Despite the differences in the diplomatic field, Brazilian exports to Asia grew by 27.7% in May, with an increase of 35.2% in products exported to China. Amid the coronavirus pandemic, sales of agricultural products, specifically to Asians, prevented a further drop in exports last month, which fell 4.5%. From January to May, sales to Asia grew 16.8%.
Embraer should obtain financing from the National Bank for Economic and Social Development (BNDES) and private banks worth $600 million to meet its demand for executive and commercial jets for the coming months, government sources under conditions of secrecy. This shows the company’s solidity and balance in the midst of the crisis that affects the airline sector.
Latam reported a net loss of $2.120 billion (R$11.5 billion) in the first quarter. The value is 35 times the losses recorded in the same period of 2019, of $60 million (R$325.9 million). According to the company, the result is explained by a reduction in capital gain of $1.729 billion due to the coronavirus crisis and which, according to the company, does not affect the company’s cash.
Petrobras concluded the sale of its stake in seven onshore production fields for R$676.8 million ($128 million). The fields, located in the Potiguar Basin in Rio Grande do Norte, were purchased by SPE 3R Petroleum which is a subsidiary of 3R Petroleum and Participations. In a statement, Petrobras says the operation is in line with the strategy of portfolio optimisation and better allocation of capital.
The private equity fund IG4 bought two hospitals for R$200 million ($38 million) through its recently created health company OPY Health in the midst of the coronavirus pandemic, according to sources with knowledge of the matter. The last purchase, from Delphina Rinaldi Abdel Aziz hospital, was closed on Friday. The Metropolitano hospital, in Belo Horizonte, was purchased by OPY in March.
Santander announced an investment of $ 5 million in the Brazilian startup a55 through its Santander InnoVentures venture capital fund. This is the fourth investment that the fund makes in Latin America and the 30th made in a fintech. Prior to this round, a55 had raised $ 3 million from Brazilian and foreign angel investors.
Petrobas raised $ 3.25 billion by issuing bonds in the international market. It was the first capture of a Brazilian company after the start of the pandemic. The capture was made in two different plots. The first, of $ 1.5 billion expires in 2031 and has an interest rate of 5.6% per year. The second, of $ 1.75 billion expires in 2050 and has an interest rate of 6.9% per year.
Fashion retailer Hering saw nearly a 90 percent drop in first quarter earnings, directly affected by the social isolation measures taken in mid-March in the country to try to contain the coronavirus pandemic. The company reported that its profit for the period amounted to R$ 5 million ($ 1 million), down 89.2% from the same stage of 2019.
Aircraft maker Embraer negotiates a $ 600 million bailout package with banks that will include only debt instruments, with no possibility for creditors to hold a stake in the company. BNDES will provide about 50% of the loan, while the rest will be financed by Banco do Brasil, Banco Santander Brasil and Banco Bradesco.
Centauro said on Tuesday it would make a restricted primary offer of about 25 million shares to raise funds for acquisitions. Based on the closing price of the shares on Monday, the offer may move up to R$ 928.8 million ($ 182 million), including total instalments of up to 8.75 million shares.