Companies reinforce cash with R$5.5bn in new borrowing

Brazilian companies raised about R$3 billion in corporate bonds and R$2.5 billion in promissory notes over the last five days. The new funds are mostly reinforcing cash reserves, with the bonds and notes held by coordinating banks. Rates went up between 1 to 2 percentage points from recent issues while maturities are on the decline – most carry one-year maturities. Companies able to keep up the business during the crisis are borrowing below the CDI rate plus 2%, say analysts. The list includes Magazine Luiza (R$800 million), MRV Engenharia and subsidiaries (R$200 million), BR Properties (R$250 million) and Águas de Teresina Saneamento (R$102 million). Rodovias Integradas do Oeste, a highway concessionaire, raised R$430 million while ViaMobilidade, which operates two subway lines in São Paulo, borrowed R$700 million with tax-exempted infrastructure bonds. Ecorodovias led the way in promissory notes with a R$1.2 billion, two-year loan at the CDI plus 4%.

Source: Valor Econômico