Drawing on an existing receivables program, Brazilian pulp potentate Aracruz Celulose priced a US$175 million deal on April 30 at 6.361%. Going ABS in the lead-up to a Fed tightening made the most sense, said Chief Financial Officer Isac Zagury. "The type of buyers in this aren't so sensitive to interest rates," he said, noting that straight bonds among emerging markets had suffered more from rate anxiety than structured deals.

Demand of US$250 million even prompted Aracruz to throw another US$25 million on top of the US$150 million originally planned, Zagury said. JPMorgan Securities was lead, a switch from Citigroup, which handled the last ABS by Aracruz, a US$400 million deal tapping the same program via vehicle Arcel Finance. The group of investors was basically the same, with a couple of newcomers.  

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