By Tatiana Bautzer

NEW YORK (Reuters] – One side has a president questioning integrity of the electoral process. A challenger warns that he may reverse the nation’s largest privatization in many decades.

However, investment bankers remain optimistic about Brazil’s election results and the potential impact on investors’ appetite for future deals.

Executives say that investor attention has been focused on the global risks of higher U.S. rates, inflation, and war in Ukraine. This makes a contest for president between familiar faces appear manageable.

“Given the global outlook, Brazil represents an attractive opportunity for investors as a global commodity provider, likely overriding any potential short term political uncertainty,” said Max Ritter, managing director at Goldman Sachs & Co (NYSE:) responsible for Latin America.

While enjoying a strong lead in the polls, former President LuizInacio Lula Da Silva stuck to his proven left-wing rhetoric. The bankers however see the choice of Geraldo Alckmin (centrist, former Governor Sao Paulo) as a sign that Alckmin is still committed to market-friendly policy he adopted when he was elected in 2003.

Ricardo Lacerda is the founder and CEO at Brazilian investment bank BR Partners. He also acknowledged that there was a risk that Jair Bolsonaro, a far-right president, and his supporters might challenge the result.

He said that Brazil’s interest in acquisitions and mergers is still strong, even though there has been a decline in demand for shares.

Lacerda stated that some investors have begun to look at Brazil as a potential investment destination after sharp rises in interest rates.

At the head of Latin America is Citigroup Eduardo Cruz (NYSE:) said that there might be an opportunity for new share issues before the end of this year. However, he believes most listed companies will sell new stock and not a new wave in initial public offerings.

Lula has publicly criticised the deal’s bankers, but even they say that there are no signs of cold feet.

Bolsonaro’s government has been racing to privatize Centrais Eletricas Brasileiras SA (or Eletrobras) with a share sale diluting government stakes and raising over $6 billion prior to the October election.

Lula has warned business leaders “serious” not to sign the deal. She told rally attendees that Bolsonaro buyers would have to speak to her if they want to participate in privatizations.

Three Eletrobras bankers, who spoke anonymously because of their confidentiality, stated that they still see strong foreign investor interest in Eletrobras. They called Lula’s comments “overheated campaign rhetoric.”

According to one, “There are very few assets with strong upside potential like Eletrobras following the privatization.”