Although it was a slower year for project finance in Brazil, Itaú BBA showed a knack for executing deals.
The bank found a sweet spot for dealmaking in power projects, most notably renewable energy. It also helped secure financing on two transportation projects at a time when Brazil’s market is increasingly complex. The bank’s ability to land key deals helped it win the Best Infrastructure Bank: Brazil award for the third consecutive year.
“The renewable sector was like an island among all the problems,” says Marcelo Girão, the head of power coverage at Itaú’s project finance unit.
Transactions included the $405 million Sao Benedito and Campos dos Ventos wind complexes. Itaú was the sole financial advisor to the sponsors.
“We found that even during the height of the crisis here in Brazil, even the commercial banks still had appetite for these kinds of projects. And for good projects, I think the appetite continues.”
In transportation, Itaú was the sole financial advisor on the Eco-101 toll road, a concession of the federal highway BR-101 in the state of Espírito Santo. In an innovative twist, the long term loan is divided in several tranches, with fixed and variable rates. The disbursement of the variable tranches depends on the SPV’s financial performance.
Itaú also provided a bridge loan for the Rio de Janeiro Light Rail Trail, which opened before the Summer Olympics.
“The majority of the sponsors in the logistics sectors have been significantly impacted by the crisis, but we were able to successfully obtain the long-term financing for both,” Girão says.
As the country’s government looks to trim spending on BNDES, local commercial lenders with project finance and debt capital markets savvy such as Itaú will be vital for tackling the region’s demand for infrastructure development. LF
WINNER: Itaú BBA
HEAD BANKER: Alexandre Teixeira
NOTABLE DEALS: São Benedito and Campos dos Ventos, Eco101 Toll Road Project, Rio de Janeiro Light Rail Transit Project, Itarema Wind Farms