AG Tightens Local Bond Sale

Brazilian builder and concession operator Andrade Gutierrez has completed the sale of BRL639.4m ($307.4m) in domestic bonds according to Anbima, getting interest rates mostly inside of targets. The total came towards the lower end of a BRL600m-BRL800m range it had set, and was split into 3 parts. A BRL82.9m 2017 portion pays the DI+1.15%, in line with the target it set, and amortizes in equal parts in years 4 and 5. A BRL78.5m 2019 pays the DI+1.38%, coming under a DI+1.40% limit, and amortizes in equal parts in years 6 and 7. The bulk of the sale went to a BRL478m inflation-linked 2022 tranche, which pays 6.20%, under a 6.80% limit, and amortizes in equal parts in years 8, 9 and 10. The proceeds are destined to buy shares of the Andrade Gutierrez Concessoes unit and for other purposes. Santander managed the sale, done under the Rule 476 restricted format and rated AA+ on a national scale.