MercadoLibre raises $1B in 10-year bond sale
What's the deal? MercadoLibre raised $1 billion through a 10-year bond maturing in 2036, priced at a spread of 130 basis points over the equivalent US Treasury. The proceeds will bolster liquidity and support the Latin American e-commerce company's growth plans.
Why now? The Argentine company tapped the market during the busy week that follows the US Labor Day holiday. On the day before its sale, the US debt market absorbed $40 billion in bonds from 19 issuers.
What's behind the numbers? Demand peaked at $2.1 billion and settled at roughly $1.8 billion after some investors trimmed orders as the rate tightened. The final spread was in line with other investment-grade issuers such as SuzanoDealroom has a profile for this one. Try Dealroom → and JBSDealroom has a profile for this one. Try Dealroom →.
What's the endgame? The deal gives the company founded by Marcos Galperin three outstanding bonds, alongside $700 million maturing in 2031 and $600 million maturing in 2033. MercadoLibre holds the lowest investment-grade rung across all three major agencies — BBB- at Fitch and S&P, and Baa3 at Moody's.
What could go wrong? Fitch said MercadoLibre's credit profile rests on its leadership in Latin American e-commerce, diversification, and strong cash generation, but flagged falling profitability driven by expansion spending. The company's growing credit business also lifts its funding needs: Fitch expects its loan book to grow 55% this year and 35% in 2027, and estimates the firm will add $2.5 billion of debt in 2026 and $4.5 billion in 2027.
BofADealroom has a profile for this one. Try Dealroom →, Citi, Goldman SachsDealroom has a profile for this one. Try Dealroom →, JP Morgan, and Morgan StanleyDealroom has a profile for this one. Try Dealroom → served as global coordinators, with Allen & CompanyDealroom has a profile for this one. Try Dealroom → and SantanderDealroom has a profile for this one. Try Dealroom → as joint bookrunners.
The signal: MercadoLibre's raise ranks among the largest post-IPO debt deals ever from an Argentine company. It landed in a busy week for the region: state oil firm YPFDealroom has a profile for this one. Try Dealroom → raised $1.2 billion over nine years at a 7.85% yield, and TecpetrolDealroom has a profile for this one. Try Dealroom → reopened its 2033 bond for another $450 million, bringing that issue to $850 million.
Read more: braziljournal.com
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