At press time, Brazil's Furnas Centrais Eletricas was on the verge of closing its R$334 million ($116 million) receivables investment fund (FIDC), but the hulking power producer is not the only originator powering what's become a formidable ABS machine. Manufacturers Gradiente and Amanco are currently taking investors for their respective FIDCs; Banco Bonsucesso closed its own fund Oct. 14; Banco BMG is heard returning with a third fund; and auto-loan specialist Omni recently closed the sixth and last series of an FIDC.
Led by Banco Santander, the Furnas FIDC was scheduled to close subscription on Oct. 15. Investors were not expected to snap up the entire deal at the closing date, meaning Santander would probably underwrite a portion. Typically, closed-ended FIDCs launch and close within expansive time frames, often of several months. Eager to receive the proceeds, Furnas set a short horizon for funding, which squeezed the road show, fund launch and close into a two-week period. This did not leave enough time for many pension funds to buy in, since approval for investments takes longer, according to a source close to the transaction.