So far in April, issuances in the long-term corporate debt market in Mexico have fallen, so if this trend continues, a significantly lower monthly closing is expected when compared to the same month in 2021.
Financing in said market totaled 4,963 million pesos between April 1 and 19 and, according to requests, for the remainder of the month only the placement of bonds for up to 2,000 million pesos is expected by Navistar Financial, a company Multiple Purpose Financing that grants financing for the acquisition or leasing of trucks.
“Taking into account what has been placed to date, the amount issued in April would remain well below what was observed in the same month of 2021, by approximately 68%, based on an adverse calendar effect, as well as uncertainty in the markets. due to geopolitical tensions and persistent inflationary pressures,” said Manuel Jiménez, Director of Market Strategy at Banorte.
In April of last year, the companies raised resources for 21,555 million pesos and it is estimated that in this month the emissions will reach around 7,000 million pesos.
For May there are applications that in total represent a goal of 7,350 million pesos of collection, with the issuance of Fortaleza Materials, formerly Elementia, for up to 2,000 million pesos, which it will use to finance its public offer for the acquisition of shares that is currently in progress. process and with which it seeks to delist from the Mexican Stock Exchange.
José Manuel Allende, deputy general director of Issuers, Information and Markets of the Mexican Stock Exchange (BMV), explained that the demand for debt by Mexican companies started slowly in January (as has typically happened) due to a cyclical issue. But in February and March the situation improved.
In February, 1,300 million pesos were issued against the 1,200 that were placed in the same month of 2021. The activity last March was 138% higher, with 21,931 million pesos, compared to the same period last year.
The director of the BMV added that companies go to the Stock Exchange for financing to improve the profile of their debt and to refinance the maturity of their liabilities. In some cases, he said, they do it to fund their growth plan.