction was initially announced as a 5-year fixed transaction in the morning at whispers of T+237.5 area. Size was not formally defined , however investors were guided to a US$ Benchmark target size Syndicates soft-sounded the 3 year FRN transaction during the bookbuilding process, and the issuer received a meaningful anchor order for a new 3-year FRN in the context of 3mL+210, which was officially announced and broadened to a wider account base Prior to the transaction announcement, the Bradesco 4.10% 2015s were trading in the context of T+165 bp which equated to a G-Spread +217 bps Guidance emerged at 3mL+210 bps on the 3-year floating rate Tranche and T+235 bps on the 5-year fixed rate tranche Order books grew rapidly following announcement, with several anchor orders from core fixed income investors driving 3-year FRN growth. The book on the FRN ultimately grew to enable a $850M tranche size or 1.7x the size of the 5-year FXD tranche Bradesco ultimately launched and priced its offering inside guidance as a $850 million 3-year note at 3mL+210 bp and a $500 million 5-year bond at T+235 bp, resulting in a coupon and an yield of 4.125% and 4.198% respectively The offering achieved broad sponsorship with around 100 separate accounts participating in one or both of the tranches

    34. Investor Distribution

    35. Orderbook Evolution

    36. BBVA Paraguay US$100 million 9.750% Notes Due 2016 February 2011

    37. BBVA Paraguay US$100 million 9.750% Notes Due 2016

    38. BBVA Paraguay US$100 million 9.750% Notes Due 2016

    39. Banco do Brasil $1.5 Billion 8.50% Perpetual Securities October 2009

    40. Banco do Brasil $1.5 Billion 8.50% Perpetual Securities

    41. Banco do Brasil $1.5 Billion 8.50% Perpetual Securities

    42. 5. Conclusions

    43. Conclusions…

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