The Brazilian receivables investment funds market is moving briskly along. Currently selling shares is BMG FIDC Creditos Consignados IV, a transaction that originator Banco BMG is backed by personal loans to retirees and pensioners of the National Institute of Social Security, according to a source close to the transaction. Some of the loans backing the deal can be arranged over the phone, according to a report by S&P. The final maturity of the revolving deal structure is three years. The total size of the fund is capped at R$150 million ($62 million), with R$30 million corresponding to subordinated shares. Standard & Poor's has rated the senior shares brAAAf' on the national scale.
The lead arranger for the deal is Integral Trust, which has managed other FIDCs for BMG. This transaction marks the first time the originator has used loans to retirees as collateral. In the past, BMG backed deals with personal loans granted to employees of state-owned companies.