Senior Credit Analyst - Emerging Markets, EM Spreads

Leandro Gubler

EM Spreads is an independent credit research service specializing in Emerging Markets, primarily focusing on Latin American issuers.

Senior Credit Analyst - Emerging Markets

MercadoLibre 1Q26: Full Cart, Thinner Margins

MercadoLibre 2Q26: Growth Outruns the Credit Profile

MercadoLibre 4Q25: Strong Growth, Margin Pressure Persists

EM Spreads

Credit

<ul>
<li>MercadoLibre priced US$1.0bn 5.850% 2036s at 6.139%; we remain Neutral, rate the new bond Hold, and continue to prefer the lower-duration 2031s.</li>
<li>The deal lifts pro forma liquidity coverage to ~1.10x, but total debt rises to US$14.18bn, gross leverage to ~3.64x, and annual coupon expense by US$58.5mn. </li>
<li>The 2036s offered no obvious new-issue concession and sit broadly in line with long-dated LatAm IG peers, leaving limited valuation cushion against funding-intensive Fintech growth. </li>
</ul>


MercadoLibre priced US$1.0bn 5.850% 2036s at 6.139%; we remain Neutral, rate the new bond Hold, and continue to prefer the lower-duration 2031s.
The deal lifts pro forma liquidity coverage to ~1.10x, but total debt rises to US$14.18bn, gross leverage to ~3.64x, and annual coupon expense by US$58.5mn. 
The 2036s offered no obvious new-issue concession and sit broadly in line with long-dated LatAm IG peers, leaving limited valuation cushion against funding-intensive Fintech growth. 


MercadoLibre Prices US$1.0bn 5.850% 2036 Senior Unsecured Notes