A first-time issuer in Brazil is set to provide a test case for securitizing personal and consumer loans whose payments don't rely on automatic deduction. Dacasa Financeira is prepping a receivable investment fund (FIDC) backed by loans to lower income individuals who have to pro-actively make payments, according to a source on the transaction.
So far, the only loans to be securitized in Brazil are owed by pensioners and public sector employees, with payments automatically deducted from their paychecks or social security payments.
Registered with regulators last week, Dacasa's FIDC is currently sized at R$100 million ($44 million), with a senior chunk of shares totaling R$80 million. Fitch Ratings has rated the senior piece AA+(bra)' on the national scale. The subordinated slice is unrated. Much of the structure's credit strength rests on a bulky excess spread, estimated at 65% a year initially. The first batch of loans being sold to the fund charges an average monthly rate of around 6%, while the pre-set yield on the senior shares is 112% of the benchmark CDI rate. The senior and subordinated shares have a maturity of 36 months.
The structurer of the deal, BNC Securitizadora, is apparently green in the FIDC business - at least in the public realm - while more seasoned names are attached as well, with Mellon Distribuidora in charge of placement, and Banco Bradesco acting as custodian and asset manager, according to the source on the deal.
Dacasa customers can make loan payments through branches of Banco Santander, Caixa Economica Federal, and Bradesco. Given that the company focuses on the lower-income strata, losses are steep, running at about 12% on the loan book, according to the source. Dacasa's credit assets total R$133 million.
Dacasa is based in Espirito Santo a state on the Atlantic that is flanked by Rio de Janeiro state to the south and Bahia to the north. The company operates in all three states, with a portfolio of about one million clients.
Elsewhere in the Brazilian FIDC market, regulators have held back an FDIC for Marcopolo, a company that manufactures bus bodies (ASR, 04/24/06). Company officials raised the hackles of the CVM - Brazil's SEC - by disclosing too much about the deal to the local press before it launched, according to a source close to the transaction. He added that the situation has now blown over and distribution should begin no later than this week. Bradesco is committed to purchasing the entire 80% senior portion of each issue of R$20 million in shares, which are planned on a monthly basis until the fund reaches its R$120 million cap.
Collateral for the deal consists of vehicle loan owed to Marcopolo's own bank, Banco Moneo. Maturity is 60 months. Gainvest and Bradesco are joint arrangers.
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