Santander Brazil is hoping investors are licking their lips for Nestle, as the bank peddles a domestic real estate receivable deal linked to the European food giant. "There's no way for investors to run Nestle risk in Brazil and this is a way of doing it," said Ricardo Leoni, an associate at Banco Santander in Sao Paulo.
Dubbed Walter Torre NSBC, the transaction is worth R$42.6 million (US$11.4 million) and has a 12-year tenor. Standard & Poor's has rated the bond AAA' on the national scale. Santander has enlisted local agency Atlantic Rating to make an assessment as well. Though in Brazil two ratings are not mandated for institutional investors to buy into a deal, double ratings are required for a single investor to buy more than 20% of a given transaction. Leoni said Santander is marketing the paper to "key investors" and is going the route of one-on-one meetings, instead of a less personable road show. The firm Tozzini, Freire, Teixeira e Silva is legal counsel on the deal.