EcoRodovias Completes Debenture

EcoRodovias has completed an BRL800m ($394m) domestic bond sale, according to regulatory documents. The road operator was able to tighten interest rates below target when bookbuilding was completed last week. A BRL240m 2018 tranche pays the DI+0.79%, coming tight to a DI+1.25% ceiling. A BRL160m inflation-linked 2019 tranche, pays 5.0%, tight to a 6.50% limit. The largest allocation went to the BRL400m inflation-linked 2022 portion, paying 5.35%, inside of a 6.85% limit. The first two tranches amortize during the final two years, and the third in the final three. The issuer elected not to exercise an overallotment option. Proceeds from the sale will refinance existing debt and fund working capital. Itau, BTG Pactual and Bradesco managed the sale, rated AA+ on a national scale. Brazil’s domestic market is undergoing a busy stretch of debenture issuance, which is hoped to indicate the start of a longer-term trend driven by lower Selic rates changing investors’ priorities toward corporate debt. On deck are pricings from state utility Eletrobras (BRL2bn), infrastructure operator Triunfo (BRL350m), road operator Triangulo do Sol Auto-Estradas (BRL620m) and Algar Telecom (BRL220m).