annual report - Hypo Real Estate Holding AG

Transchile for a transmission line linking the regions of
Temuco and Charrua. Other financings include Metro
de Santiago and motorway concessions for Autopista
del Maipo and Autopista Central.
In both Colombia and Uruguay, DEPFA participated at
the primary level in Japan Bank for International
Co-operation (JBIC) guaranteed transactions for the
sovereigns and selectively has built up a small port -
folio of sovereign/public sector assets in Peru and
Colombia.
In Argentina the Bank established a sustainable business
platform with various banks – both public and
private sector – consisting of financial structures with
relatively short-term maturities. Additionally, and taking
advantage of DEPFA’s expertise, the Bank is in close
contact with leading local and international firms involved
with the infrastructure development program.
Throughout the region (and particularly in Brazil, Chile
and Argentina) DEPFA is actively involved in repo/
reverse repurchase transactions through its Capital
Markets Group mostly with public sector-owned and
central banks and in all cases with government bonds
as collateral. Unlike as recently as 2 years ago, when
DEPFA was totally unknown in the region, the Bank
has managed to establish an active presence in a
number of key countries in South America in its
chosen fields with important client relationships
developing and an active deal pipeline built up.
For 2008 DEPFA has a series of significant transac -
tions coming (partly mandated pending implementa -
tion) on the origination-distribution side for public sector
assets (infrastructure related, sovereign and subsovereign),
through the Structured Export Finance
group (particularly in Brazil) with untied transactions
through JBIC (which is owned by the Japanese
Government) which guarantees a significant part of
the exposure, as well as in the area of infrastructure
finance, here particularly on the advisory side and
related to road projects.
The establishment of DEPFA’s Mexican presence is set
to be completed by mid-year and it will provide the
Bank with an entry into a country where there already
is a solid finance market for the public and infrastructure
sectors and where substantial growth is expected
in the next few years. The Bank’s Mexican office will
also serve as a platform for the origination of business
in Central America and the Caribbean basin.
Last but not least DEPFA is involved in a number of socalled
private finance and PPP initiatives throughout
the region in the context of which the Bank is supporting
major international contractors at a very early
stage in the development of proposals for infrastructure
projects at state or sovereign level putting the Bank
in a good position to get involved in the advisory work
and the arrangement and ultimate financing of these
projects when they materialize.
Thus, combined with the Bank’s new initiative for
Mexico and the mix of current, pipeline and longerterm
prospective business, it believes that it is well
positioned for doing profitable, value added business
in Latin and South America in the coming years.
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