Brazil’s corporate issuers have raised $19bn from 14 transactions in the cross-border bond market so far this year, the local capital markets association Anbima said in a report.
In comparison, Brazilian companies raised $8.06bn from nine transactions in the cross-border market in all of 2015. International bond issues in the first nine months of 2016 also surpassed the BRL52.4bn ($16.3bn) in local deals in the same timeframe, Anbima said.
Two Brazilian issuers – Minerva and BRF – sold a total of $1.5bn in cross-border bonds in September. Minerva placed $1bn in 10-year bonds to yield 6.625%, while BRF issued $500m in 2026 notes to yield 4.625%. International debt issues came to $7.9bn in Q3 this year, down from $9.6bn in the previous quarter this year, Anbima said.
Brazil’s banks have not accessed the international bond markets, but companies have raised 84.2% of the total so far this year and the federal government has accounted for the other 15.8%, Anbima said.
Domestic debt deals totaled BRL734m in September, falling from BRL9.06bn in the same month of last year, while local equity offerings dropped to BRL444m from BRL724m. Equity offerings equaled BRL6.7bn from seven transactions in the fist nine months of 2016, compared to BRL17.4bn from five transactions in the same period of 2015, according to Anbima.
Sales of real estate receivables certificates, or CRIs, declined to BRL312m in September this year from BRL524m in September last year. However, CRI sales reached BRL7.5bn in the first nine months of the year, up from BRL7.09bn in the same period last year, Anbima said.
Local securitization firm Grupo Gaia estimates that CRI deals will total BRL12.1bn in 2016, compared to BRL10.9bn in 2015. Gaia also predicts that the sales of agribusiness receivables certificates, or CRAs, will rise to BRL10.1bn in 2016 from BRL5.5bnin 2015.