AutoBan Defines Debenture

Brazil’s AutoBan, a toll road operator owned by Companhia de Concessoes Rodoviarias (CCR) plans to begin marketing a BRL950m ($468m) debenture sale on September 15, it says. A BRL850m 2017 tranche pays up to 109.2% of the DI, and a BRL150m 2017 inflation-linked tranche pays a fixed rate set to the yield of the government NTN-B bond at the time of pricing plus up to 0.25%. The deal is able to be upsized to as much as BRL1.28bn. The exact interest rates are to be set during the bookbuilding process, which the issuer expects to wrap up by October 10. Proceeds will go towards debt repayment and projects. The issue qualifies as an “infrastructure bond,” or a local bond offering tax advantages to investors due to its use of proceeds. If AutoBan is able to price, it could be the first, though fellow road operator Rota das Bandeiras is also preparing a similar bond. Banco do Brasil, Caixa and HSBC are managing the sale, rated AAA on a national scale.