Chile fills equity pipeline

Chile fills equity pipeline

Equity Economy & Policy Corporate & Sovereign Strategy Capital Markets Chile Brazil

As many international investors pin their hopes on Brazil's far-right president, Jair Bolsonaro, Chile's stock market could see a record number of IPOs in 2019, LatinFinance has heard.

"In Chile, the ECM market is smaller, but there is less uncertainty," an equity capital markets source said. 

Cencosud could set a high mark in Chile this year, with Bank of America Merrill Lynch and JPMorgan leading an IPO for the retail company in March of April, the source said.

Other deals in Chile's equity pipeline include a possible $1bn transaction, a couple of share sales worth between $300m and $400m and a few more for less than $100m, the source said.

In Brazil, meanwhile, the market's prospects hinge upon pension reforms, the source said. 

"Investors are 80% there. They just need a bit more clarification on the reforms," the source said.

Bolsonaro has said he wants to raise the minimum retirement age to 62 for men and 57 for women, lower than the proposals of his predecessor, Michel Temer.