MercadoLibre raises $193m in Brazil

In order to finance its greatest investment plan for the country to date, Latin American e-commerce retailer and fintech provider MercadoLibre Inc. has turned to the local debt market in Brazil.

In local bonds backed by real estate receivables known as CRIs, the company raised 1 billion reais ($193 million), according to a release. Banco Itau BBA SA, Bradesco BBI SA, and Banco Safra SA took the initiative in the transaction.

Since Brazil is where MercadoLibre generates the majority of its income, the company intends to utilise the funds to upgrade and expand its logistics system there. Earlier this year, the business announced plans to invest a record 17 billion reais in the nation.

The transaction occurs as investors’ demand for private-credit products rises in response to rising interest rates in Latin America’s largest economy.