After Ultrapar, emissions of Brazilians abroad border R $ 33 billion

Ultrapar has just raised an additional US$350 million in foreign market issued bonuses, with the reopening of an operation last year, with a ten-year term. Therefore, the roles expire in 2029. Demand exceeded supply by 80% and reached $630 million. The coupon stood at 5.25%. With this, the company strengthens the cash by almost 1.9 billion reais and lengthens the term of its commitments.
The leading global coordinator of the operation was Morgan Stanley. They also worked in the coordination of Itaú BBA and Santander, and Bradesco BBI, Mizuho Securities, MUFG and Scotiabank completed the distribution.
The company has been gaining weight for the team of large national companies that captured outside Brazil after the pandemic stressed the markets: Petrobras, Rumo, Vale and Nexa Resources (formerly Votorantim Metais, after a combination with Peru's Milpo). Together, these five companies raised 6.1 billion dollars, which at the current exchange rate is no less than almost 33 billion reais.
Raízen, another Cosan Group company such as Rumo, already has approval from its board of directors to reopen an issue last year and seek another $300 million.
Petrobras, as almost always, reopened the foreign market, with an operation of US$3.25 billion. The local debt market has improved, but credit fund redemptions have hurt liquidity. Thus, companies in search of larger volumes and agility are choosing to issue outside the country, where the depth of available reserves is greater. Internally, the encouraged operations, which can be passed on by banks in the secondary market, have already met good demand.
At the beginning of the year, Ultrapar, faced with the scenario of instability, had captured 1.5 billion reais internally, 85% in promissory notes and 15% in credit lines. At the end of March, Ultrapar had 11.4 billion reais in net debt, considering the lease commitments —which was equivalent to 3.27 times the Ebitda of the last 12 months. Although it has 53% of its financial commitments exposed to foreign currency, Ultrapar hedges for more than 80% of the position. The company's March balance sheet pointed to maturities of 1.8 billion reais in the following 12 months. The cash position plus investments totaled R$ 7.25 billion.
Holding house investments in fuel distributor Ipiranga, gas company Ultragaz, Oxiteno chemical, ultracargo storage company and extrafarma pharmacy chain, the company consolidated a positive cash flow of 731 million reais in the first three months of the year, 184% higher than in the same period of 2019. Of all the businesses, the most affected by the pandemic is ipiranga's operation, with a reduction in sales and loss in the value of inventories, although Oxiteno and Extrafarma also recorded in the first three months of the year the effects of reducing international demand and closing units by the strategy of social isolation.