2017 Best Corporates in the Capital Markets

With mammoth equity offerings and bond sales, along with large acquisitions at home and abroad, the winner of LatinFinance’s awards for Best Corporates in the Capital Markets got deals done in a tough economic environment. By Mick Bowen

 

By most accounts, the last year or so has been a tough time to do business in Latin America. Brazil only climbed out of a prolonged recession in the first quarter of this year, but it is still not standing on solid ground. Argentina returned to economic growth in the third quarter of last year, but the stock index provider MSCI declined to promote South America’s second-largest economy to emerging market status, leaving it in the frontier market category. Mexico got knocked by the election of US President Donald Trump in November last year, casting doubts over the future of relations with its largest trading partner. And commodity prices, so important to serval economies around the region, have wavered, struggling to build on gains made earlier this year.

                But Latin America corporates have remained active in the financial market. Some may have outlined lower investment plans and some may have turned to asset sales to reduce debt, but other companies still need to raise capital, whether from loans, bonds or shares, and yet others are looking to grow through acquisitions. Here LatinFinance recognizes the companies that best managed their financing in the 12 months through the end of March this year with our awards for Best Corporates in the Capital Markets.

Chile’s Latam Airlines, the subject of this issue’s cover story, bagged the award for the best overall strategy in the capital market, along with the Andean regional award in the same category. The infrastructure concessions company CCR took the spot in Brazil and also earned the award for the corporate with the best equity market strategy in the region. As Brazil’s stock market worked through a flush of IPOs and follow on offerings, CCR found the right time to sell 4.07 billion reais ($1.23 billion) in new shares, more than doubling its cash flow in the first quarter this year.

                Mexico’s Pemex was among the winners again, earning accolades for a surprise $5.5 billion cross-border bond that drew more than $30 billion in orders. Pampa Energia was rewarded for the acquisition of Petrobras’ assets in Argentina and doubling the size of the company. Other standouts include Mexico’s Fermaca, which secured more than $1 billion in loans for two natural gas pipeline concessions, and Brazil’s Suzano, which issued $300 million in 30-year bonds at a rate of 7%.

                LatinFinance’s editorial team chose the winners of the Best Corporates in the Capital Markets after talking to market participants and reviewing a wide selection of deals across the region. LF

 

ANDEAN CORPORATE WITH THE BEST CAPITAL MARKETS STRATEGY

Latam Airlines Group

MEXICAN CORPORATE WITH THE BEST CAPITAL MARKETS STRATEGY

Pemex

BRAZILIAN CORPORATE WITH THE BEST CAPITAL MARKETS STRATEGY

CCR

CENTRAL AMERICA/CARIBBEAN CORPORATE WITH THE BEST CAPITAL MARKETS STRATEGY

Unicomer

HIGH GRADE CORPORATE WITH THE BEST BOND MARKET STRATEGY

Pemex

HIGH YIELD CORPORATE WITH THE BEST BOND MARKET STRATEGY

Suzano

CORPORATE WITH THE BEST LOAN MARKET STRATEGY

Fermaca

CORPORATE WITH THE BEST EQUITY MARKET STRATEGY

CCR

CORPORATE WITH THE BEST REGIONAL M&A STRATEGY

Pampa Energia

CORPORATE WITH THE BEST EX-REGIONAL M&A STRATEGY

Grupo Mexico

OVERALL BEST CORPORATE IN THE CAPITAL MARKETS

Latam Airlines Group

 

Overview

LatinFinance’s 2017 Best Corporates in the Capital Markets Awards celebrate the companies in Latin America and the Caribbean that have made the most impressive use of the debt, equity and M&A markets between April 1, 2016 and March 31, 2017.

Categories

Provisional categories for Best Corporates in the Capital Markets 2017 are:

  1. Best Capital Markets Strategy: Andes
  2. Best Capital Markets Strategy: Mexico
  3. Best Capital Markets Strategy: Brazil
  4. Best Capital Markets Strategy: Central America & the Caribbean
  5. Best Bond Market Strategy: LatAm High Grade
  6. Best Bond Market Strategy: LatAm High Yield
  7. Best Loan Market Strategy
  8. Best Equity Market Strategy
  9. Best Regional M&A Strategy
  10. Best Ex-Regional M&A Strategy
  11. Overall Best Corporate in the Capital Markets

Criteria

Best Capital Markets Strategy — Andes/Mexico/Brazil/Central America & Caribbean, and Overall Best Corporate in the Capital Market
These accolades recognize the institutions in each part of Latin America that have used local and international debt, equity and syndicated loan markets to best effect. A company does not have to have been active in all three areas over the reference period to be considered for the award: institutions that have excelled in just one market will be considered. The award emphasizes the longer-term strategy of accessing markets over the success of a single transaction, and hence takes into account:

  • Investor relations efforts and strategy, including frequency of market communications
  • Ability to use multiple markets for best effect
  • Success of individual transactions in terms of size, timing, and investor response
  • Secondary performance of deals
  • Changing investor perceptions, including ratings upgrades and downgrades
  • Innovations in funding and capital strategy, and ability to take advantage of changing external factors such as regulatory changes or macroeconomic scenario

 

Best Bond Market Strategy — High Grade/High Yield
These categories focus on Latin American corporates’ debt issuing strategy, considering primarily term bonds sold in local and international markets. Any Latin American company to have issued debt since April 1, 2015, will be considered. The award emphasizes the longer-term market access strategy over the success of a single transaction. Factors under consideration in this category are:

  • Investor relations efforts and strategy, including frequency of market communications
  • Success of individual transactions in terms of size, timing, and investor response
  • Secondary performance of deals
  • Use of liability management to optimize the funding profile
  • Changing investor perceptions, including ratings upgrades and downgrades
  • Innovations in debt financing strategy, and ability to take advantage of changing external factors such as regulatory changes or macroeconomic scenario

 

Best Equity Market Strategy
This award recognizes the Latin American company to have had most success in the primary equity capital markets since April 1, 2015. The award emphasizes the longer-term market access strategy over the success of a single transaction. Factors under consideration are:

  • Investor relations efforts and strategy, including frequency of market communications
  • Success of individual transactions in terms of size, timing, and investor response
  • Secondary performance of deals
  • Innovations in capital strategy

 

Best Regional and Ex-Regional Strategy
These awards consider the expansion strategies of Latin American companies within Latin America (Best Regional Strategy), and outside Latin America (Best Ex-Regional Strategy). The award looks at the strategic rationale and success of mergers, acquisitions and divestments outside a company’s home country, and takes into account transactions closed between April 1, 2015 and March 31, 2016. Specific factors to be reviewed are:

  • Investor relations efforts and strategy, including frequency and clarity of market communications
  • Size, timing, and utility of mergers, acquisitions and divestment
  • Market reaction to M&A activity
  • Success in financing acquisitions
  • Execution success in M&A activity

 

Selection Process

Pitches and nominations
If you'd like to recommend potential candidates for LatinFinance's 2017 Best Corporates in the Capital Markets Awards, send us their details, and a brief note as to why you think they merit consideration, to awards@latinfinance.com with the subject line "Best Corporates 2017". You may only nominate one institution per category, and any supporting material must not exceed one A4-sized sheet. Any nominations must be received by end of day on Tuesday, April 11, 2017.

 

Shortlisting
A shortlist of five institutions in each category will be decided by soliciting feedback from market participants, examining transaction data and market history, and reviewing nominations.Latin American companies that have been active in the local or international capital markets, or which made acquisitions or divestments, since April 1, 2016, will form an initial longlist of candidates. This data will be drawn from data from Dealogic and LatinFinance. Capital markets analysts, investors, issuers and bankers will be asked for feedback by phone and in person by LatinFinance’s editorial team through the course of April 2017 to refine the list of candidates. The longlist and the market feedback will be reviewed by LatinFinance’s editors, and cross checked with publicly available data to draw up the shortlist of five institutions in each category.The shortlist for each category will be published on the Best Corporates Awards page (www.latinfinance.com/bestcorporates), on April 12, 2017.

 

Voting
A market vote will be taken to inform the selection of the winners. Voting will be open online from April 12 to April 21. A link will be provided on the Best Corporates Awards page (www.latinfinance.com/bestcorporates), published in LatinFinance’s Daily Brief and circulated on social media once the poll is live. LatinFinance invites debt and equity bankers, traders, portfolio managers, credit analysts, funding officials, chief financial officers, treasurers, chief investment officers and other market participants to vote on the shortlist, subject to the following rules:

  • Each person may only vote once.
  • Voters may not vote for their own company or an affiliated one.
  • Individuals and companies are allowed to pass details of the voting process to their clients and peers.
  • Votes are kept strictly confidential and will not be disclosed.

 

Examination of financial data & final evaluation
LatinFinance will review official financial data for each of the shortlisted or nominated corporates. As is relevant in each category, such data will include, but will not be limited to: financial reports and accounts, company presentations, stock exchange filings, transaction pricing details, secondary market trading data. LatinFinance's editors will seek further qualitative feedback from market participants in April. LatinFinance’s editors retain discretion over the final allocation of awards in each category. The final decision will be based on market votes submitted, financial data, and feedback on market events and transactions over the course of the past 12 months.

Participate

Nominate a candidate

If you'd like to recommend potential candidates for LatinFinance's 2017 Best Corporates in the Capital Markets Awards, send us their details, and a brief note as to why you think they merit consideration, to awards@latinfinance.com with the subject line "Best Corporates 2017". You may only nominate one institution per category, and any supporting material must not exceed one A4-sized sheet. Any nominations must be received by end of day on Tuesday, April 11, 2017.

Voting


A market vote will be taken to inform the selection of the winners. Voting will be open online from April 12, 2017 to April 21, 2017. 

 

LatinFinance invites debt and equity bankers, traders, portfolio managers, credit analysts, funding officials, chief financial officers, treasurers, chief investment officers and other market participants to vote on the shortlist, subject to the following rules:

  • Each person may only vote once.
  • Voters may not vote for their own company or an affiliated one.
  • Individuals and companies are allowed to pass details of the voting process to their clients and peers.
  • Votes are kept strictly confidential and will not be disclosed.

Contact

Enquiries can be sent to awards@latinfinance.com with "Best Corporates 2017" in the subject line.

Previous winners: 2018, 2016, 2015