Emerging Markets Roundup: Brazil

FIRST IPO BY A BRAZILIAN INVESTMENT BANK

 

By Antonio Guerrero

 

BTG Pactual launched the first IPO by a Brazilian investment bank in April, with its $2 billion IPO on the São Paulo Stock Exchange and simultaneous depositary receipts listing in Amsterdam. The much-awaited IPO reportedly attracted $6.6 billion worth of bids and revived the country’s stagnant IPO market.

 

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Millions of Brazilian commuters to benefit from transport upgrade

Brazilian steelmaker Gerdau plans to invest BRL838 million ($435 million) to expand its mining output. The company will nearly double its iron ore production, allowing it to become self-sufficient in iron ore for its steel plants by 2014. Gerdau is seeking a strategic partner for the mining expansion. A survey published by Ibram, Brazil’s national mining institute, estimates mining sector investment of $75 billion between 2012 and 2016.


Brazilian president Dilma Rousseff announced a more than $17 billion federal infrastructure investment program to improve the country’s urban public transportation systems—including subways, light rail, monorail and special bus lanes. It will be managed and funded through partnerships with state and municipal governments—which will contribute more than $5 billion of the total investment. This is Brazil’s first federally sponsored public transportation upgrade drive.

 

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