<iframesrc=" ns.html?id="GTM-MZDVZ6&quot;" height="0" width="0" style="display:none;visibility:hidden"> Brazilian companies raise 30.3% more in first half – ANBIMA

Boletim de Mercado de Capitais

Brazilian companies raise 30.3% more in first half

Brazilian companies raised 30.3% more funds in the first half of 2017 compared to the same period last year, both in the local and international capital markets. Bond sales abroad were the main source of funds for companies in the first six months of 2017 (R$51.3 billion), raising, in reais, 30.6% more than the volume seen in the first half last year.

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Stock offerings also stood out in the period and raised R$13.13 billion, mainly driven by the increased number of transactions. In the first six months of 2017, eight offerings were carried out, while in 2016 there were only four transactions of this type.

Issuances of fixed-income securities and securitization instruments also showed positive performance, albeit in a weaker pace, up only 7% on the same basis of comparison.

Among debentures, although assets’ average maturity remained at 4.4 years, the same length of 2016, the share of assets with longer maturities rose, especially from 4 to 6 years, which accounted for 32.6% of the total. In addition, there was a significant increase in underwriting of assets by institutional investors, which accounted for 63.5% of purchases in the offerings carried out in the period — in the first half of 2016, that share had been only 10.3%. Meanwhile, there was a decrease of almost the same size in underwritings by intermediaries and participants related to the offering. Whereas in the first half of 2016 they had bought 87.9% of the debenture offerings, in the same period of 2017 that percentage was only 34.6%. This trend reflects stronger investor demand for corporate bonds, mirroring the current falling trajectory of interest rates, as well as a greater efficiency in the asset-distribution process, which tends to have a positive impact on the secondary market.

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