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Issuances of companies in the capital market hit record in the first quarterPosted 2021-04-15
The Brazilian capital market experienced the best first quarter in its history in terms of funding this year. According to the Brazilian Association of Financial and Capital Markets Entities (Anbima), the issuance of companies in the country reached a record figure for the first three months of the year of R$ 102 billion.
Variable income reached R$ 33.4 billion, while fixed income and hybrid instruments accounted for R$ 68.6 billion of the total. The growth in funding compared to the period from January to March 2020 was 21.7%.
A very active market despite the pandemic’s upsurge
“The total volume captured is spectacular, the biggest result of the historical series for the period,” said Anbima’s vice president, José Eduardo Laloni, during the press conference on the results.
Variable income increased 7.05% compared to the same period last year. Despite the relatively modest increase, Laloni points out that, among the R $ 31.2 billion raised in variable income in the first quarter of 2020, there is the Petrobras follow-on, which alone moved R$ 22 billion.
Without the oil company’s subsequent offer, share issues this year would have grown by 3.6 times in value compared to the beginning of 2020. “It is normally a more challenging quarter, but it showed a very active market” even with the pandemic’s upsurge.
Laloni also highlighted the fact that the financial volume of initial offers (IPO) has exceeded subsequent ones (follow-on) for the second consecutive quarter. This is a reversal of the trend that has prevailed in recent years.
IPOs totaled R$ 21.8 billion in the period, while follow-ons added R$ 11.6 billion to the total variable income from January to March. In the first quarter of 2020, subsequent offers dominated issues with R$ 27.3 billion against only R$ 4 billion raised in IPO operations.
“It is important to note that the IPOs had great sectoral diversity and volumes raised, showing a much greater capacity to attract investors than we had been having recently,” said the vice president of Anbima.
In addition to the IPOs exceeding the follow-ons, the offerings were predominantly primary. Offers with issuance of new shares reached R$ 20.9 billion compared to R$ 12.5 billion in sales of paper belonging to shareholders.
In fixed income, without considering hybrid products, funding grew 84% compared to the first quarter of 2020. Debenture issuance reached R$ 31 billion in the first three months of 2021, well above the R$ 16.9 billion in the same period last year. “If we compare it with 2019, it has already returned to an emission level of two years ago”, pondered Laloni.
Among the group of hybrids, the largest volumes went to real estate funds (FIIs) and credit rights funds (FIDCs). In the first quarter of 2021, FIIs raised R$ 14 billion, while FIDCs accounted for another R$ 14.8 billion.
Certificates of real estate receivables (CRI) and agribusiness (CRA) had issues of R$ 4.7 billion and R$ 3.1 billion, respectively. The companies raised only R$ 1.2 billion through promissory notes.
In the foreign market, Brazilian companies raised US$ 7.6 billion or R$ 43.5 billion with issues of bonds. “The volume came in line with what we had last year”, pointed out the vice president of Anbima.
Laloni also commented that for this year the entity intends to advance in the discussions for the development of the Spacs market in Brazil and to contribute to the new public offering standard, which will unify the CVM 400 and CVM 476 instructions. “The Spacs are a new product and are coming to Brazil. We started discussions with an internal working group at Anbima. We think it can be a complementary product to the capital structures of investors in Brazil. ”
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