Exclusive: Haitong launches team focused on generating business with chinese companies interested in Brazil

São Paulo, 10/14/2016 – Haitong Bank, one of the largest investment banks in China, has beenactively working to assist Chinese companies in prospecting for new businesses in Brazil, focusing on long-term financial turnaround and to promote business between the companies in their respective markets.

The Brazilian subsidiary of Haitong opened the Chinese desk in order to assist mergers and acquisitions, as well as fundraising through the capital market area and advising on the financing of infrastructure, focusing on concessions. Haitong also aims to expand its presence in these companies’ daily operations, such as trade finance, treasury and leasing, through a partnership with Haitong UniTrust Leasing, a leasing company based in China, which is part of the Haitong Group.

“Chinese companies focus on the long-term, are pragmatic and assertive", says the CEO of Haitong Brazil, Alan Fernandes, in an exclusive interview with Broadcast. He says that, despite what many people think, China’s investment purpose is similar to other participants. “They want returns,” he adds.

During the frequent visits he makes to China and the companies in the country, Fernandes says it is common to for him to meet representatives of Brazilian, American and European banks, as well as banks from other countries of which China is a trading partner. But he notes that, except for companies with a global presence, the other companies tend to operate with institutions that are culturally aligned with China.

Because of this, Fernandes believes it is probable that other Chinese investment banks will come to Brazil, as well as investment funds. “Chinese companies want to establish the necessary structure to operate in Brazil”, he says.

The infrastructure and the agribusiness segments are the ones that have attracted most interest among the companies with which Haitong maintains contact. Chinese group Pengxin and Haitong Securities recently announced – during a Seminar organized by the Brazilian government before the G-20 meeting held in China – their intention to create a US$1 billion investment fund for Brazilian agriculture to invest in the Agricultural sector’s production chain, mainly in logistics and infrastructure. Haitong also participated in the 57% sale of Fiagril to Hunan Dakang Pasture Farming Co.

Areas of interest

Highways, sanitation and energy are the sectors that Chinese companies have been currently looking to merge and acquire, although they are interested in all infrastructure segments, according to Fernandes.

In concessions, Fernandes said that the most important Chinese players are aware of opportunities being discussed and should be present in auctions as project sponsors, operating in the construction area, willing to form partnerships with medium-sized companies.

Fernandes praises the new administration’s change of attitude towards infrastructure, but says there is still a long road ahead. “We are not yet prepared for the shutdown of BNDES financing. We still depend on the development of the local debentures market. Mechanisms to mitigate the exchange risk are important to attract foreign capital”, he added. (Cynthia Decloedt - cynthia.decloedt@estadao.com)

Source: AE NEWS