Brazilian bankers are pinning their hopes on renewed interest from international investors to drive a recovery in capital markets activity in 2023.
The order book for a rare Brazilian equity capital market issuance in recent months – the R$2.7 billion follow-on for wholesale retailer Assai at the end of November – was dominated by international investors.
Hans Lin, co-head of Brazil investment banking at Bank of America in São Paulo, says he believes greater interest in Brazilian companies’ debt and equity – as well as potential M&A targets – will be a source of strength as activity begins to recover from 2022 lows.
“We have seen international investors looking at Brazil again and, given what has happened in China, with investors getting burned in real estate, and in Russia, with assets effectively frozen, Brazil and Latin America should outperform in terms of emerging markets in the coming years,” says Lin.
He adds that international...
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