Ultrapar Preps Chunky CP

Continuing the trend of top Brazilian corporates raising short term debt in the local market, Ultrapar, the Brazilian utility company, will seek to place BRL1.2bn in 360-day promissory notes, the local equivalent to commercial paper. With local debt markets virtually shut to new long dated deals, the country’s top names have resorted to funding themselves in the CP market. Cosan and Oi/Brasil Telecom have also recently landed chunky promissory notes. The latter managed to get its lenders to agree to the same terms for a second 360-day period, effectively raising 2-year money. Bradesco’s BBI is placing the Ultrapar deal and has apparently provided an firm guarantee on the notes, says one local debt banker.