Brazilian consulting firm Hampton Solfise has structured a R$136-million (US$39.4 million) senior share issue by local fund FMAX. Backed by consumer loan receivables and earmarked for a November placement, the deal is typically Brazilian in that the structuring agent opted for a fund structure because of several tax exemptions applied to that sector. "SPVs don't work here because of the tax burden," said Patricia Bentes, managing director of Hampton Solfise.

Another advantage of the fund structure is that investors can redeem their shares after a grace period of three months. The issuer will sell 4,000 senior and 1,400 subordinated shares, which will be used to make revolving purchases of receivables originated by Maxima Financeira, a Brazilian consumer financing company. Moody's Investors Service has rated the deal Aaa.br' on the national scale and Baa2' in local currency on the global scale.

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