In 2020, for the second consecutive year, we are at the top of ANBIMA's ranking of CRI issuance. In addition, we are among the 10 largest issuers of fixed income securities in Brazil.
Since August 2013, we have completed more than 10 billion in structured credit transactions, assisting our clients in raising funds with local and international investors.
In 2020, for the second consecutive year, we are at the top of ANBIMA's ranking of CRI issuance. In addition, we are among the 10 largest issuers of fixed income securities in Brazil.
Since August 2013, we have completed more than 10 billion in structured credit transactions, assisting our clients in raising funds with local and international investors.
For the second year in a row, we are the leader in M&A rankings in Brazil.
In 2020, even in a challenging scenario, we consolidated our leadership position in the rankings of Bloomberg and Mergermarket.
We are proud of this achievement and thank our customers for their trust that has allowed us to achieve this important brand.
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While Brazilian politicians are fighting, the health crisis of the coronavirus is worsening in Brazil and pushing the global economy into the worst crisis since the Great Depression of 1929. For the president of the investment bank BR Partners, Ricardo Lacerda, it is time for Brazilians to decide on priorities: "Do we want governments to polarize technical issues or try to ease the gravity of the situation a little, as we see in other countries?
Seeking confluence is essential, not least because the executive sees an unchanging reality in relation to the pandemic: "We will all emerge poorer from this crisis". In this sense, he says it is necessary to show that there is technical capacity in Brazil to deal with the problem. So, who knows, foreign capital may return to the country. "There must be an effort to recover foreign interest in our business environment."
Another issue that concerns the financial market today - a possible departure of the Minister of Economy, Paulo Guedes - also leaves Lacerda apprehensive. "Paulo Guedes is today the great guarantor of reducing the size of the state, of trying to curb fiscal abuses in this time of pandemic. I think a ministerial exchange at this time would be a terrible solution," he said during a series of live interviews "Economia na Quarentena," of Estadão.
Read the main parts of the interview below:
We have to analyze that we have experienced three crises: health, economic and political. The health crisis is a global and serious crisis, about which there is much uncertainty. It is not something done against Brazil, it is not armed, it is costing lives and it is surrounded by uncertainties. The economic crisis is also serious and manifests itself in a very violent retraction of the GDP (Gross Domestic Product), as we have not seen since the 1929 Depression. The forecasts are that the GDP will contract between 10% and 20% in the second quarter and, in the year, between 5% and 10% - Brazil included there. And this has impacted the dynamics of the countries' public debt, the debt of companies and individuals. We will all emerge poorer from this crisis. To understand the political crisis, it is necessary to go back to the last two presidential elections in Brazil, in which we saw a lot of polarization. There was an escalation of verbal aggressiveness. This division continued during the mandate of President Bolsonaro. And we clearly see the intention to adopt a speech to please a very faithful audience that can guarantee, at least, the participation (of Bolsonaro) in the second round of the 2022 elections. But this polarization has caused a lot of insecurity in this one.
There is some good news - we have seen some reopening around the world, a stabilisation of the number of cases in several Asian countries. We are also seeing very promising coronavirus treatment and immunization protocols. So it's possible that we're entering an even more favorable environment. On the economic issue, the Fed (Federal Reserve, U.S. central bank) has done a very violent injection of money into the economy. And this led the financial market to some recovery. Regarding the political issue, it is difficult to see anything positive. The economic crisis is aggravated by the political crisis.
We already live in an environment of great uncertainty. As the authorities cause even more uncertainty, it is a problem. Everyone understands that public debt is growing, that there is going to be a new normal with regard to indebtedness. Because everyone understands that you have to spend what is necessary to save as many lives as possible. Confusing the agenda of fighting the pandemic with the ideological agenda creates insecurity for investors and entrepreneurs. If the way out of the crisis is going to be partly through investment, that is the wrong path.
The exchange rate is extremely devalued. It should be at R$ 4.60 or R$ 4.80, not R$ 5.70. The government made the right decision to make a large capital injection into the economy, reducing interest rates. This was conducted impeccably. What could be done was done. And when you make a reduction in interest rates in the magnitude that we did, the thing has to go elsewhere. And that side was the exchange rate. It's inevitable, but I also think the government has underestimated the exchange rate issue. And that eventually gave rise to the perception that the government would not defend the currency. This volatility of the real can cost in terms of credibility with investors.
When you have a real that is three or four times more volatile than other emerging currencies, the investor is scared. And he wonders if, to take that risk, I'll have to charge a higher premium? And there's the fiscal question. We came against a backdrop of recovering fiscal discipline. That scenario went into space with the effects of the pandemic. What concerns us is the political opportunism to promote unnecessary spending. With the political crisis, it becomes more evident that the government will use its capital to guarantee its governability and reelection, and less to guarantee the original agenda of reducing the size of the state.
I don't think there's an environment for them in the short term. Now is to face the pandemic, recover the economy and ensure governability until the end of the current term. The tax reform is quite mature, while the administrative reform is lagging behind. We will have to pass the crisis to recover this debate. This discourages foreign investors a lot. Brazil is creating a history of disappointing economic and political issues. The election of the Bolsonaro brought enthusiasm with a liberal biased economic team - and again this promise did not materialize. There must be an effort to recover foreign interest in our business environment. The investor looks and says: Brazil with one more noise, one more weird statement that will reverberate the world? And he thinks better.
Certainly. Paulo Guedes is today the great guarantor of reducing the size of the state, of trying to curb tax abuses in this time of pandemic. I think a ministerial exchange at this time would be a very bad solution. I see with great concern a possible exit of Paulo Guedes.
I'm no expert on that. But I would aim a lot at the examples from outside, where what had to be done was done, for a short period of time, to avoid an absolute calamity. Where it needed lockdown, it did. We're seeing a lot of these countries back to normal. This decision has to be referred to epidemiologists and scientists. We need to have a way. We're going to lockdown? We're gonna do it. It's not gonna be the end of the world. It's not gonna be the federal or state government that's gonna define this, it's gonna be the virus, the severity of the health situation. I wouldn't minimize the problem. Not least because minimizing it creates more distrust, more uncertainty and slows down the economic recovery. I think this discussion has become too vulgarized, with a dispute between populists on one side and opportunists on the other. People have to evaluate: do we want governments to polarize technical issues or try to ease the gravity of the situation a little, as we see in other countries?
Many countries have helped companies during the pandemic to try to maintain jobs and economic activity. It is natural to evaluate this type of measure. One must be careful that if this is done in Brazil, it does not benefit one or the other, but that one applies the very scarce resources to help the economy a little. I see huge risks. If you look at the PT government, until 2008 it had a relatively disciplined fiscal policy. Starting in 2010, the PT discovered how to use the resources of public banks to provide incentives for certain groups. It ended up taking a taste for it and this resulted in an explosion of the fiscal deficit, a policy that basically broke the country. We have a history of making use of these expedients in a way that is not adequate.
Originally published in Estadão on 19/03/20. Link: https://economia.estadao.com.br/noticias/geral,vamos-todos-sair-mais-pobres-desta-crise-diz-presidente-da-br-partners,70003308004
The first half of this year was very challenging, but with great results for BR Partners. We ranked 1st in mergers and acquisitions (M&A) by total value, according to the Transactional Track Record (TTR) ranking, with a total volume of R$4.8 billion in completed transactions. We also ranked 1st in the issuance of Certificates of Real Estate Receivables (CRIs), according to the Brazilian Association of Financial and Capital Market Entities (Anbima).
The leadership of BR Partners is the result of the excellence of our M&A and capital markets teams, as well as the expressive growth of our performance in structuring and selling hybrid and fixed income securities in recent years.
We thank all our employees and team for their success. The challenge of successfully navigating the crisis caused by the new coronavirus demonstrates our great ability to adapt, and we will continue working hard this second half to help our clients achieve their goals.
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