Boletim de Mercado de Capitais

Volatile scenario hinders fundraising in August

The high-volatility environment affecting economic and financial indicators did not favor issuances on the capital market in August. The total issued was R$6.6 billion, down 68% against the R$20.4 billion seen in July. There was no issuance of financial bills, CRAs and equity instruments neither transactions on the external market.

Debentures issued totaled R$2.4 billion, the lowest volume since February 2017. The same amount was raised through commercial papers that, for being shorter-term securities, are often used as funding instruments in periods of uncertainty. These assets we placed on the market exclusively through CVM Instruction No. 476.

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Out of the only eight debenture issuances in August, the tax-exempt bonds stood out, two from the power industry, issued under Law 12,431. Cia. Energética de Pernambuco (Celpe) raised the largest amount, R$600 million, followed by Argo Transmissão de Energia, whose debenture issuance drew R$455 million.

Despite last month’s result, the domestic capital market shows a better performance in the year through August compared with the same period in 2017: the volume raised amounts to R$149.4 billion against R$112.3 billion, a 33% increase. Of the total raised this year, fixed-income instruments account for 89% compared with a 74% share in the same period of 2017.

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Debentures are the most used instruments, having raised R$95 billion, of which R14.3 billion were raised under Law 12,431. In the year through August, institutional investors held 57.2% of the volume subscribed in debenture-public offerings compared with 64.3% in the same period last year. As for infrastructure debentures, institutional investors raised their share to 48.3% in the first eight months of 2018 against 37.5% in the same period of 2017. Under the same basis of comparison, securitization instruments (CRA, CRI and FIDC) reduced the volume raised to R$12.9 billion compared with R$20.6 billion a year ago.