MELI levanta US$ 1 bi com bond de 10 anos

Mercado Livre, the Brazilian e-commerce giant, raised US$1 billion through the issuance of a 10-year bond on the afternoon of today. The bond, with a maturity date in 2036, was priced with a spread of 130 basis points above the 10-year Treasury, according to sources familiar with the deal. Demand reached US$2.1 billion at the peak of the book and settled at around US$1.8 billion after some investors reduced their orders as interest rates tightened.

The final spread was in line with other investment-grade issuers like Suzano and JBS, while Vale's and Gerdau's bonds of the same maturity trade with a slightly tighter spread around 100 basis points. The proceeds will bolster liquidity and support MELI's growth plans. With today's issuance, the company founded by Marcos Galperin now has three bonds in circulation.

In addition to the new issue, MELI has US$700 million maturing in 2031 and another US$600 million due in 2033. The firm is rated BBB- by Fitch and S&P, and Baa3 by Moody's, the first step towards investment grade status among the three agencies. Fitch noted yesterday that MELI's credit profile is supported by its leadership in Latin American e-commerce, diversification, and strong cash generation, but highlighted the impact of its expansion spending on profitability.

The company's debt portfolio is expected to grow by 55% this year and 35% in 2027, with estimates of MELI adding US$2.5 billion in debt in 2026 and US$4.5 billion in 2027 to fund its expansion. The bond was underwritten by BofA, Citi, Goldman Sachs, JP Morgan, and Morgan Stanley, with Allen & Company and Santander acting as joint books.

MELI entered the market during a busy week following Labor Day in the U.S., where the debt market bought US$40 billion in bonds from 19 issuances. Two other Argentine companies, YPF and Tecpetrol, also accessed the market this week, raising US$1.2 billion and US$450 million, respectively.