If 2012 exposed Latin America’s dependence on commodities and international demand – with lower economic growth recorded across the region – it also provided something of a landmark for its equity capital markets, as the traditionally dominant Brazil was outperformed by the rest of the region.
According to data provider Dealogic, in 2012 Brazil experienced the lowest deal volumes since 2005, with $7.6bn raised through 28 deals, representing a 32% decline in deal volume compared to 2011. The rest of Latin America experienced its second best year on record, with Latin American issuers – excluding those in Brazil – raising a total of $16.5bn through 42 transactions. This included $9.1bn across 17 initial public offerings (IPOs), making it the best year on record for IPOs.
