Latin America debt markets: Brazil's IFRS reform aids Energesia perpetual hybrid.

The article reports on the 200-million-dollar perpetual hybrid deal for Brazilian utility, Energesia. Finalized in late 2011, the deal built on the country's adoption of new International Financial Reporting Standards (IFRS) that enable the principal of perpetual bonds to be accounted for as equity, avoiding any current volatility affecting the issuer's net income. The new IFRS improved Energesia's capacity to pay dividends and offers a new corporate finance tool, depending on the objectives.