Brazilian Retailer Plans ABS

Globex Utilidades is preparing a BRL675m FIDC transaction in Brazil’s local market. The operator of the Ponto Frio chain plans to securitize credit receivables from financing to customers. The transaction will be divided into a BRL600m senior tranche and a BRL75m subordinated tranche, with the maturities and interest rates still to be determined. Itau is managing the transaction. If completed at this size, it would be the largest FIDC of the year, according to CVM records. The Brazilian market has closed BRL2.22bn in structured deals using the FIDC format through the end of July, up from BRL2.16bn in the corresponding period of 2009. Globex, which specializes in home appliances, electronic goods and furniture, was acquired last year by fellow retailer CBD, operator of Pao de Acucar supermarkets.