Santander Brasil to Close Financing Today

Santander Brasil, through a special purpose vehicle backed by future USD and EUR cash flows generated by its electronic remittance business, will today close a dual tranche $250m private placement, according to market participants. The first tranche is a 5-year $150m loan provided by SMBC and a 7-year fixed rate bond. Pension funds and institutional investors will likely be the main buyers, says a banker with knowledge of the transaction. SMBC Nikko Securities, a subsidiary of SMBC, was the arranger. It was also the co-placement agent together with National Australia Bank. The transaction has been rated A+ by Fitch and A2 by Moody’s. The banker says the unusual bond/loan structure may have been selected by the issuer to increase the investor base and maximize the amount raised.