For a year ignored by investor heavyweights, receivables investment funds (FIDCs) are now making friends in the Brazilian domestic market. Santander and Itau BBA closed a R$150 million (US$51 million) FIDC on Nov. 25 for international milkmaid Parmalat (see ASR, 11/17 p.16). Despite the trouble that has hit the company, investors clearly differentiated the risk of the beneficiary from that of the assets, which are trade receivables originated by Parmalat clients. Pricing was CDI + 170 basis points, well within the 200 basis point spread the leads were initially seeking, according to a source. Pension funds and asset managers bought in. Next up is an FIDC for Braskem, also led by the Brazilian-Spanish banking pair. R$100 million (US$34 million) should price Dec. 12. Both funds are closed-ended.

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