Boletim de Mercado de Capitais

Fixed income leads issuances in August

Capital markets raised R$50.6 billion in August, bringing the year-to-date result to R$355.5 billion, up 65% from the same period in 2020. Undergoing offerings and under review amount to R$32.5 billion.

Totaling R$34.1 billion, fixed income had its second-best monthly performance in 2021, only behind May. Debentures added R$20.3 billion, accounting for 40% of the total raised in August. Debenture sales remain above R$20 billion for five months in row. The performance may be explained by the current monetary tightening cycle in Brazil, which has increased their appeal. In the year, debentures have raised just over R$140 billion.Debenture.png

Proceeds from debenture offerings in 2021 are still mostly allocated to working capital (27.2%), infrastructure investment (20.8%) and debt refinancing (18.7%). As for distribution by holders, mutual funds (36.8%) and intermediaries and other participants related to issuances (43.9%) have significantly larger shares than other depositaries. While major subscribers remain the same, there was a relevant change in percentages compared to last year. In 2020, mutual funds accounted for 23.5% of issuances, while intermediaries and other participants for 64.3%.

FIDCs performed well in August, raising R$5.5 billion and reaching R$34 billion in the year, up 43.3% from 2020. There are still R$2.1 billion in FIDCs in the pipeline. With similar performance, commercial papers had their best month in 2021 so far, with R$5.2 billion, more than a third of the total raised in the segment since January.

Share offerings raised R$13.6 billion in August, all through initial public offerings, which marked the second-best month in the year for IPOs, only behind March. Initial public offerings already total R$50 billion in 2021, surpassing the R$45 billion raised in all 2020.IPOs.png

At the end of August, mutual funds accounted for 48.1% of subscribers, followed by foreign investors, with 35.4%. A large chunk was allocated to acquisition of assets and operating activities (43.6%) – in the same period of 2020, such allocation represented only 19.1% of primary offerings.

Share offerings raised more than R$103 billion since January through August from just over R$62 billion in the same period in 2020. Ongoing share offerings total R$12 billion.

 August had no issuances in the overseas market.