Capital markets in Brazil issued R$463.7 billion last year compared to R$544.77 billion in 2022. In the first half, the volume raised totaled R$154.1 billion, with the amount nearly doubling in the second half, to R$309.6 billion. In December alone, issuances reached R$74.48 billion, the highest for a month in 2023, driven by corporate debt and securitization instruments. The market has become stronger in recent years, especially due to more liquidity in the secondary market, and was helped by falling interest rates in the second half, which played a key role for the sector’s recovery after July.

Fixed income represented 91% of issuances in December, led by Debentures (R$39.7 billion), Real Estate Receivables Certificates - CRIs (R$9.1 billion) and Agribusiness Receivables Certificates - CRAs (R$7.6 billion).

With their funding in December, debentures raised R$236.3 billion in the year. Ordinary Business Management and Infrastructure Investment received the most proceeds in asset allocation, representing 34.4% and 30.9%, respectively. For December, proceeds raised were mainly allocated to Debt Payment (24.8%), Ordinary Management (20.2%) and Cash Replenishment (14.6%).

Debentures’ average maturity was 7.61 years in December. Throughout 2023, the average maturity rose to 8.58 years compared to 6.25 years in December 2022.

In securitization instruments (CRIs, CRAs, Receivables Certificates – CRs and Credit Receivables Investment Funds – FIDCs), issuances in December reached R$23.34 billion, showing investors’ appetite for tax-exempt assets. Issuances of CRIs totaled R$9.1 billion, the best monthly performance in 2023, slightly below the R$9.6 billion raised in December 2022. Among other securitization instruments, CRAs raised R$7.6 billion, FIDC (R$6.7 billion) and CRs had no issuances.

Issuances of hybrid securities (FIAGRO and FII) amounted to R$6.6 billion in December, comprised of R$5.7 billion from FII and R$878 million from FIAGRO. The FIIs and FIAGROs issued in December had individuals as their largest buyers, accounting for 59% and 78%, respectively, and confirming their importance for such assets.

In equity, only primary offerings were issued, amounting to R$400 million in December, with R$31 billion raised through both primary and secondary offerings in 2024. Proceeds raised in the year were mostly allocated to Ordinary Business Management, or 58.3%, followed by investments with 21.7% of total shares issued.

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