Utility Readies ABS Tap

Companhia de Saneamento Ambiental do Distrito Federal (Caesb), the Brazilian Federal District’s water and waste utility, is preparing a BRL120m FIDC, or domestic ABS, transaction. Caesb is aiming to open the distribution process by the end of the month and wrap up the transaction by March 3, according to regulatory documents. The BRL120m in 5-year senior notes are backed by sanitation contract receivables and the units should pay interest at the DI plus up to 2.5%. In addition to the BRL120m senior tranche, an BRL8.5m subordinated debt piece is also being issued, to be held on the issuer’s books and paying an undisclosed rate. Banco do Brasil is managing the sale, rated AA minus on a national scale.