The Brazilian issuer touted as the first to publicly launch a receivable investment fund (FIDC) in March 2003 is coming back. Similar to the first deal, this transaction will be backed by consumer loans originated by government entities. Fitch Atlantic Ratings awarded AAA(bra)' on the national scale to the R$112.5 million (US$38 million) senior tranche, which has a targeted return of 108% of CDI. A subordinated tranche is equal to R$37.5 million (US$13 million).

In order to maintain the rating, there are caps on the percentage of the asset pool coming from each state, according to a report from Fitch Atlantic. The borrowers behind the collateral are also a diversified lot. Origination volumes are concentrated in seven entities at the federal, state and municipal levels.

The deal has a maturity of 30 months. In the initial deal, Integral Trust was the arranger and Levy & Salomao provided legal counsel.

Copyright 2004 Thomson Media Inc. All Rights Reserved.

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