Tiete Emprendimientos, a Brazilian subsidiary of U.S.-based utility giant AES Corp., will sell a $300 million 15-year securitized bond via Banc of America with a variety of structural enhancements from the Overseas Private Investment Corp. (OPIC). If the deal prices as expected it will mark the first sale of a Latin American bond featuring an insurance policy against currency devaluation.
Banc of America will take the 144A Reg-S on the road in the U.S. April 17 to April 24 and in Europe April 25 to April 27. Syndicate bankers on the deal hope to price April 30 and close May 7. Fitch and Moody's Investors Service have granted the transaction investment grade ratings of BBB- and Baa3, respectively thanks to the three-fold enhancements built into the deal. While the structure should allow Tiete access to term financing - a goal that is typically off limits to Brazilian corporates - it is highly specialized and will only be applicable on a case-by-case basis going forward.