Tale of Eldorado does little to dampen Brazilian bond allure
* $14.5 bln of Brazilian corporate bonds issued in 2016
* Issuers from meatpackers to ethanol producers
* Bonds seen as good value, but due diligence crucial
By Claire Milhench and Ana Mano
LONDON/SAO PAULO, Sept 21 (Reuters) - Eldorado may offer a cautionary tale for investing in Brazilian bonds, yet a 20 percent fall in the pulpmaker's debt since it borrowed $350 million in June has not reduced appetite for the country's corporate credit.
Investors in Eldorado's bonds were caught out by the country-wide corruption probe which spread to the company and its parent firm earlier this month, a setback that typifies the risks of investing in Brazil.
However, fund managers say Brazilian companies, even those with junk ratings, still have a fair chance of raising money.
Once prolific issuers, Brazilian firms have been largely shut out of bond markets for about 18 months, hurt by corruption scandals, weak commodity prices and economic recession.
Now they are exploiting the favourable conditions created by a flood of money into emerging market debt funds. Continuación...