BR Properties Increases Local Debt Target

BR Properties plans to raise BRL500m ($246m) in its first-ever domestic bond transaction, it says, up from the BRL400m it initially planned. The sale, scheduled to begin roadshowing today, could reach BRL675m if available overallotments are exercised. The commercial developer has also altered its interest rate expectations. The issue will have a 2017 tranche paying the DI plus up to 1.20% and an inflation-linked 2019 tranche paying up to 6.15%. The exact sizes and rates will be determined during the bookbuilding process, scheduled for July 13-26. The proceeds are targeted to repay short-term debt. Banco Votorantim, Bradesco, BTG Pactual, Citi, Itau and Santander are managing the sale, rated AA on a national scale.