Healthy capital markets help to strengthen financial systems and increase the availability of funding. They diversify funding sources and enable companies to increase their investor base.
On a macroeconomic level, capital markets can contribute to greater stability in the financial sector, reduce currency risks and help fill in gaps in areas of the economy where traditional financing falls short.
For a company, access to debt capital markets can be a game changer. The ability to issue debt securities such as corporate bonds or asset-backed securities can enable a company to tap into larger amounts of financing than may be available from commercial banks, with better pricing conditions and longer tenors besides.
Most Latin American countries have bond markets, but the volume of private sector bonds issued in the region tends to be relatively low; the regional average as a percentage of GDP is one third that of the United States. In Brazil the opportunity clearly exists to expand bond markets and offer companies more access to debt financing.
That’s what we are doing at Evolutia Capital. We work with clients in many different sectors - from education, health, infrastructure, and housing to manufactures, forestry and renewable energy -, helping them to efficiently obtain debt financing, using our financial products and debt structuring expertise to extend loan maturities and mitigate risks. Our strong credit rating, sound due diligence and attention to integrity and social and environmental factors provide a “seal of quality” that enhances investor confidence.
Why is it important to have strong capital markets?
Expanded access to financing drives a company’s growth, and that growth can bring enormous benefits to a sector’s development. For example, securitizing education loans—that is, bundling individual loans into securities that can be bought and sold—can put higher education within the reach of more students; similarly, securitizing mortgages can open up the market for affordable housing. Green bonds, meanwhile, can spur investment in energy-efficiency and renewable-energy projects that otherwise might take a long time to get off the ground.
At Evolutia Capital, we offer our clients a range of products denominated in U.S. dollars or local currency, including: