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– Amruth S
Braskem’s dollar bonds were trading weaker across the curve, despite a 60-day protection against financial debt collections. As per reports from Valor, the company is said to have aggressively tightened its commercial terms with its clients. Braskem is said to have slashed standard 30-to-60-day client payment windows down to 15 days, or demanded upfront payments. Braskem however stated that it “continues to follow the normal commercial dynamics of the petrochemical market and always acts equitably in serving its customers”. According to a source, Braskem is also said to be facing potential pressure from suppliers who may feel threatened by its liquidity worries. The sources added that the situation could see reduced payment terms available for Braskem, especially given its struggles to secure working capital lines.
Braskem’s bonds were lower by about 1 point across the curve. Its 4.5% 2028s were at 60.7, yielding 42.4%.