IOF Move Double-Edged for Brazilian Issuers

IOF Move Double-Edged for Brazilian Issuers

Brazil Economy & Policy Corporate & Sovereign Strategy

Although the markets have largely applauded Brazil’s decision to axe the IOF tax, the move presents challenges for Brazilian issuers. In particular, DCM bankers say the global-BRL trade and the prospects of selling infrastructure debentures abroad will suffer. “This kills the global-BRL market for a while,” says a Brazil focused DCM banker, as the bonds’ popularity was due to avoiding the tax. Though global-BRL bonds were successfully sold prior to the IOF’s inception, bankers note the market is

Already have an account?

Free trial

Take a free two-week trial now for the latest news, data and market analysis.

Free Trial