Latin American ECM is on a tear this year, with issuance climbing to a 3-year high after a sluggish 2016. Follow-on deals for Brazilian transport operator Rumo, and Mexican REIT Fibra Uno, continue the momentum into Q4—both priced in the first week of October. Rumo’s $838m deal is Brazil’s second largest follow-on this year; while Fibra Uno is Mexico’s largest follow-on since October 2016.
As a trusted financial platform partner, Dealogic helped Rumo’s bookrunners seamlessly and solely execute the transaction through the DealManager network. The deal was led by Bradesco, Morgan Stanley, Santander, Banco do Brasil, Itau, Bank of America Merrill Lynch, BTG Pactual, Credit Suisse, and Goldman Sachs
Fibra Uno’s deal was also the first dual-tranche transaction executed on the network with order sharing among bookrunners in LatAm this year.
Transaction Details–Rumo
Nationality: Brazil
Industry: Transportation
Deal Value ($m): $838
Deal Type: Fully marketed follow-on offering
Priced: October 4, 2017
Bookrunners: Bradesco, Morgan Stanley, Santander, Banco do Brasil, Itau, Bank of America Merrill Lynch, BTG Pactual, Credit Suisse, and Goldman Sachs
Transaction Details–Fibra Uno
Nationality: Mexico
Industry: Real estate
Deal Value ($m): $610
Deal Type: Fully marketed follow-on offering
Priced: October 4, 2017
Bookrunners: Santander, Goldman Sachs, Bank of America Merrill Lynch, Credit Suisse, UBS, HSBC, BTG Pactual, BBVA, Actinver Securities
Key Points
- Latin American ECM volume has surged 306% year-on-year to stand at a 3-year high of $19.8bn ($19.4bn in 2014 YTD). Deal flow of 62 issues makes it the most active period for the region since 2013, when 64 deals were priced
- Follow-on transactions account for 62.4% of total deal activity, with volume of $12.4bn from 44 deals also at the highest YTD level since 2014 ($17.9bn from 41 deals in 2014)—driven by record-high YTD accelerated offerings of $2.4bn from 21 deals
- There have been eight fully marketed follow-on offerings more than $500m in size so far this year—the most in 6 years when nine deals were offered in 2011 YTD. Of the eight follow-on transactions, both Rumo and Fibro Uno were priced in the first week of October
Top 5 Latin American follow-on transactions (ex-financial) in 2017 YTD
- CCR, $1,304m | Brazil | transportation | February 2017
- Rumo, $838m | Brazil | transportation | October 2017
- Lojas Americanas, $768m | Brazil | retail | March 2017
- Fibra Uno, $610m | Mexico | real estate | Oct 2017
- BR Malls Participacoes, $532m | Brazil | real estate | May 2017
Source: Dealogic, as of October 10, 2017
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