January 28, 2023
Fixed income steals the show in Q1 with highest funding since 2012, says Anbima - Money Times

Fixed income steals the show in Q1 with highest funding since 2012, says Anbima – Money Times

The best moment for Q1 fixed income since 2012, according to data released by Anbima this Tuesday (Image: Reuters/Bruno Domingos)

The volume of financing in the first quarter of the year amounted to 105.2 billion Brazilian riyals, according to a statement Anbema (Brazilian Association of Financial Entities and Capital Markets) This Tuesday (12). But who stole the show? fixed income.

The amount exceeds R$102.8 billion raised in the same period of 2021 and sets a new record in the association’s historical series.

Fixed income alone is responsible for R$89.1 billion (84.7%) of the total funding volume, with a potential R$19.7 billion increase resulting from the ICVM 400 offerings in progress or under analysis.

Jose Eduardo Looney, Vice President of Anpima, notes that the international scenario played an important role in the Q1 fixed income result.

“We have an unfavorable scenario for issuing bonds in the external market, Given the anticipation of accelerating interest rate increases in the United States of America, to strengthen the real instability resulting from war in ukraine“, He says.

For him, this encouraged companies to raise capital in the local market, primarily through bonds.

Companies swap IPOs for bond issues

Diagram with several IPOs in the foreground.  In the background a city with many skyscrapers
While the number of companies that started in the stock market decreased, on the other hand, bond issuances rose, ensuring that companies raised money (Photo: Shutterstock)

The result of the first quarter was reinforced by the issuance of bonds, which set a new record for this period, as it transferred 55.9 billion Brazilian riyals. The value is nearly double compared to the first three months of the previous year.

At the same time, the period was marked by drought in a number IPOs (Initial public offering of sharesin Portuguese), when a company launches shares in stock trading.

“We saw a greater appetite for corporate bond investment funds in this first quarter, especially for catalytic bond bonds, which contributed to an increase in the volume of bonds traded in the secondary market to reach R$62 billion. This volume is higher than the volume traded at the beginning of 2020 and 2021,” Laloni comments.

Five bond offerings emerged, raising a combined R$18.1 billion. The issuers were:

Clear (4.3 billion Brazilian reals);

tropical (EQTL3) (4 billion Brazilian reals);

Iguá RJ (4 billion Brazilian reals);

CCR (CCRO3) (3.4 billion Brazilian reals); And

Locate (RENT3) (2.5 billion Brazilian reals).

The best months for the bond market are February and March. In each, these company’s bond offerings have raised more than R$24 billion.

View the full capital markets prospectus: