MercadoLibre Returns to Global Debt Markets Amid Spending Push

MercadoLibre Inc. is returning to global debt markets for only the third time as it boosts investment across Latin America.

The regional e-commerce and fintech giant, which operates in 18 countries, is offering dollar notes maturing in 2036 at an initial spread of roughly 160 basis points over comparable US Treasuries, according to a person familiar with the matter. Proceeds will be used for general corporate purposes, said the person, who asked not to be identified because the information isn’t yet public.

The sale would be MercadoLibre’s first since December and only its third international bond since its inaugural global offering in 2021. Its existing notes due in 2033 were quoted at a yield of around 5.7% on Tuesday, according to data compiled by Bloomberg.

Allen & Company, BofA Securities, Citigroup, Goldman Sachs, JPMorgan, Morgan Stanley and Santander are handling the deal, the person said.

The new notes are rated BBB- by Fitch Ratings and S&P Global Ratings, and Baa3 by Moody’s Ratings — the lowest investment-grade level at all three firms.

MercadoLibre has been investing in logistics and its Mercado Pago fintech business in Latin America. Revenue jumped 50% from a year earlier to $10.2 billion in the second quarter, marking its 30th consecutive quarter of sales growth above 30%.

The company’s strong operating performance, leading position in Latin American e-commerce and solid liquidity support its credit profile, Moody’s Ratings said Tuesday. But the ratings firm cautioned, “these strengths are balanced by lower profitability as the company accelerates investment in logistics, customer acquisition and its credit business, as well as by the funding and asset-quality risks associated with rapid fintech growth.”