Andrade Gutierrez Readies Local Bonds

The board of Brazilian builder and concession operator Andrade Gutierrez has approved a BRL600m-BRL800m ($306m-$408m) domestic bond sale, it says. The plan allows for up to 3 tranches, with the exact amounts to be determined during the bookbuilding process. A 2017 portion paying the DI plus up to 1.15% amortizes in equal parts in years 4 and 5, a 2019 pays the DI plus up to 1.40% and amortizes in equal parts in years 6 and 7, and an inflation-linked 2022 pays up to 6.80% and amortizes in equal parts in years 8, 9 and 10. The proceeds would be used to buy shares of the Andrade Gutierrez Concessoes unit and for other purposes. The issuer does not comment as to who is managing the sale, done under the Rule 476 restricted format. S&P has assigned a AA+ rating.