Brazilian Bank Preps Loan ABS

Brazilian lender Banco BVA is preparing to raise BRL200m through a loan securitization using the FIDC structure, according to regulatory documents. It is the bank’s second of the year, and involves loans made to small and medium-sized businesses, according to an official at the bank. The deal features a 4-year AA+ rated senior tranche that pays interest at the DI rate plus 3.5%, and BRL70m in subordinated debt. Bookbuilding is expected to wrap up at the end of the month or early July. BVA is self-leading the deal, which follows a similar BRL300m placement in April.