Direct value chain checks were also negotiated for another $ 2.38 billion and, on average, $ 39 million weekly in promissory notes and $ 21 million in electronic MiPyME credit invoice.
“The instrument that was implemented during the confinement and that showed the most dynamism in recent weeks is the check. In April, the negotiation of the guaranteed segment amounted to more than $ 3.2 billion”, First’s report detailed.
The growth of the SME sector in the capital market comes hand in hand with a drop in the cost of financing for companies in this market, which, since the beginning of the year, has decreased by more than 20 percentage points, a trend that has accelerated in the last weeks.
“The average rates in local currency of the issuances of financial trusts and negotiable obligations were reduced more than 600 basis points (bp) and 1800 basis points respectively, while guaranteed deferred payment checks, the instruments most used by SMEs, closed the month with a monthly drop of 1600 bp “, the report detailed.
“The liquidity available during the first half of April, mainly, produced an acceleration in the decrease in the cost of financing of all instruments in the capital market”, explained Cristian Traut, manager of First.
And I add: “In this way, the average cost of financing for companies in the capital market in 2020 accumulates a decrease of more than 20 percentage points.”
However, the uncertainty generated by the local and global context as a result of the coronavirus pandemic, has yet to see a jump in the volume of emissions to historical levels.
This is due to the fact that, despite the growth of the SME sector, in April the volume of financing of large companies decreased to 70%, which had been averaging monthly financing in the order of $ 18 billion, but which closed April with just over $ 5 billion.
Only five series of financial trusts were placed in April for $ 1.87 billion, 26% below the previous month and 60% lower in year-on-year terms.
In the form of negotiable obligations, only two front-line companies placed debt in the order of $ 3.3 billion in April, a 66% decrease from the previous month’s issues and more than 50% in year-on-year terms.