Brazilian local firm Unitas is heard working on a tuition receivables deal for UniverCidade in Rio de Janeiro. The paper would amount to R$40 million (US$13 million) and probably have a term of five years, according to a source familiar with the transaction. Apparently, the structure would resemble a transaction that Unitas handled last year for the Universidade Luterana do Brasil (Ulbra). It is understood to be a debenture, a vehicle that has lost popularity to the more tax-friendly receivable investment funds (FIDCs).
Meanwhile, catering to certain high net-worth clients, asset manager Intrag DTVM has issued a small R$11.8 million (US$3.7 million) FIDC backed by Chemical FIDC, which is, in turn, backed by trade receivables originated by petrochemical giant Braskem. "We did this to give [retail investors] the comfort of liquidity," said Alexandre Zakia, senior managing director of Banco Itau, which controls Intrag and also provides custodian services on the deal. The underlying FIDC is closed-ended and has a three-year maturity, which is too long for retail investors, given that a secondary market has yet to emerge, Zakia said. In contrast, the fund of fund will enjoy liquidity provided by Itau.