Business

Mercado Libre prepares to raise $1 billion in bonds

Talks with investors are due to conclude on Wednesday, with pricing coming out the next day

Mercado Libre was one of the major players to take advantage of the third VAT-free day in Colombia
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  • The issue will be made in two tranches – one for five years and the other for 10 years;
  • The funding will be used to refinance current debts.

Mercado Libre, the largest e-commerce portal in Latin America, is preparing a bond issue of about $1 billion, Moody’s said on Monday.

According to IFR, Refinitiv’s service, the issue will be made in two tranches – one for five years and the other for 10 years. The transaction is being conducted by BNP Paribas, Bank of America, Citigroup, Goldman Sachs, and JPMorgan.

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Talks with investors are due to conclude on Wednesday, with pricing coming out the next day.

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In a report, the credit rating agency rated Ba1 for the proposed issue, with a stable outlook. According to the document, the funding will be used to refinance current debts, for corporate purposes, including green and social projects.

(Translated by LABS)

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