Brazil Corporate Bond Sales to Rise, Coutinho Says

Dec. 14 (Bloomberg) -- Brazil’s local-currency corporate debt market is poised for a “golden year” in 2010 as investor appetite for longer-maturity real-denominated assets increases, said Luciano Coutinho, president of the state development bank.

Brazil has “great potential” for a secondary market for corporate bonds, and BNDES, as the development bank is known, is prepared to help build it, Coutinho said. Larger Brazilian companies with “good” credit ratings will be able to issue real-denominated debt next year in addition to selling shares, Coutinho said.

“We expect 2010 will be a golden year for the development of the corporate bond market,” Coutinho told reporters in Sao Paulo. “The capital markets have robust and immediate opportunities for expansion.”

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