June 19, 2013
The threat of a hike in US interest rates and subsequent EM
selloff has meant a rest for LatAm’s busy debt capital markets. A heavy equity
pipeline has filled up for the June-July window, with issuers eager to get out
while they can. It is now clear not all will make it.
The poor market conditions, along with an aggressive valuation
and poor news coming out of Brazil, have derailed the ambitions of Votorantim
Cimentos. The unit of the Votorantim conglomerate had been targeting 8 billion
After shutting down most of LatAm’s new bond issuance in the last few weeks, the market jitters are now threatening equity deals. Brazilians and IPOs are most at risk.