The structure of Brazilian receivable investment fund (FIDC) Pao de Acucar has gone through changes that illustrate the flexibility of a vehicle that is fast gaining ground. A shareholders' meeting on Feb. 18 decided to increase the concentration limits of certain receivables in the collateral and to replace fund manager Intrag DTVM with Concordia, among other modifications. Fitch Atlantic Ratings deemed the overall impact of the moves neutral and kept the rating at AA(bra)' on the national scale for the R$400 million (US$138 million) in senior shares. Rabobank structured the deal and initially bought all the shares.
The substitution of the fund manager, according to a source familiar with the deal, was for "administrative" reasons. An official at Intrag declined to comment. A unit of Banco Itau, Intrag was the manager of a Parmalat fund that recently folded amid the fraud scandal that contaminated just about every deal connected with the dairy multinational. However, being dropped from Pao de Acucar is unlikely to be any kind of fallout from that debacle, given that Parmalat investors were pleased with how Intrag consistently kept them abreast of the problems facing the company. Replacement fund manager Concordia has a track record in the field of FIDCs, as the manager for a fund originated by foodstuffs company Sadia.