August 1, 2019 |
When Localiza needed to raise funds earlier this year, the Belo Horizonte-based car rental company turned to Brazil’s debenture market. It was a familiar venue. Since 2017, the company has raised R$6.6 billion through eight separate debenture issues. In April, Localiza issued its latest, a R$1 billion debenture, swapping expensive debt for better terms.
“We are growing fast, and we are frequently accessing capital markets to fund the expansion of our fleet,” says Mauricio Fernandes Teixeira, the CFO at Localiza. explaining why he turns to this unsecured segment of the debt market for financing. Last year, Localiza’s rental volume increased by 39%.
And if a company has no need for foreign cur
Lower interest rates, better terms attract corporate issuers and investors