State Entity Preps Debentures

Minas Gerais Participacoes (MGI), a holding company controlled by the state government of Minas Gerais, is preparing to sell BRL400m ($201) in domestic bonds, it says. The 2017 bonds would pay the DI plus up to 3.5%, and can be upsized by 15%. The proceeds will be used to repay the state government under a credit receivables contract. Citi, Santander and ABC Brasil are managing the sale, which has not yet been rated. The regulatory documents do not indicate the timing. MGI is 99% owned by the state, with minority holders including Cemig and the state development bank. The bank is focused on helping companies in the development phase, and its holdings include 16% of the Helibras helicopter manufacturer.