Elektro Eyes Local Bond

Elektro is preparing a BRL300m ($190m) bond in Brazil’s domestic market. The utility and AEI subsidiary plans a two-tranche sale, with details and amounts to be specified during bookbuilding. A 2016 tranche will pay the DI plus up to 1.12%, and an IPCA-linked 2018 will pay a fixed rate determined by taking the yield on the government’s NTN-B bond and adding a 125bp spread. Proceeds are going to repay existing debt and for working capital. Banco do Brasil and HSBC are managing the sale, to be done under the rule 476 restricted format.