April 23, 2019
SAO PAULO (Reuters) – Any delay in passing pension reform in Brazil is likely to slow the pace of initial public offerings in the country, Itaú Unibanco Holding SA’s head of Global Markets and Treasury said on Tuesday.
Brazil’s Congress is mulling the government’s pension reform proposal, which many view as crucial to stabilizing the country’s rickety public finances and kick-starting growth in Latin America’s No. 1 economy.
Speaking in Sao Paulo, Christian Egan said “there may be room” for follow-on operations from companies with higher valuation levels.
“It’s case-by-case, but IPOs would be unlocked much faster (with the reform approved),” he said.
Egan said there is great interest from foreign investors in Brazil, who are awaiting the for the passing of the pensions overhaul to invest, particularly in areas like infrastructure.
Also on Tuesday, Brazil’s government reached a deal with lawmakers, paving the way for a congressional committee to vote on its pension bill later in the day, boosting investor sentiment and lifting local financial markets.
(Reporting by José de Castro; Editing by David Gregorio)