SAO PAULO, July 8 (Reuters) - Sales of debt and equity offerings in Brazil slumped to their lowest for the first half of the year since 2010 as rising borrowing costs, a sluggish economy and mounting political turmoil kept potential buyers on the sidelines, industry group Anbima said on Wednesday.
Domestic offerings of shares and debt excluding leasing notes totaled 53.45 billion reais ($4.7 billion) in the January-to-June period, down from 81.12 billion reais a year earlier, Anbima, a group that represents investment banks in the country, said in a report.
In global markets, bond offerings by Brazilian companies plunged about 82 percent to $7.58 billion. The number is the lowest since at least 2009, Anbima noted.
Investors expect interest rates to end the year at a nine-year high, as the central bank seeks to head off annual inflation that is running at twice the official target. Fallout from a corruption scandal involving key ruling coalition members is fanning concern about the government’s ability to cut spending and attenuate the impact of a likely recession.
“We have a very different macroeconomic and political outlook than in recent year, so the numbers reflect some aprehension from the viewpoint of investors,” Carolina Lacerda, a director in Anbima’s investment-banking division, said in a conference call.
Dozens of deals stalled in the first six months of the year because of mounting economic and political turmoil. While advisory work has remained rather intense in the period, banks are finding it harder than usual to finalize transactions, she noted.
$1 = 3.2163 Brazilian reais Reporting by Guillermo Parra-Bernal Editing by W Simon