International markets gobbled up last week US$1.2bn worth of senior unsecured bonds issued by Brazilian civil engineering firm Camargo Corrêa’s, local daily Valor Econômico reported.
The company had planned to issue US$250m in bonds but received unexpected interest from international investors.
"There is an enormous expectation amongst international investors that Brazil is becoming an investment grade country," the paper quoted José Olympio Pereira of Credit Suisse Brasil as saying. Credit Suisse Brasil conducted the operation in conjunction with BNP Paribas.
Among investors, 18 per cent were Latin American entities, 39 per cent European and 40 per cent from the US pension funds purchased six per cent of the bonds, mutual funds 49 per cent, banks 32 per cent and private companies five per cent.