Brazil utilities lean on bonds to finance growth, reducing state role
SAO PAULO, Aug 26 (Reuters) – Brazilian power companies are raising a record amount of debt in local markets this year to finance construction of generation assets and transmission lines.
Tax-exempt local infrastructure bonds have been the main instrument to finance power investment in the country. Power companies have issued 12 billion reais ($2.9 billion) of the local bonds in the first seven months of the year, 83% of the total amount issued across all industries.
By Luciano Costa via Reuters