Bloomberg and the Washington Post recently reported on Citigroup’s decision to hire banking mogul Alfredo Capote from Goldman Sachs to oversee Banamex,which is the company’s new arm of investment banking operations in Mexico. Capote reportedly took the position last December,according to an internal memo that was obtained by Bloomberg and later confirmed.
“Citigroup is competing to win underwriting fees after Mexican companies raised a record amount in equity offerings last year,” writes Bloomberg. “Soaring stock valuations have also boosted mergers and acquisitions activity in Latin America’s second-biggest economy,with Anheuser-Busch InBev NV agreeing last year to pay about $20 billion for the half of Corona-maker Grupo Modelo SAB.”
Capote previously worked with Goldman Sachs since 2006 and has also served at Morgan Stanley. Bloomberg reports that profit from operations at Citigroup’s Latin American securities and banking unit increased 33 percent in 2012,hitting more than $1 billion. The firm’s operations in Mexico include trading and investment banking.
“Citigroup helped Mexican companies issue about $5.7 billion in equity in 2012,putting it first among the nation’s underwriters,” writes Bloomberg. “It also issued 51.9 billion pesos of local currency for businesses,the most in the market after BBVA.”
Also of note,the benchmark IPC index of Mexico’s stock market rose more than 18 percent during the final months of 2012,hitting a record high on December 18. Banco Santander SA contributed heavily to the growth in 2012,participating in the largest equity share sale in history to be conducted in Mexico. In addition,Mexico real estate securities accounted for three of the market’s ten equity offerings released in 2012,according to Bloomberg data.
The main competitors of Citigroup in Mexico are Banco Bilbao Vizcaya Argentaria SA and Credit Suisse Group AG.