The international debt capital markets have generated a number of opportunities for investors interested in Brazil. Between January and early April 2012, a total of $24.84bn was raised across 31 deals, against $38.49bn from 57 deals in the whole of 2011. The local market has been relatively active too, with 20 real-denominated debentures worth more than $5bn in the first quarter of 2012 – almost 40% of the total number of issuances in 2011.
“Activity on the primary market has been very strong,” says Alexandre Aoude, Itaú BBA’s global head of fixed income. He says that the international market has benefited from the backlog of transactions that built up when the markets shut down in 2011, as many of these deals have since taken place. Local markets have seen an upturn of activity owing to the increasing number of issuers considering the real-denominated market, which in turn attracts foreign investors and benefits from the liquidity provided by the very banks that structure the deals.
