Brazilian securitization arranger Rio Bravo Investimentos sees strong potential for the growing use of FIDC receivable investment funds as project finance. "Through FIDCs we've been trying to create new funding for infrastructure projects in Brazil," said Marcelo Michalua, director of the boutique shop.
He declined to comment on Rio Bravo's reported mandate from Sao Paulo commuter train operator Companhia Paulista de Trens Metropolitanos (see ASR 7/4/05).
He did note, however, that companies that traditionally rely on Brazil's huge state development bank BNDES - which are often state-owned projects - are being well served by the burgeoning FIDC market. "FIDCs are a new alternative for companies that want to raise funds in the capital markets and not depend on the BNDES only," Michalua said.
Outside the project realm, Rio Bravo is working on an FIDC for members of manufacturing trade group ABIMAC, according to Michalua. The $200 million deal is backed by trade receivables from 200 to 300 small to medium sized manufacturers and has a 2.5-year maturity. The obligors are the originator's clients, mostly big names hailing from a range of industries.
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