Best Trade Bank in Latin America: BBVA

Runner-up: Banco do Brasil
Commended: Deutsche Bank
2007 Winner: ABN Amro/BBVA

Spanish companies have always looked towards Latin America in the same way that British companies look towards the US.

It is little surprise, therefore, that it should be a Spanish bank, Banco Bilbao Vizcaya Argentaria (BBVA), that scoops the award for the Best Trade Bank in Latin America. Indeed, so entrenched is it in the region that it is one of the most recognised brands in this part of the world, with an impressive branch network.

BBVA is very much a result of the consolidation of the once-sleepy Spanish banking system in the 1980s. Today, it is a key participant in many of the world’s biggest syndicated deals, such as Rusal’s major financings, as well as leveraging its position in both the Spanish and Latin American markets to fund export finance deals backed by CESCE, the Spanish export credit agency.

One example of this is the TFR Deal of the Year award-winning $144.8m Destilmex deal, which involved the construction of a biofuel production plant in Mexico, a deal made more complicated by the fact that both buyer and supplier were categorised as small and medium-sized businesses (SMBs).

Such deals also reflect how BBVA is keen to provide finance to SMBs – provided the structure is right – and not just tier one and tier two companies.

While Spain has its own property price-crash to contend with, the country’s banking regulator cleverly ensured that its banks steered clear of sub-prime – simply by instructing banks to set aside the same amount of capital against assets in their special investment vehicles as they would do with assets held on their balance sheets.

Such prudence on the part of the Spanish banking regulator has ensured that BBVA is in a good position to capitalise on many rivals’ woes – especially in such a promising market as Latin America.

“We have increased our structuring capabilities with new hires and a new approach to the business.”

Federico Papa, Santander