Commodity Margins Compress
December 2006, Latin Finance Magazine
By Jude Webber

Liquidity and competition are contributing to lower margins in one of South America's hottest niche markets -- commodity export finance.
 
Carlos Viana, a partner with White & Case's Miami office, says that countries in South America are seeing interesting new facets of the export finance business emerge.  "It depends on how serious banks are about seeking higher yields in exchange for higher risks," Viana states.  Acting for BNP Paribas and BBVA, he recently completed a $60 million export-backed deal for Peruvian fishing company Grupo Sipesa .
 
Viana also predicts that Brazil, Mexico and Chile will see non-blue chip borrowers enter the export finance fray.  "It's no secret in the market that Peru is going to be the source of additional deals," he added.