Rio de Janeiro Mulls Securitizations

The state of Rio de Janeiro is considering setting up securitization funds for its oil royalties and real estate projects. This is part of a broad effort to regularize cashflows and increase the jurisdiction’s financial transparency and access to the markets, the state’s finance secretary Joaquim Levy tells LatinFinance. A securitization could be placed in the domestic or foreign markets and be worth $500m-$900m, says the former IDB official, adding that there is nothing concrete yet in the works. Levy met Friday with S&P to discuss ways of preparing for a deal. “Today there is a big appetite for BRL risk outside Brazil,” says Levy.