Sabesp Readies Debenture Issue

Brazilian utility Sabesp is moving ahead with a plan to sell BRL220m in debentures split into 2013 and 2015 tranches. A BRL100m 2013 tranche will pay 2.75% over DI, and a BRL120m 2015 piece will pay a fixed rate of 12.87%. The issue is rated A minus on a national scale. Proceeds will help pay down BRL300m in debenture maturities coming due in March. HSBC is managing the transaction, with Citi, Caixa Economica Federal and Banco do Brasil as co-managers. The Sao Paulo state water and sewage utility filed a BRL3bn local bond program in August.