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Brazil Stock, Debt Issuance Down 3.3% Through October -Anbid

SAO PAULO -(Dow Jones)- Brazilian debt and share issuance dropped 3.3% in the first 10 months of 2009, although October may have marked a rebound in capital market activity, the Brazilian Investment Banks Association, or Anbid, said Friday.

In the January-October period, capital market issues by Brazilian companies, including both debt and equity markets, totaled 86.9 billion Brazilian reals ($ 50 billion), down from BRL89.8 billion in the same period of 2008.

Although the annual comparison showed lower activity, October marked a recovery in capital market activity. October activity alone was BRL29.3 billion, up from only BRL2.8 billion in October 2008, the month when the full weight of the global economic crisis hit Brazil.

October figures were fueled by the initial public offer of shares in the local unit of Spanish bank Santander (STD), which totaled BRL14 billion.

The volume of debt issues fell to BRL43.39 billion in the January-October period from BRL54.9 billion a year ago.

Equity issues totaled BRL43.53 billion in the first 10 months, up from BRL34.8 billion in the same period of 2008.

Earlier this year, Anbid forecast total capital market activity of between BRL100 billion and BRL120 billion in 2009, with most operations likely to happen in the second half of the year.

Last year, Brazilian capital market activity slid nearly 31% from 2007 to BRL102 billion.

-By Rogerio Jelmayer, Dow Jones Newswires; 5511-2847-4521; rogerio.jelmayer@ dowjones.com

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  11-06-090652ET
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