UPDATE 1-Anbima sees Brazil state IPOs boosting offerings this year
(Recasts to add comments, outlook for rest of the year in paragraphs 1-6)
By Guillermo Parra-Bernal
SAO PAULO, July 8 (Reuters) - First-half sales of debt and equity offerings in Brazil this year slumped to their lowest since 2010, but a slew of initial public offerings in state companies should boost the year-end total, industry group Anbima said on Wednesday.
While rising borrowing costs, a steep downturn and mounting political turmoil kept potential buyers on the sidelines during the first six months, investors could return to domestic capital markets with a number of state IPOs, said Carolina Lacerda, a director in Anbima's investment-banking division.
So far, reinsurer IRB Brasil RE SA and the insurance unit of state-controlled Caixa Econômica Federal have picked a group of investment banks to help manage their offerings, sources told Reuters in recent weeks.
Flagging placements of debentures, promissory notes and other fixed-income securities in the domestic markets may recover partly due to efforts by state development bank BNDES to stimulate the purchase of those investments, she added.
Anbima, a group that represents investment banks and asset managers in the country, hopes capital markets activity will revive after a very weak start to the year. Dozens of deals stalled this year because of mounting economic and political turmoil.
While advisory work has remained rather intense in the period, she said, banks are finding it harder than usual to finalize transactions.
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 said in a report. Continuación...