December 30, 2016 | Cbonds
Dear Cbonds users! We are pleased to inform you that the Cbonds database now has information on Brazilian domestic corporate bonds (http://cbonds.com/countries/Brazil-bond). A total of 1,063 Brazilian domestic corporate bond issues are available on Cbonds.
The Brazilian corporate bond market amounts to an equivalent of USD 123.7 bn with the majority of issues denominated in the country’s national currency Brazilian reals (BRL). Just 1.4% of bonds is denominated in USD and EUR. The market offers bonds of different tenors, including perpetual bonds.
In Brazil, the coupon is almost always linked to a reference rate. The most popular rate is the interbank deposit rate DI calculated by the central registrar and fixed income instrument depository CETIP.
A distinctive feature of the Brazilian corporate bond market is the fact that issuers are non-banking institutions. Banks resort to other instruments for raising financing, though their subsidiaries (e.g. leasing companies) can tap the bond market. Key issuers in the Brazilian domestic corporate bond market are energy companies (primarily electric power companies) and public utility services companies, as well as toll road operators working under concession agreements.
Interest rates in the Brazilian bond market are largely in the range between 13% and 18%. Interest rates in the Brazilian economy in general have been going down in 2016 after their continuous growth in 2015 against the backdrop of accelerating inflation and the worst GDP dynamics in 25 years. Compared to 2014, GDP lost 3.8% due to slumping prices in the commodities market, as well as corruption scandals and political uncertainty.
A signal of improving economic conditions in the country may be seen in Brazil’s central bank cutting its key interest rate SELIC by 0.25% twice in October and November 2016. Prior to this the rate was kept at 14.25% for 1.5 years.
All bond issue pages feature the bond calculator, key issue parameters and the payment schedule.