<iframesrc=" ns.html?id="GTM-MZDVZ6&quot;" height="0" width="0" style="display:none;visibility:hidden"> Structured product transactions raise R$24.5bn through October – ANBIMA

Boletim de Mercado de Capitais

Structured product transactions raise R$24.5bn through October

Companies increased their funding with structured products in 2017. Through October, offerings of CRIs, CRAs and FIDCs in the domestic market reached R$24.5 billion, up 17.7% compared with the same period in 2016.

Year to date, the most used instrument among structured products is the FIDC, totaling R$9.7 billion in 78 transactions. Although the volume was influenced by a R$5 billion transaction of merchant acquirer Cielo, the year-to-date result is more than double the amount raised in the entire 2016 (R$4.5 billion). This trend suggests that the instrument once again stands out among issuing companies, after two years of retraction. Part of that decline can be explained by the adaptation period of companies to the FIDC’s regulatory changes and accounting rules in recent years, which aimed at increasing security and transparency when disclosing information on the asset.

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The CRAs continue to repeat their positive performance of recent years. Year to date, 46 offerings were carried out, totaling R$9.1 billion, 21.4% more than the amount raised from January through October 2016. The instrument is still highly demanded by individuals, who accounted for 86.3% of underwritings through October.

The only securitization instrument with a weaker result compared to last year’s is the CRI, showing a 36.5% decline in fundraising up to October. The real estate sector’s worse performance and the consequent lack of new collateral for asset structuring are among the reasons for the smaller transaction volume. In comparison to the CRAs, the CRIs have been less demanded by individuals, who accounted for 42.6% of underwritings in 2017, while institutional investors and intermediaries linked to the offerings responded for 43% and 14.4%, respectively.

The remaining assets of the domestic capital market (debentures, equities and commercial papers) continue to outperform 2016, as well as external funding. This shows that, even with some uncertainty about the domestic environment, especially with regard to the progress of reforms and the 2018 electoral scenario, companies now have a better window for transactions. Through October, offerings abroad reached $27.8 billion, 37.5% more than the result for the entire 2016. In October alone, five transactions totaled $6.8 billion. The highlights were the Treasury, raising $3 billion; petrochemical group Braskem, with $1.75 billion; and Banco do Brasil, with $1 billion.

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