marking the first project financed by BBVA Compass. It
also closed a transaction in Mexico for $225m, in
which BBVA acted as financial consultant,
administrative agent, coordinator, bookrunner and sole
insurer.
In Structured Trade Finance, the quarter has been
characterized by a recovery of the rate of growth in the
principal product, transactions with ECA coverage, with
a value of nearly $500m, practically the same volume
issued throughout the entire previous year. Moreover, it
received two Deals of the Year, which is especially
interesting as it marks the first time a transaction of this
type has received this award from the three most
important magazines in the sector.
In Equity Capital Markets, the share capital increase of
Ence was closed, in which BBVA acted as co-director.
The takeover bid over Alpargatas launched by its
Brazilian Parent Company was also completed. BBVA
acted as structurer, agent and liquidator of this takeover
bid transaction.
In Corporate Finance, BBVA was the sole consultant for
Endesa in the Enel Green Power transaction, which
allowed it to become the leader of mergers and
acquisitions in Spain in terms of reported transactions.
It was also the sole financial consultant for Eside
Technologies in the exclusion of 100% of its equity on
the stock exchange.
Global Transaction Services, in its efforts to innovate
and strengthen its process of continued improvement,
has launched new global communication channels via
swift and host to host for its corporate clients, which
will allow information to be sent more securely between
the Bank and the client, in addition to providing new
value added features.
Furthermore, the Brazilian bank Bradesco has appointed
BBVA as agent bank in the share capital increase,
carried out in January, for the preference shares of
Banco Bradesco S.A., listed on the Latibex market.
In terms of awards and recognitions, Corporate and
Investment Banking received a new international
recognition upon receiving nine awards (3 Deals of the
Year and 6 Transaction Finalists) in The Banker
magazine’s 2010 Deals of the Year awards.
GLOBAL MARKETS
This unit handles the origination, structuring,
distribution and risk management of market products,
which are placed through the trading rooms in Europe,
Asia and the Americas.
The main aspects of the unit in the first quarter of 2010
are:
Increase in business volumes as compared to the last
quarter of 2009. Global Markets continued with its
customer-based business model, such that, in the
first three months of the year, it recovered the
growth of its business with SME and retail
customers and with an increase of activity with
institutional investors. In underlying assets, we
should note the increase of fixed-income business
and the reinforcement of product capacities in both
fixed-income and equity.
Leadership in equity brokerage on the Spanish Stock
Exchange, with an increase of the market share to
16.4% in the first quarter of the year. No other
competitors even reach double digits.
The high level of revenues was maintained. In the
first quarter of 2010, the area achieved a gross
income of €196m, which is 32.4% less than the
extraordinary first quarter of 2009, but marking a
31.9% increase on the 2009 average. Furthermore,
the operating income came to €140m, and net
attributable profit stood at €105m.
Geographical distribution. Product innovation
remains outstanding in Latin America. In the first
quarter of 2010, a new Exchange Traded Fund
(ETF) called BRTRAC was launched on the BMV
Brasil 15 (first index created by the Mexican Stock
Exchange constructed with foreign securities), which
is a testament to the close, continued collaboration
of this unit with Asset Management. In Asia, Global
Markets consolidated and strengthened its business
in the first three months of the year with triple-digit
growth in commercial activity.
ASSET MANAGEMENT AND OTHER BUSINESS
Asset Management is BBVA’s provider of asset
management solutions. It designs and manages mutual
funds, pension funds and the third-party fund platform
| 1Q10 |
51
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