Debenture offerings surpass R$2.2bn after holiday break

At least four companies to conclude deals this week; others expected in May

Neonergia Pernambuco, Mineração Morro do Ipê, Cirklo, and Autogeração Solar are finalizing issuances this week — Photo: Marcello Casal Jr/Agência Brasil/Arquivo

Following the extended holiday weekend, at least four companies are set to conclude debenture offerings totaling R$2.27 billion. Neonergia Pernambuco, Mineração Morro do Ipê, Cirklo, and Autogeração Solar are all finalizing their issuances this week.

Two additional companies—Cielo and Votorantim Cimentos—have ongoing offerings but are expected to wrap them up in May. Cielo is aiming to raise R$3 billion, while Votorantim Cimentos plans to issue R$1 billion.

Among the deals set to close this week, the largest comes from Mineração Morro do Ipê. The mining company, controlled by Mubadala and Trafigura, manages operations in the Serra Azul region, which includes the municipalities of Brumadinho, São Joaquim de Bicas, and Igarapé in Minas Gerais.

The company is seeking R$1.02 billion through seven-year debentures. Part of the issuance will offer returns of CDI (Interbank Deposit Certificate) plus 3.27%, while the remainder will pay CDI plus 2.45%. Settlement is scheduled for April 25.

Neonergia Pernambuco plans to issue R$700 million in tax-exempt debentures, which offer income tax exemption for individual investors. These seven-year bonds will also be settled on April 25, although the final yield has not yet been defined.

On April 24, special-purpose company Autogeração Solar is set to complete a R$330 million offering of 18-year tax-exempt bonds. The proceeds will be used to build a photovoltaic plant.

Cirklo, a company focused on plastic recycling, will launch its first debenture offering in the market, raising R$220 million. The notes are labeled as green bonds. Proceeds will go toward debt refinancing and strengthening the company’s cash position, with a commitment to allocate the same amount to green projects. Settlement is expected on April 22.

*By Rita Azevedo, Valor — São Paulo

Source: Valor International