The InfraDeals Latin America Analysis for YTD 2015 points to a sharp decline in infrastructure deal count this year after 2014’s boom. However new greenfield projects are on the rise as governments seek countercyclical investments, and foreign investors are attracted into the region because of the lack of profitable alternatives in traditional markets like Europe.
A total of 109 greenfield, brownfield, sales and refinancing deals closed in the first ten months of 2015 in Latin America, totalling around USD35.75 billion. This is a sharp decline in comparison to 2014’s USD51 billionFY total but still above the 91 deals for USD32.6 billion registered in 2013.
The number of deals with at least one international player rose in the first 10 months of 2015 to around 65 per cent from 49 per cent in 2014.
In the nearly three years from January 2013 through October 2015, bank debt was led by Santander which took part in 39 per cent of the deals, followed by BBVA and Bradesco. Santander also led the ranking for debt arrangers, with a 27 per cent market share.
Since the financial crisis, China has become the Latin America and Caribbean region’s second trading partner and has made around USD10 billion per year in direct foreign investments.
According to BBVA global head of infrastructure project finance Miguel Peña, despite the negative impact of lower commodity prices on the region, overseas interest in Latin America remains high because of depressed yields in lower-risk markets such as Australia, Germany or the UK.
