Eneva stated that it will raise the amount of R $ 2.75 billion for the operation with AES Tietê through bank financing until it is possible to refinance the amount under better conditions in the debentures market, after the coronavirus pandemic. The company opted to use traditional credit lines, maintaining the loans until the conditions of the Brazilian capital market become more attractive.
Petrobras’ board of directors decided to join the initiative of the executive board and will postpone the remuneration of its members by 30% during the second quarter. The payment of this percentage will be made in September. The Board of Directors’ decision is in line with the series of measures adopted by Petrobras to reduce costs and preserve cash in the current scenario of uncertainties.
Hypera’s board of directors approved the emission of R$ 3.5 billion ($ 700 million) in debentures. According to the document, the release will be made in two series, R$ 2.4 billion ($ 480 million) of the first, with a six-year term, and R$ 1 billion ($200 million) of the second, which will have a six-year term as of date of issue.
The Brazilian economy will retract at least 0.4% this year as a result of the coronavirus pandemic, estimates the Ipea (Institute of Applied Economic Research), which works with three scenarios for GDP, depending on the confinement period imposed by the disease. In the worst-case scenario, which foresees three months of confinement, the economy would contract by 1.8% in 2020. Ipea projected, before the Covid-19 pandemic, an expansion of 2.1% in economic activity.
The trade dollar closed up 1.48%, to R$ 5.182 on sale, in the second consecutive advance. It is the second highest face value since the creation of the Real Plan. The Ibovespa, the main index of the Brazilian stock market, also ended up 1.65%, at 74,639.48 points. Last week, the Exchange accumulated high gains of 9.48%.
Eletrobras announced a net profit of R$ 3.1 billion ($ 620 mn) in the fourth quarter of last year, a result 77% lower than that recorded in the same period of the previous year, the company said in a statement. According to the state company, the drop in performance is explained by the positive non-recurring effects that influenced the company’s results in the last quarter of 2018.
Mills in the Center-South region of the Brazil processed 88% more sugar cane in the first half of March compared to the same period last year, according to data recently released by the Union of the Sugarcane Industry (Unica) . According to the survey, the milling in units that concentrate around 90% of national production was 2.99 million tons, compared to 1.59 million registered a year ago.
Brazilian Central Bank stated that the R$ 40 billion ($ 8 billion) payroll financing program for small and medium-sized companies is being put into operation. The bank also emphasized the innovative character of the initiative, announced last Friday, the 27th, and which targets businesses with annual revenues between R$ 360 thousand ($72 thousand) and R$ 10 million ($ 2 million).
With the isolation caused by the coronavirus, franchises in sectors such as tourism, food and services already face the crisis in a severe way. In this scenario, 10% of the country’s franchises will break. Many franchises do not have enough cash to survive the crisis.
The National Bank for Economic and Social Development (BNDES) will use the model of convertible debentures until the end of April to help airlines that are being strongly affected by the fall in demand in the face of the coronavirus pandemic, and may replicate the model in other sectors, said the bank’s president.