Infrastructure Investors Forum: Latin America

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  • Event Focus

    Latin America faced an uphill battle this year with the effects of COVID-19 slowing economies, which caused deal activity in the region to pause the first half of the year. In the past, the region has been resilient to global trends, however, 2020 has proven to be a tougher fight. 

    IIF Latin America will explore why the region is prolific for international investors, what and where are the best infrastructure opportunities. Speakers will explain why Brazil moves forward and Mexico stays behind. Can they be considered the most active countries in the region now, considering that investments in Brazil are predominantly made by private companies, but not in Mexico?

    The region saw an influx of deals in the third quarter. Activity grew an order of magnitude by value with 117 deals worth USD 16.7bn in 3Q20 compared to 80 deals worth USD 1.3bn in 2Q20. The third quarter also saw the four largest deals in the region, the largest being Oi’s proposed sale of its mobile business. Telefonica Brasil, TIM Participacoes and Claro Telecom Participacoes agreed to acquire the mobile business in September, which was valued at USD 3.1bn. The bulk of the transactions in the region occurred domestically with 220 deals worth a combined USD 18.1bn having an investor based in Latin America. A push for deals was seen in Q3, with 82 deals worth USD 13.9bn accounted for in the quarter.

    Telecommunications and technology sectors thrive. These two sectors were two of three sectors in the region that did not see a decline in activity by value in 2020 compared to 2019. The telecoms sector saw a 39% jump by deal value with 5 deals worth USD 3.6bn in the first three quarters compared to the same period last year, which saw 14 deals worth USD 2.6bn. This increase comes from Oi’s sale of its mobile business. The largest deal in the technology sector, StoneCo’s acquisition of Linx, was announced in the third quarter and was valued at USD 1.1bn. When will the region see activity levels reach previous year record highs again?

    The well attended ANI’s project, which will be the first PPP tendered as part of Colombia's fifth generation (5G) infrastructure investment program, has attracted the interest of several local and international companies. The 29-year concession has a capex of COP 1.16trn (USD 297m), while the opex is COP 1.83bn. The project involves works on 310km (192.6 miles) of roadways around the city of Cali, in the Pacific Valle del Cauca department. 

    This must attend conference is a unique opportunity to discuss the investment landscape in Latin America with leading global investors and to interact with the key industry players who are creating the opportunities which will continue to drive infrastructure investing in the region.