Award ceremony in London: from left, Alvaro Novis, Marcos Lima, Peter Stevenson, Michael Yang and Vinício Fonseca
OCS team receives award in the UK
On June 19, in London, members of Odebrecht Administradora e Corretora de Seguros (OCS) received the Deal of the Year award from Trade Finance magazine, part of the Euromoney group, for a surety bond operation worth USD 400 million for Construtora Norberto Odebrecht projects in Latin America. This ground-breaking transaction involved the participation of the Inter-American Development Bank (IDB) and the American International Group, Inc. (AIG).
There were 322 entries, and 64 financial operations from 33 countries received the award at the gala dinner. This was the first time a Brazilian insurance deal had won the award since its inception in 1999.
“This deal reached with the IDB and AIG will make it possible to increase the market’s bonding (surety bond) capacity at a time when that capacity is very limited,” explains Alvaro Novis, the Odebrecht S.A. Director Responsible for Finance. According to Marcos Lima, the General Director of OCS, this operation also unveiled an alternative market with greater insurance capacity that can leverage other businesses and construction projects. “For OCS, this attests to what we can achieve through persistence, determination and creativity,” he says.
Vinício Fonseca, the OCS officer Responsible for Structured Projects, spearheaded this operation. He says that the IDB has an important social and economic mission and realized that Odebrecht is an agent of economic and social development, because it takes part in key infrastructure projects.
The IDB is the main source of financing for long-term development programs in Latin America and the Caribbean. Peter Stevenson, the IDB project team leader, helped structure the deal: “We have been fortunate to work on this project with two of the best names in the business world in their respective industries: AIG and Odebrecht,” he says.
This award-winning surety bond transaction has set an example for other sectors of the market. Michael Yang, from AIG’s New York office, also helped put the deal together. He believes that this new instrument is a “milestone” for his company. “It will help Odebrecht carry out its activities in South America while also helping other Brazilian companies doing business in that region.”