The pace of debenture issuance has picked up this month amid strong demand for fixed-income securities, especially tax-exempt ones. Currently, 26 companies have active offerings, with ten of them expected to raise at least R$1 billion each. Among those preparing to close deals in the coming weeks are water utility Sabesp, industrial group Randon, car rental firm Localiza, and several highway concessionaires. Altogether, the offerings could total R$22.5 billion.
“With the fiscal turbulence that affected capital markets now behind us, we’ve seen a strong volume of debenture issuance in July, particularly from frequent issuers. We expect the new semester to begin with more record activity, as companies rush to raise funds before the end of 2025,” said Mariana Pollini, a partner in the capital markets practice at law firm Lefosse Advogados.
Sabesp announced plans this week to raise R$1 billion through 10-year debentures, its third issuance of the year. The transaction is scheduled to settle on July 30.
Randon is preparing to issue R$1.1 billion in bonds maturing in five and seven years. The company said the proceeds will be used to strengthen its cash position and manage risk, including early redemption of a previous issue and repayment of a bilateral loan maturing in 2027.
Localiza is expected to price its R$1.5 billion issuance on Monday, with the volume potentially reaching R$1.8 billion if the additional lot is sold. The vehicle rental company plans to use the proceeds to repurchase four existing series of debentures.
Highway sector takes the lead
Among the ten R$1 billion-plus deals expected in the coming days, four involve highway concessionaires—a segment poised to increase its share in overall corporate bond issuance, said Guilherme Maranhão, head of the capital markets structuring forum at the Brazilian Financial and Capital Markets Association (ANBIMA).
“Considering the pipeline of auctions and concessions, many are scheduled in the highway sector, which could boost its importance in upcoming deals,” he said.
The largest transaction is CCR Autoban’s R$2.5 billion issue, split between 7- and 12-year maturities. Part of the proceeds will go to infrastructure projects, while the rest will be used to repay debt early. The offering is set to settle on July 28.
Ecorodovias is finalizing terms for a R$2 billion, 7-year issue, with pricing scheduled for August 4. Investor meetings began last week. Proceeds will go toward early repayment of existing bonds.
Via Appia is also aiming to raise R$2 billion in 7-year bonds to pay down debt and strengthen liquidity. The deal is expected to close by next week. Way, which operates highways in Mato Grosso do Sul, plans to issue R$1 billion in tax-incentivized bonds maturing in 20 years.
In the energy sector, Cesp began investor presentations on Wednesday (23) for a R$2.1 billion issue. Bookbuilding is scheduled for August 12, with settlement on August 14. The proceeds will be used to bolster cash reserves. The bonds will mature in seven years.
Renewable energy producer Auren is preparing a R$1.15 billion tax-incentivized issuance. Investors have until August 11 to evaluate the offering, with pricing set for August 12.
Origem Energia, an independent natural gas producer, launched its roadshow on Wednesday for a R$1.4 billion offering. Pricing is scheduled for August 12. The funds will be used for projects in oil and gas hubs in Bahia and Alagoas. The securities will be tax-exempted.
In the first half of the year, debenture issuance in Brazil totaled R$192.6 billion, compared with R$206.7 billion in the same period of 2024, according to ANBIMA.
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