Brazil’s companies reach out for funds

Much more private-sector activity from Brazil is expected on international capital markets as the privatization programme progresses. Unsecured bond issuance is only part of this expansion. And as hyperinflation becomes a distant memory, the domestic capital market is also growing rapidly. Michael Marray reports.

HSBC goes Latin

Private-sector capital requirements are set for a dramatic upturn in Brazil, principally driven by a privatization programme expected to involve the sale of assets worth more than $80 billion between now and 2000. As well as buyers issuing debt and equity in order to purchase the assets, newly created private-sector companies in capital-hungry industries such as electricity generation and telecoms will quickly embark on ambitious expansion programmes that will require additional financing.

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