7 November, 2018 Chile

Chile’s PPU and Morales & Besa top Spanish America debt capital markets tables

Chilean law firms Philippi Prietocarrizosa Ferrero DU & Uría (Chile) and Morales & Besa helped Latin American companies raise the largest sums in debt capital markets transactions that took place outside Brazil between July and September, while Clifford Chance LLP, Cleary Gottlieb Steen & Hamilton LLP and Simpson Thacher & Bartlett LLP were the international firms that closed the highest number of debt issuances.

Latin Lawyer recorded nearly 25 debt capital markets deals taking place in Spanish-speaking Latin America between July and September. The deals – which saw companies raise US$9.3 billion during the three-month period – called on 23 local and eight international law firms. This represents a quieter few months in Hispanic America’s debt capital markets space than we recorded earlier in the year. Some 21 deals raised US$4.3 billion in June.

The highest volume and value of debt capital markets offerings that took place in Spanish America between July and September came from Chilean companies. Four local firms worked on eight deals that raised US$3.9 billion. In the three-month period PPU landed a place on three deals that raised US$2.6 billion in total, the most of any Latin American firm outside Brazil, while Morales & Besa worked on two, worth a combined US$2.3 billion. Both outfits worked on the Republic of Chile’s US$1.6 billion sovereign bonds issuance in July. Cleary Gottlieb in Buenos Aires and New York and Shearman & Sterling LLP in New York and Washington, DC also advised on that deal. PPU, together with Clifford Chance’s London office, also helped financial services cooperative Coopeuch issue notes worth US$1 billion in August. Linklaters in London and Carey in Chile advised the underwriters.

Two weeks after Chile’s sovereign dept tap, the Dominican Republic made a US$1.3 billion sovereign offering. It turned to Cleary Gottlieb in New York and São Paulo for legal counsel, while the underwriter relied on Simpson Thacher in New York and Pellerano & Herrera in Santo Domingo.    

Peru was another active market. According to our research, seven local firms advised on six deals raising US$529 million in total. Muñiz, Olaya, Meléndez, Castro, Ono & Herrera and PPU’s office in Lima were the only Peruvian firms to report more than one debt capital markets deal. They both helped real estate company Inversiones Nacionales de Turismo raise US$162 million in two separate offerings in August and September.

In Panama we recorded three local firms scoring a place on two big-ticket deals. In the first, Morgan & Morgan and Tapia, Linares & Alfaro worked on Spanish gambling company Cirsa’s US$1.9 billion global debt tap. Simpson Thacher and Spanish firm Garrigues helped Cirsa on that deal. Garrigues’ offices in Colombia and Mexico were also involved. This was the largest deal in Panama during the three-month period.

In the second, Arias, Fábrega & Fábrega helped the Inter-American Development Bank issue US$1 billion. The underwriter, Citibank, hired international firm Sullivan & Cromwell LLP.

Mexico’s debt capital markets remained quiet from July to September – continuing a trend that began in June. We recorded just two debt deals taking place in Mexico in June. These were followed by just one US$500 million transaction in September, involving Holland & Knight (Mexico). Left-wing Andrés Manual López Obrador’s election to the presidency in July may be one reason for the quiet spell. Businesses remain cautious about what policies the president-elect will put forward once he takes office on 1 December.

BLP (Costa Rica) helped the International Finance Corporation tap US$70 million from the debt markets in the sole Central American deal submitted to Latin Lawyer. 

In Uruguay, our research found that Guyer & Regules and Ferrere (Uruguay) advised on one offering each between July and September, raising a combined US$45 million. In Argentina, Pérez Alati, Grondona, Benites & Arntsen established a notes programme for retail company Cencosud and helped on its first US$11 million issuance. E-commerce company Mercado Libre enlisted Marval, O’Farrell & Mairal for its US$8 million offering.

Across Spanish-speaking Latin America, our findings show that banking and finance companies were the most active issuers between July and September, raising a total of US$2.6 billion in nine transactions. Our research found that sovereign bond offerings (by Chile and the Dominican Republic) accounted for the highest value debt taps, raising US$2.9 billion combined.

Our report is based on deals of any value submitted to Latin Lawyer that were signed, announced or closed between July and September 2018. Firms linked to reported deals were invited to submit other transactions that occurred during these months. We have included all counsel to the best of our knowledge. If you think your firm’s deal has been missed, you can submit it here for consideration.

Latin Lawyer published research into debt capital markets activity during the same three-month period in Brazil yesterday. Our report revealed Pinheiro Neto Advogados worked on the most deals, while Pinheiro Guimarães’s transactions had the highest combined value. We have also published research into Latin America’s equity capital markets. We observed a decline in equity activity compared to June. Law firms steered 23 equity deals, raising US$3.1 billion between July and September. Mattos Filho advised on the most deals.

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Source: Latin Lawyer

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