Renner Closes BRL300m Bond

Lojas Renner has raised BRL300m ($188m) through dual-tranche issue in Brazil’s local bond market. The retailer’s BRL215.1m 2016 amortizes equally in years 4 and 5 and pays the DI+1.1%, coming in under a DI+1.35% ceiling. A BRL84.9m IPCA-linked 2017 pays a fixed 7.8% rate and amortizes equally in years 4, 5 and 6. Renner is raising funds to optimize its capital structure, with a view to having sufficient liquidity to carry out its organic expansion plans. Santander managed the sale, rated AA+ on a national scale. The transaction is one of the few Brazilian domestic bond deals done in the rule 400 format, rather than the restricted-format rule 476 provision, which have accounted for the great majority this year.