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Year-End 2014 Report
| Regional Trends
Latin America
Capital Raisings
Three issuers raised approximately $2.6 billion in DR form, of
which approximately $1.3 billion (or 48%) was from a single
issuer, Grupo Aval from Colombia. This was the largest initial
public offering in the region and listed on the NYSE.
Approximately $1.3 billion was raised by 2 issuers in follow-
on offerings, accounting for 52% of all capital raisings from
the region. The largest follow-on offering was by Oi S.A. from
Brazil, raising approximately $1.1 billion.
Trading Volumes
DR trading volumes increased by 18% (or 7 billion DRs) with
46.4 billion DRs traded in 2014 versus 39.4 billion DRs during
the prior year. Most of the increase was due largely to higher
trading volumes of NYSE-listed programs.
In terms of countries, a rise in trading volumes for programs
from Brazil (8.4 billion DRs) was offset by a decrease in
trading volumes for programs from Mexico (1.9 billion DRs).
New Programs
1, 2
There were 4 new programs announced in Latin America:
1 US-listed ADR program on the NYSE and 3 Level 1 ADR
programs. Brazil was the most active country with 2 new
programs coming to market, both Level 1 ADR programs.
Market Performance
Citi Depositary Receipt Services maintains the Latam DR
Index (CLDRLAT) to gauge investor sentiment toward Latam.
In 2014, CLDRLAT dropped by 22%. Since 2001, CLDRLAT
has been one of the best-performing CLDR Indices,
outperforming both the S&P 500 and the Citi World ex-U.S.
by a substantial margin.
With respect to DRs in Brazil, the Financial Operations Tax,
also known as the IOF, on ADR issuances was reduced to 0%.
The IOF tax on ADR cancellations remains at 0%.
We expect that the Brazilian tax and regulatory changes will
continue to boost ADR issuances in the future.
1
For bifurcated programs, Reg S and 144A tranches have been counted as separate programs.
2
Program count as of December 2014.