Boletim de Mercado de Capitais

Petrobras debenture offering stands out in February

Capital-market offerings raised R$8.8 billion in February, down 40% from the previous month. In the year-to-date result, funding amounted to R$23.4 billion compared with R$18.8 billion a year earlier. In the first two months of 2019, there were 84 transactions against 92 in the same period last year. Debentures accounted for 51% of domestic issues in February, raising R$4.5 billion; follow-on offerings came next with a 29% share (R$2.5 billion), while Real Estate Investment Funds (FII) accounted for 8% of the total and raised R$657 million.

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It is worth noting that, in February, debenture offerings through Instruction no. 400 surpassed issuances under Instruction no. 476 for the first time since February 2013. The result was driven by a single transaction, with Petrobras raising R$3.6 billion through a debenture offering and accounting for about 80% of all issuances with this instrument. In the year to date, debentures represent 39% of domestic funding; follow-ons and FII come next with 19% each.

The tax-exempt debentures, issued through Law 12,431, raised R$3.1 billion in February, totaling R$3.3 billion in the year to date. The Petrobras’s offering had the lion’s share, with R$2.6 billion.

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In the public debenture offerings for the first two months of 2019, institutional investors held the largest share with 59.8% compared with 44.4% in the same period last year. Intermediaries and participating institutions linked to the offering held 29.8% of the volume offered compared with 50.2% in the first two months of 2018. In the issuances via Instruction no. 476, the institutional investors’ slice is even more relevant, corresponding to 63.6% of the total.

Like in January, there was a single transaction overseas, with the $600 million bond sale of BTG Pactual. In the year to date, the amount raised abroad reached $1.35 billion compared with $9.1 billion in the same period of 2018.