MercadoLibre raises $1 billion with a new ten-year bond

MercadoLibre ($MELI) completed a $1 billion issue of senior unsecured notes paying a 5.85% coupon and maturing in 2036. More than 100 institutional investors participated in the SEC-registered offering. The company said the transaction achieved the same credit spread as its previous seven-year issuance despite extending the borrowing term to ten years.

The proceeds are intended for general corporate purposes, giving the group additional long-term funding flexibility rather than financing a newly identified acquisition in this announcement. The issue adds debt and future interest obligations as well as liquidity. MercadoLibre described the financing as evidence of continued access to capital markets, but the release does not allocate the proceeds among individual countries, operating segments or specific projects, and it does not revise the company’s earnings outlook.

Sources:

• MercadoLibre — senior-notes issuance, Business Wire