In 2001, Argentine companies had almost no access to
capital. The country was heading for default and banks began
slashing corporate credit lines. Corporates also had little
access to affordable political risk insurance. But Deutsche
Bank managed to pull together a $220 million syndicated deal
for Argentine oil company Pecom Energía, majority owned
by Pérez Companc, which mitigated the enormous political
and economic risks facing Argentine companies.
Bankers at Deutsche realized that while the market accepted
the performance risk of Pecom, it was concerned about the
convertibility and transferability risk facing the company. The
structure of the deal minimized Argentine sovereign risk in
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