Companies sell $5.1 billion in overseas bonds in January

Overseas bonds issued by Brazilian companies totaled $5.1 billion in January, the highest since June 2011, as global markets leapt back to life after six months of worrying about European debt problems, the Brazilian Capital Market Association (Anbima) said Wednesday.

Anbima said it expects that amount to increase in February. Local companies could issue at least $8 billion of overseas bonds this month, it said.

The heavy capital inflows resulting from the bond issues have contributed directly to a strengthening of the Brazilian Real, which has appreciated 8% against the U.S. dollar so far this year, raising red flags in Brasilia.

Government officials have warned they will take steps to prevent too great an appreciation of the currency as that could hurt exporters and manufacturers.In the domestic debt market, companies raised a total of only R$6.7 billion in January, down from R$5.2 billion a year earlier.

Local companies didn't tap the equities market during the month, Anbima said.