Following a sterile first quarter, cross-border future-flow deals from Latin America are coming back to life. Brazilian wood pulp producer Aracruz Celulose and Salvadoran bank Banco Salvadoreno have awarded mandates to veteran JPMorgan Securities and regional newcomer Wachovia Securities, respectively. Should favorable circumstances hold, neither deal is expected to take very long.
Sized at US$150 million, the Aracruz transaction will come off a program through vehicle Arcel Finance Limited. The upcoming transaction will probably have a legal final maturity of seven years and an average life of five years. JPMorgan snatched the mandate in what was said to be a fierce contest. Fees were crunched as a result, according to a banker who lost the deal.