Oil producer Petroleos Brasileiros is preparing to finance local buildings through a structure typically used by Brazilian construction companies. The R$200 million ($89 million) 10-year securitization is backed by lease payments owed by Petrobras under a "built-to-suit" lease agreement. Rio Bravo Securitizadora will issue the paper and a source close to the deal said Santander Investment has agreed to purchase the offering in its entirety.
Under the terms of the structure, Petrobras establishes Fundo de Investimento Imobiliario RB Logistica, a fund 99% owned by the oil company, and 1% by asset manager Pentagono DTVM, which also acts as the trustee. Petrobras gives the fund rights to a specified property, divided into two lots, that the company owns in Macae, a city in the state of Rio de Janeiro. At the same time, the fund signs a 10-year leasing agreement with Petrobras. The fund then transfers the lease rights to Rio Bravo, which issues the securitized paper. The bond proceeds flow back to the fund, which pays a construction company to put up on building on each of the two lots. Once the construction is complete, Petrobras will lease the buildings from the fund.