Brazilian stock and debt sales slumped 45 percent in the first seven months of 2009 as local capital markets reeled from the impact of the global credit crisis, the nation's securities industry association said on Wednesday.
Sales of bonds, stocks and asset-backed securities fell to 46 billion reais ($25.6 billion) in the January-July period, the smallest level for that term in four years, the association known as Anbid said in a report. Sales of fixed-income instruments tumbled 29 percent while initial public offerings plunged 68 percent.
IPOs and offerings of real-denominated corporate debt, including asset-backed securities, led Brazil's capital markets since 2004, but sales slowed to a half last September as the turmoil in global credit markets intensified.
Foreign investors bought 88 percent of the 20.5 billion reais in stock sales carried out in the first seven months of the year, Anbid said. Among these, the 8.4 billion real IPO by VisaNet (VNET3.SA) was the world's biggest in 2009.
Sales of asset-backed notes tumbled to a four-year low, reflecting the toughest capital market conditions in almost eight decades. Companies borrowed for an average 3.7 years, compared with an average 9-year maturity in 2007, Anbid said.
Eighty percent of the amount raised through corporate bond sales went to refinance debt, signaling companies remain cautious over resuming investment, Anbid said. ($1=1.801 Brazilian reais)