More and more Brazilian power companies are warming up to receivables investment funds (FIDCs) as a funding vehicle. The Cataguazes group - made up of five electricity distributors - has a R$240 million ($84 million) fund on the horizon, according to a source familiar with the issuer. Santander is reportedly lead bookrunner and Unibanco and Banco Itau BBA co-managers on a transaction with a senior piece worth R$210 million and subordinated notes of R$30 million. Standard & Poor's and local agency Austin are rating the deal, which should achieve a level at or near AA' on the national scale, the source said.
The transaction is closed-ended, with a likely maturity of three months.