BBVA guides companies and institutions to success in Latin America

BBVA's 11th Latin America Conference in London focussed on investment opportunities in the region for 2025, with a focus on nearshoring, the energy transition and innovation. Attendees, mostly senior executives from major international investment and asset management firms, gained key perspectives on emerging market dynamics and strategies to maximise return on investment in Latin America.

On January 20,  BBVA held its 11th Latin America Conference in London, the annual meeting of reference for emerging market professionals interested in creating connections between investors and policymakers from the continent. By doing so, the bank brought together executives and experts to address the region's macroeconomic situation, analyse the political-economic particularities of the different Latin American countries and discuss investment opportunities, delving into the advantages of nearshoring and the challenges faced when doing business in this region.

To analyse all these factors and shed light on the prospects for 2025, the institution invited renowned speakers, including Alejandro Werner, director of the Georgetown Americas Institute and former director of the IMF's Western Hemisphere Department (WHD), and Alexandre Schwartsman, former director of International Affairs at the Central Bank of Brazil, as well as representatives from the Central Bank of Mexico (BANXICO), Central Bank of Peru (BCRP), Bank of the Republic of Colombia (BANREP), Central Bank of Chile (BCCh) and Central Bank of Argentina (BCRA).

Alessandra Labombarda, Head of Emerging Markets Sales Europe and the Middle East at BBVA opened the event by stating that "only BBVA, which has a strong presence in Mexico, Colombia, Peru, Uruguay, Venezuela, Chile and Argentina, could create a space for conversation, debate and networking like this." Labombarda explained that "2024 did not meet the expectations we had at the start of last year for local Latin American markets. Despite initial optimism, the region faced some unexpected challenges, but if there is one thing that Latin America has taught us, it is its resilience."

Latin America, a continent of opportunities

At the event, experts agreed that Latin America offers interesting opportunities for investors in 2025, highlighting the significant interest in the infrastructure sector, renewable energies and the growing consumer market. While emerging markets have some volatility, participants agreed that a long-term strategy, based on rigorous analysis and diversification, can generate attractive returns. The region's macroeconomic stability, structural reforms and demographic potential are shaping up as key factors for Latin America's boom in 2025.

Nearshoring, driven by the reconfiguration of global supply chains, is shaping up to be a key driver of growth, attracting investments in sectors such as manufacturing, logistics and technology. Experts noted the importance of understanding the specific features of each country, including regulatory frameworks and political stability, to maximise the potential of nearshoring.

BBVA as a strategic partner in Latin America

Javier Rodríguez Soler, Global Head of Sustainability & Global Head of Corporate & Investment Banking at BBVA, outlined the institution's strategy to bring the opportunities offered by Latin America closer to its customers, highlighting that "40% of BBVA CIB's business is in Latin America. A large part corresponds to Mexico and we are also the biggest international player in corporate investment banking in Peru and Colombia. We also have a very relevant presence in Chile, Uruguay and Brazil, where we have ambitious expansion plans."

Rodríguez Soler listed the pillars on which the bank's business strategy is based, highlighting in the first place the wide sectoral coverage offered by BBVA CIB: "We have our corporate and institutional clients covered thanks to our industry specialisation, having reorganised our teams to ensure that we offer the best possible service to each one. The key is in the expertise of our bankers on the sector in which their respective clients operate." Rodríguez Soler went on to say that "BBVA's DNA is our cross-border presence. We operate in 23 countries and this global presence gives us an advantage when it comes to capturing the growing cross-border business in the current environment".

During his speech, the head of BBVA CIB also pointed out the growing investment in technology. BBVA, which has historically been a powerhouse in innovation, has stepped up its efforts in digital transformation over the last 20 years and is now reaping the benefits, offering differential advantages for companies and institutions. "We are investing heavily in the way we deliver value to our clients with the most advanced data management and we are emphasising the possibilities that generative AI will bring to us, our bankers and our clients to help them navigate the current economic paradigm," says Rodríguez Soler.

Finally, Rodríguez Soler focused on the Corporate & Investment Banking division's holistic approach to sustainability: "In the last six years, BBVA CIB has maintained a firm commitment to sustainability, particularly in the opportunities that decarbonization offers our customers."

At the end of the day, Juan Blasco, Global Head of Institutional Business at BBVA, reviewed the key points of the event, from the effects of inflation to monetary policy responses, opportunities in local currencies and the dynamics of fixed income markets. "Latin America offers very good opportunities for those who want to explore, understand and participate in the region. "At BBVA we are highly committed to the region and we strive every day to be the leading bank there," Blasco added.