MercadoLibre Gets $193 Million in Sale of Brazil Real Estate Bonds

Bloomberg — Latin American e-commerce retailer and fintech provider MercadoLibre Inc. (MELI) has tapped Brazil’s local debt market as it seeks to fund its largest investment plan for the nation yet.

The firm raised 1 billion reais ($193 million) in local bonds that are backed by real-estate receivables known locally as CRIs, according to a statement. The transaction was led by Banco Itau BBA SA, Bradesco BBI SA and Banco Safra SA.

MercadoLibre plans to use the proceeds to expand and revamp its logistics network in Brazil, where it gets the majority of its revenues. The company had previously unveiled a plan to invest a record 17 billion reais in the country this year.

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Goldman Lends MercadoLibre $233 Million for Credit Growth in Brazil, Mexico

MercadoPago, as the financial-tech business is known, will use $106 million to boost its credit portfolio aimed at individuals and smaller businesses in Brazil, while $127 million is earmarked for Mexico

The deal takes place amid increased demand from investors for private-credit instruments as rates rise rates in Latin America’s largest economy.

Read more at Bloomberg.com