AutoBan Completes Debenture

Brazil’s AutoBan has completed a BRL1.1bn ($539m) domestic bond sale that includes a tranche qualifying as an infrastructure debenture, according to the CVM, becoming the first widely-marketed deal to take advantage of the legislation allowing tax exemptions to investors. The toll road operator owned by Companhia de Concessoes Rodoviarias (CCR) had tightened pricing from initial expectations and upsized the 2017 debenture from BRL950m during bookbuliding last week. A BRL965m tranche pays 109% of the DI, inside of a 109.2% ceiling, and amortizes 4x annually beginning 2015. A BRL135m bullet inflation-linked tranche qualifying under the infrastructure law pays 2.71%, set to the yield of the government NTN-B bond plus 0.0%, in from an NTN-B plus 0.25% limit. Proceeds will go towards debt repayment and projects. As with most of the early sales using the infrastructure debenture format, AutoBan’s sale was directed entirely to Brazilian buyers, with DCM bankers expecting international participation only after the asset class has developed somewhat. Banco do Brasil, Caixa and HSBC managed the sale, rated AAA on a national scale.