New Normal Is Selling Old Debt as Issuance Surges: Brazil Credit
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Brazilian companies led by Itau Unibanco Holding SA and Petroleo Brasileiro SA are selling more of their existing bonds in a bid to access international credit markets faster amid a decline in borrowing costs.
Eight out of 16 overseas corporate bond offerings from Brazilian companies this year have been so-called re-openings, up from eight in all of 2011, according to data compiled by Bloomberg. The average yield on dollar debt sold by Brazilian companies has dropped 26 basis points, or 0.26 percentage point, this year to 5.9 percent, the lowest since August, according to JPMorgan Chase & Co. Borrowing costs for Mexican companies fell 24 basis points in the same period to 6.05 percent.