Santander Brasil revamps investment banking with new hires

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SAO PAULO (Reuters) – Banco Santander Brasil (SA:) is making new hires as part of a revamp of its investment banking business in an effort to gain market share.

Gustavo Miranda, the new head of investment banking at the bank, has hired Renato Boranga, who was formerly at Moelis & Co (N:), as head of mergers and acquisitions.

Miranda, who became head of investment banking in October, has also appointed Pedro Leite da Costa, previously at Goldman Sachs (N:) and advisory firm One Partners, as head of equity capital markets (ECM).

Capital markets activity has reached the highest levels in a decade in Brazil this year and is expected to reach record levels next year.

“We intend to finish 2020 in leading positions at the equity league tables,” said Miranda. Santander Brasil, part of Banco Santander (MC:), currently ranks 8th in Refinitiv’s Brazil equities league table.

Miranda expects more initial public offerings among mid-sized Brazilian companies as well as share offerings by state-controlled companies.

Brazilian investors are migrating from fixed income to equities because of record low interest rates. Miranda said new asset management firms had set up and were seeking to invest in local small cap companies.

Miranda has also appointed Giovanni Bosco as head of energy banking, including M&A and ECM. He was previously at the bank’s project finance unit.

The 2020 outlook for mergers and acquisitions is also positive, Miranda said, saying he expects higher volumes next year.

“Proceeds from share offerings will probably be used in acquisitions,” he said, adding that privatizations should also generate large deal volumes.

Santander Brasil is ranked 4th in Refinitiv’s Brazil M&A league table this year, after advising state-controlled oil company Petrobras (SA:) on some of the largest deals of the year, such as the $8.6 billion sale of pipeline network company TAG and the $880 mln divestiture of LPG distribution unit Liquigas.

Santander Brasil’s main focus has been on retail banking for the past few years. Under Chief Executive Officer Sergio Rial, the bank gained market share with its consumer loan book growing faster than competitors.

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