São Paulo – The lack of investment opportunities in the global market helped Brazilian companies increase foreign bond issues early this year. A bulletin by the National Investment Bank Association (Anbima), disclosed on Wednesday (7), shows that fundraising on capital markets abroad grew 50% in the last two months as against the same period in 2011, reaching US$ 16.8 billion.
“Capital is voracious for some kind of interesting investment and Brazil is currently a glowing point in the universe,” said Adriano Gomes, a consultant at Méthode Consultoria Empresarial and also Finance professor at the Higher School of Advertising and Marketing. According to the specialists, due to the lack of perspectives in developed nations, international capital, even in the Arab world, is seeking new investment.
The vice president at Anbima, Alberto Kiraly, said that among the causes for the greater fundraising abroad is the lower perception of global risk, due to a better addressing of the economic problems in Europe. “The perception of global risk has fallen much and that has resulted in investors seeking assets,” he said, recalling that in this scenery, Brazil is prominent due to the growth of the country’s economy.
Kiraly recalls that the total raised up to the second month of the year is already almost 50% of all Brazil raised in capital markets abroad in 2011. In February alone, the volume of funds raised more than doubled, reaching US$ 11.6 billion, according to the Anbima. Offers made by Brazil were in fixed income, with the issue of Medium Term Notes. The values include government, corporate and financial institution issues.
Apart from the government, 16 companies and banks sought funds on the foreign market: Vale, Bradesco, Banco do Brasil, Itaú Unibanco, Odebrecht, JBS, Braskem, Banrisul, CSN, Petrobras, Votorantim Cimentos, Virgolino de Oliveira (ethanol), Minerva, Brasil Telecom and Santander.
The higher Tax on Financial Operations (IOF) levied on foreign funds, announced by the government early this month, should not affect these operations, as they are longer term operations, normally for five to ten years. In early March, the 6% IOF that was levied on two-year operations was extended to three years. The objective is to inhibit the inflow of dollars into the country.
*Translated by Mark Ament
