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.
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.
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.