2023-10-26 17:28:56
Due to an improvement in the capital market, Brazilian companies are taking advantage of the moment to begin raising funds that should reach a total of R$40 billion through share offerings on the Stock Exchange (B3) and debt securities issues on the local and foreign market, according to an investigation by the newspaper O Estado de S. Paulo.
Most of these resources are being used by companies to pay debts, but companies such as Suzano, CSN, Localiza and Direcional plan to raise money for investments and expansion plans.
Recently, Petrobras issued US$1.25 billion (R$5.95 billion) in 10-year bonds, paying investors a rate of 6.625%. The operation follows that of Cosan, which raised US$550 million in 7-year bonds. Brazilian companies spent several months without accessing resources abroad due to external and internal factors.
“We understand that this is a time for the resumption of credit in international financial institutions and in Brazil”, assesses Luciano Bravo, CEO of Commercial Intelligence and Country Manager at Savel Capital Partners.
Pause in interest rate hikes
The reopening of the capital market window accelerated an operations schedule that was expected for the second half of the year. In the United States, in September, the Federal Reserve (Fed, the American central bank) decided to pause interest rate hikes and, in the financial sector, the failures of American or European banks, which scared investors, stopped happening.
“International financial institutions and the Brazilian government started to curb the rise in interest rates, this allows businesspeople to resume their search for credit to grow once more or even pay off debts, and then invest in their operations”, says Bravo.
In the domestic scenario, several factors have driven the improvement of the Brazilian market. This includes the change in the perspective of Brazil’s risk classification by Standard & Poor’s (S&P), a reduction in the inflation rate, the approval of the fiscal framework in the Chamber of Deputies and the anticipation of the expectation of a reduction in interest rates, which has led future rates to decline.
“Brazilian medium-sized companies through ACI can participate in the future of this share if they choose to internationalize, in addition to preparing themselves to raise funds like large companies do”, says Luciano Bravo.
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