JBS Lines Up BRL400m CCB Loan

JBS is planning to obtain up to BRL400m in CCBs, or bank credit certificates, according to Fitch, which rates the facility BBB+ on a national scale. The beef processor will use the funds for working capital, according to Fitch. CCBs function as a bank loan, and can be registered at Brazil’s clearing house Cetip to be reoffered to other bank lenders in the secondary. A JBS spokeswoman declines to comment on the financing and no further details about the loan were immediately available. JBS is struggling with liquidity after spending more than $700m on international acquisitions this year, and faces about $1.4bn in maturing debt over the next 12 months. With the international debt markets largely closed in the second half of 2008, Brazil’s largest borrowers have been turning to domestic facilities such as CCBs and promissory notes. Telemar obtained BRL4.3bn in 8-year CCBs in July from Banco do Brasil, paying DI plus 1.30%.