CPFL Subsidiaries Tap Local Debt

Seven units of Brazil’s CPFL are on track to raise BRL1bn in local 2-year notes. Today, issuances from 4 units will clear, while another 3 are scheduled to clear August 10. The funds have been raised over the past 2 weeks, says a CPFL finance executive. The following entities raised 2-year funds at a range of different prices, reflecting their cashflows and credit metrics: Cia. Paulista de Forca e Luz issued BRL175m at 110.30% of the CDI; RGE raised BRL185m also at 110.30 of the CDI; CPFL Geracao did BRL425m at 109.80% of the CDI, and CPFL Brasil got BRL165m at 111.00% of CDI. Next month, CPFL Jaguari, CFPL Sul Paulista and CPFL Leste Paulista will raise a combined BRL60m at 111.90% of the CDI, say company officials. The deals had to be done on a separate basis because of regulations prohibiting transfer of funds from one entity to another. HSBC led the deal, with UBS Pactual as joint bookrunner.