{"id":93060,"date":"2025-02-20T16:09:33","date_gmt":"2025-02-20T19:09:33","guid":{"rendered":"https:\/\/murray.adv.br\/?p=93060"},"modified":"2025-02-20T16:09:34","modified_gmt":"2025-02-20T19:09:34","slug":"capital-markets-reach-record-share-in-corporate-debt-levels","status":"publish","type":"post","link":"https:\/\/murray.adv.br\/en\/capital-markets-reach-record-share-in-corporate-debt-levels\/","title":{"rendered":"Capital markets reach record share in corporate debt levels"},"content":{"rendered":"\n<h6 class=\"wp-block-heading has-text-align-center\"><strong><em>Debt issuances account for 33% of Brazilian companies\u2019 liabilities; share more than doubles in ten years<\/em><\/strong><\/h6>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>02\/20\/2025 <\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n\n<p>Capital markets have reached a record share of total corporate debt in Brazil, driven by a surge in fixed-income issuances last year. This share rose to 33% in 2024, up from 31% in 2023, according to a study by consultancy firm FTI commissioned by&nbsp;<strong>Valor<\/strong>.<\/p>\n\n\n\n<p>Looking at a broader timeframe, the shift in corporate debt composition is even more striking. A decade ago, capital market securities accounted for just 15% of corporate liabilities.<\/p>\n\n\n\n<p>The 2024 figures represent a stock of R$2.2 trillion in debt securities, reflecting an average annual growth of 16.6%.<\/p>\n\n\n\n<p>This increased presence of capital market instruments on balance sheets has not only diversified companies\u2019 funding sources but also introduced new challenges in renegotiating debt with creditors. These challenges come at a time when Brazil is experiencing a record number of bankruptcy filings and out-of-court restructurings.<\/p>\n\n\n\n<p>Recent cases, such as Americanas, Agrogalaxy, and Southrock, involved a significant base of retail investors, prompting the need for debt holder organization\u2014an unprecedented development for individual investors generally unfamiliar with restructuring environments or creditor meetings, which are common in these processes. Another significant case involves the supermarket chain St Marche, which filed for precautionary measures to renegotiate debts and has high exposure to Agribusiness Receivables Certificates (CRAs), widely distributed among retail investors.<\/p>\n\n\n\n<p>Eduardo Parente, director at FTI, noted that this trend has changed the dynamics of debt restructuring negotiations, adding a new layer of bureaucracy to processes that often require agility. The debt products that have seen the most growth in recent years are CRAs and Real Estate Receivables Certificates (CRIs), popular among retail investors due to their income tax exemption. \u201cThis made the instrument widely popular,\u201d he said.<\/p>\n\n\n\n<p>Mr. Parente explained that the negotiation dynamics have shifted precisely at a time when restructuring cases are on the rise. \u201cRepresentatives of CRA and CRI holders are more constrained, and the process has become slower,\u201d he said.<\/p>\n\n\n\n<p>Before the rise of these products, companies and their advisors typically negotiated exclusively with bank creditors and foreign bondholders, who are more accustomed to these negotiations and organized for restructuring discussions. Now, companies must also convince thousands of retail investors. \u201cThis complexity brings new bureaucratic and legal challenges,\u201d Mr. Parente added.<\/p>\n\n\n\n<p><strong>Fragmented debt<\/strong><\/p>\n\n\n\n<p>Bruno Tuca, a partner at Mattos Filho law firm specializing in fixed income, noted that over the past decade, capital markets have become a viable financing alternative, helping companies diversify their funding. However, with high interest rates and numerous restructuring cases, the challenge now is how to make renegotiations more fluid. \u201cThe difficulty arose because incentivized securities led to a highly fragmented retail investor base,\u201d he explained.<\/p>\n\n\n\n<p>This fragmentation makes it challenging for companies to gather the necessary quorum for debt renegotiation. In some cases, companies were unable to complete renegotiations because they couldn\u2019t meet quorum requirements. Mr. Tuca noted that this issue is being closely monitored by banks that structure these operations, which are seeking solutions. \u201cThis is the first time we\u2019re seeing this situation.\u201d<\/p>\n\n\n\n<p>Last year, Light faced difficulties in achieving the required quorum for one of its debt issuances while undergoing bankruptcy proceedings. After failing to gather the debenture holders, the issuance\u2019s fiduciary agent approached the Securities and Exchange Commission of Brazil (CVM) to request a reduction in the quorum requirement, arguing that all avenues, including hiring a digital influencer, had been exhausted to reach investors. The regulator partially approved the request, marking another step in an already complex process.<\/p>\n\n\n\n<p>Douglas Bassi, a partner at restructuring consultancy Virtus, illustrated the challenge by recounting a case last year where he had to contact each debenture holder individually to amend a debt contract clause that required a 90% quorum. The process took nearly nine months. \u201cDuring that time, we had to work with the company on a temporary solution,\u201d he said.<\/p>\n\n\n\n<p>The regulatory requirements for incentivized securities add another layer of complexity to restructuring processes. Roberto Zarour, a partner at Lefosse law firm responsible for restructuring, pointed out that regulatory rules prevent incentivized securities from being prepaid, complicating situations where companies need to swap out securities during bankruptcy proceedings. This also limits liability management strategies, such as replacing more expensive debt with cheaper alternatives.<\/p>\n\n\n\n<p>Ricardo Prado, a partner at Lefosse specializing in capital markets, noted that banks and companies are actively seeking solutions to make it easier to gather debt holders for necessary approvals. \u201cOften, a company needs to approve a temporary waiver, but economic conditions change year by year,\u201d he said.<\/p>\n\n\n\n<p>Mr. Prado shared a case where a financially healthy company had to hire nine banks just to gather the necessary quorum, incurring additional costs. \u201cThis is yet another cost that companies have to bear,\u201d he noted.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>*By\u00a0Fernanda Guimar\u00e3es\u00a0\u2014 S\u00e3o Paulo<\/p>\n\n\n\n<p>Source: Valor International<\/p>\n\n\n\n<figure class=\"wp-block-embed\"><div class=\"wp-block-embed__wrapper\">\nhttps:\/\/valorinternational.globo.com\/\n<\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Debt issuances account for 33% of Brazilian companies\u2019 liabilities; share more than doubles in ten years 02\/20\/2025 Capital markets have reached a record share of total corporate debt in Brazil, driven by a surge in fixed-income issuances last year. This share rose to 33% in 2024, up from 31% in 2023, according to a study [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8106],"tags":[25898,25899],"class_list":["post-93060","post","type-post","status-publish","format-standard","hentry","category-murray-news","tag-capital-markets","tag-debt-issuances"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Capital markets reach record share in corporate debt levels - Murray Advogados<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/murray.adv.br\/en\/capital-markets-reach-record-share-in-corporate-debt-levels\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Capital markets reach record share in corporate debt levels - Murray Advogados\" \/>\n<meta property=\"og:description\" content=\"Debt issuances account for 33% of Brazilian companies\u2019 liabilities; share more than doubles in ten years 02\/20\/2025 Capital markets have reached a record share of total corporate debt in Brazil, driven by a surge in fixed-income issuances last year. This share rose to 33% in 2024, up from 31% in 2023, according to a study [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/murray.adv.br\/en\/capital-markets-reach-record-share-in-corporate-debt-levels\/\" \/>\n<meta property=\"og:site_name\" content=\"Murray Advogados\" \/>\n<meta property=\"article:published_time\" content=\"2025-02-20T19:09:33+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-02-20T19:09:34+00:00\" \/>\n<meta name=\"author\" content=\"Gelcy Bueno\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Gelcy Bueno\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/murray.adv.br\/en\/capital-markets-reach-record-share-in-corporate-debt-levels\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/murray.adv.br\/en\/capital-markets-reach-record-share-in-corporate-debt-levels\/\"},\"author\":{\"name\":\"Gelcy Bueno\",\"@id\":\"https:\/\/murray.adv.br\/en\/#\/schema\/person\/dd0d0bea46c2436124555d18c1a0d52e\"},\"headline\":\"Capital markets reach record share in corporate debt levels\",\"datePublished\":\"2025-02-20T19:09:33+00:00\",\"dateModified\":\"2025-02-20T19:09:34+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/murray.adv.br\/en\/capital-markets-reach-record-share-in-corporate-debt-levels\/\"},\"wordCount\":811,\"keywords\":[\"Capital markets\",\"Debt issuances\"],\"articleSection\":[\"Murray News\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/murray.adv.br\/en\/capital-markets-reach-record-share-in-corporate-debt-levels\/\",\"url\":\"https:\/\/murray.adv.br\/en\/capital-markets-reach-record-share-in-corporate-debt-levels\/\",\"name\":\"Capital markets reach record share in corporate debt levels - Murray Advogados\",\"isPartOf\":{\"@id\":\"https:\/\/murray.adv.br\/en\/#website\"},\"datePublished\":\"2025-02-20T19:09:33+00:00\",\"dateModified\":\"2025-02-20T19:09:34+00:00\",\"author\":{\"@id\":\"https:\/\/murray.adv.br\/en\/#\/schema\/person\/dd0d0bea46c2436124555d18c1a0d52e\"},\"breadcrumb\":{\"@id\":\"https:\/\/murray.adv.br\/en\/capital-markets-reach-record-share-in-corporate-debt-levels\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/murray.adv.br\/en\/capital-markets-reach-record-share-in-corporate-debt-levels\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/murray.adv.br\/en\/capital-markets-reach-record-share-in-corporate-debt-levels\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"In\u00edcio\",\"item\":\"https:\/\/murray.adv.br\/en\/home\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Capital markets reach record share in corporate debt levels\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/murray.adv.br\/en\/#website\",\"url\":\"https:\/\/murray.adv.br\/en\/\",\"name\":\"Murray Advogados\",\"description\":\"PLG International Lawyers\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/murray.adv.br\/en\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/murray.adv.br\/en\/#\/schema\/person\/dd0d0bea46c2436124555d18c1a0d52e\",\"name\":\"Gelcy Bueno\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/murray.adv.br\/en\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/1ef2acfe966d6deacdeccd2a24ea89192c41fd05fc60e57b79021358a47f5641?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/1ef2acfe966d6deacdeccd2a24ea89192c41fd05fc60e57b79021358a47f5641?s=96&d=mm&r=g\",\"caption\":\"Gelcy Bueno\"},\"url\":\"https:\/\/murray.adv.br\/en\/author\/news\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Capital markets reach record share in corporate debt levels - Murray Advogados","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/murray.adv.br\/en\/capital-markets-reach-record-share-in-corporate-debt-levels\/","og_locale":"en_US","og_type":"article","og_title":"Capital markets reach record share in corporate debt levels - Murray Advogados","og_description":"Debt issuances account for 33% of Brazilian companies\u2019 liabilities; share more than doubles in ten years 02\/20\/2025 Capital markets have reached a record share of total corporate debt in Brazil, driven by a surge in fixed-income issuances last year. This share rose to 33% in 2024, up from 31% in 2023, according to a study [&hellip;]","og_url":"https:\/\/murray.adv.br\/en\/capital-markets-reach-record-share-in-corporate-debt-levels\/","og_site_name":"Murray Advogados","article_published_time":"2025-02-20T19:09:33+00:00","article_modified_time":"2025-02-20T19:09:34+00:00","author":"Gelcy Bueno","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Gelcy Bueno","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/murray.adv.br\/en\/capital-markets-reach-record-share-in-corporate-debt-levels\/#article","isPartOf":{"@id":"https:\/\/murray.adv.br\/en\/capital-markets-reach-record-share-in-corporate-debt-levels\/"},"author":{"name":"Gelcy Bueno","@id":"https:\/\/murray.adv.br\/en\/#\/schema\/person\/dd0d0bea46c2436124555d18c1a0d52e"},"headline":"Capital markets reach record share in corporate debt levels","datePublished":"2025-02-20T19:09:33+00:00","dateModified":"2025-02-20T19:09:34+00:00","mainEntityOfPage":{"@id":"https:\/\/murray.adv.br\/en\/capital-markets-reach-record-share-in-corporate-debt-levels\/"},"wordCount":811,"keywords":["Capital markets","Debt issuances"],"articleSection":["Murray News"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/murray.adv.br\/en\/capital-markets-reach-record-share-in-corporate-debt-levels\/","url":"https:\/\/murray.adv.br\/en\/capital-markets-reach-record-share-in-corporate-debt-levels\/","name":"Capital markets reach record share in corporate debt levels - Murray Advogados","isPartOf":{"@id":"https:\/\/murray.adv.br\/en\/#website"},"datePublished":"2025-02-20T19:09:33+00:00","dateModified":"2025-02-20T19:09:34+00:00","author":{"@id":"https:\/\/murray.adv.br\/en\/#\/schema\/person\/dd0d0bea46c2436124555d18c1a0d52e"},"breadcrumb":{"@id":"https:\/\/murray.adv.br\/en\/capital-markets-reach-record-share-in-corporate-debt-levels\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/murray.adv.br\/en\/capital-markets-reach-record-share-in-corporate-debt-levels\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/murray.adv.br\/en\/capital-markets-reach-record-share-in-corporate-debt-levels\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"In\u00edcio","item":"https:\/\/murray.adv.br\/en\/home\/"},{"@type":"ListItem","position":2,"name":"Capital markets reach record share in corporate debt levels"}]},{"@type":"WebSite","@id":"https:\/\/murray.adv.br\/en\/#website","url":"https:\/\/murray.adv.br\/en\/","name":"Murray Advogados","description":"PLG International Lawyers","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/murray.adv.br\/en\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/murray.adv.br\/en\/#\/schema\/person\/dd0d0bea46c2436124555d18c1a0d52e","name":"Gelcy Bueno","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/murray.adv.br\/en\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/1ef2acfe966d6deacdeccd2a24ea89192c41fd05fc60e57b79021358a47f5641?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/1ef2acfe966d6deacdeccd2a24ea89192c41fd05fc60e57b79021358a47f5641?s=96&d=mm&r=g","caption":"Gelcy Bueno"},"url":"https:\/\/murray.adv.br\/en\/author\/news\/"}]}},"_links":{"self":[{"href":"https:\/\/murray.adv.br\/en\/wp-json\/wp\/v2\/posts\/93060","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/murray.adv.br\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/murray.adv.br\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/murray.adv.br\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/murray.adv.br\/en\/wp-json\/wp\/v2\/comments?post=93060"}],"version-history":[{"count":1,"href":"https:\/\/murray.adv.br\/en\/wp-json\/wp\/v2\/posts\/93060\/revisions"}],"predecessor-version":[{"id":93061,"href":"https:\/\/murray.adv.br\/en\/wp-json\/wp\/v2\/posts\/93060\/revisions\/93061"}],"wp:attachment":[{"href":"https:\/\/murray.adv.br\/en\/wp-json\/wp\/v2\/media?parent=93060"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/murray.adv.br\/en\/wp-json\/wp\/v2\/categories?post=93060"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/murray.adv.br\/en\/wp-json\/wp\/v2\/tags?post=93060"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}