The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Brazil: Local markets on a roll

Latin nations' equity and debt markets are seeing greater issuance activity

Brazil's capital markets are suddenly looking attractive, at least for corporates seeking new funds. What was once a moribund platform is now evolving into a key source of funding for Brazilian companies, building on the country's new-found economic stability. Eleven companies have tapped the São Paulo Stock Exchange (Bovespa) so far this year, including Brazil's third-biggest private sector bank, Unibanco, while five issues were IPOs.

This builds on last year's activity when 16 companies issued shares on the Brazilian bourse, of which seven were IPOs, one by fast-growing budget airline Gol. According to Alfried Ploger, president of Abrasca, the association of publicly traded companies, Brazil has not seen this level of issuance since before the Asian crisis of 1997. This time, though, the companies are much more solvent. "The next few years are looking quite auspicious," says Ploger. "The Brazilian stock market is enjoying one of its best moments, especially in the secondary market."

 Corporate bonds are also doing a thriving trade, increasing issuance of debentures to about $10 billion in the first six months of 2005, compared with less than $4 billion in the whole of 2004. The maturity of commercial paper is lengthening, moving from just a few months to up 10 and 20 years.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree