On October 22, LatinFinance inaugurated SFLA – Structured Finance in Latin America forum at the Grand Hyatt hotel in Playa del Carmen, Mexico, bringing together the region’s most active structured market players from the investor, issuer, financial advisory, banking, rating agency, legal and regulatory perspectives. Featuring a full day of forward looking panel discussions, technical presentations and private 1-1 meetings, SFLA marked its ground both as a definitive platform for thought leadership on Latin American structured finance and as an unparalleled networking hub for the players driving it forward.
The event kicked off with discussing the current state of structured financing in Latin America, taking stock of some of the standard securities in use, the characteristics of investor demand, common challenges faced, and the forecast for a pickup in structured issuance. Among those that took the stage was Ricardo Dueñas, CFO of the $12bn Mexico City Airport project and frequent user of ABS, who spoke in detail on some of the airport’s revenue packaging techniques and its “implicit government guarantee” – a common feature for many of the region’s larger projects. Complementing this, Holland & Knight Partner Boris Otto made clear the risks that these new financing structures and their investor bases face, warning of the legal limbo and never-before-tried restructuring procedures a failed financing could face, especially ones with the size and scope of those currently in the pipeline.
Focus then turned to innovation in financing the regional infrastructure agenda – an area of increasing focus as governments look to use it to lift waning growth prospects – and how and why new structures like project and covered bonds are beginning to spread. Carlo Bongianni, Global Head of Infrastructure for the Multilateral Investment Guarantee Agency (MIGA), outlined some of the ways guarantee and insurance programs are helping to bring the private sector on board, while Moody’s Vice President Adrian Garza discussed the criteria evaluated when rating new projects.
On the Mexican front, discussion concentrated on the increasing innovation inside that market’s structured product profile, ranging from CMBS, real estate and energy Fibra’s and the ever growing CKD market. Right afterwards Nancy Rivera, Managing Director of Structured Finance for OPIC, outlined the role that development banks are playing – and the structures they are using – to help spawn fresh waves of capital into green energy projects across the region, igniting lively debate on the potential for developing local green bond markets.
Shortly after, an all-star cast of pan regional FIG players such as BAC Credomatic and Morgan Stanley put context to the growth prospects of FIG structures, with a special emphasis on DPR’s and future flow products. Daniela Jayesuria from Moody’s then gave a special presentation on the Brazilian structured securities line-up from FIDCs, CRIs, CRAs and LIG covered bonds. The day ended with discussion on successfully designing and implementing ABS strategies for LatAm issuers, and the benchmarks they need to meet in order to prove themselves to an ever scrutinizing investor base.
LatinFinance would like to thank all our sponsors, speakers and delegates, without whom the event would not be possible. We look forward to re-convening again next year and welcoming you all there. We will announce the dates and the venue soon.
Click here to download the special presentation from Daniela Jayesuria, Vice President at Moody's Investors Service, on Brazilian structured financing vehicles.
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