Sabsep Starts Roadshow

Companhia de Saneamento Basico do Estado de Sao Paulo (Sabesp) has started the roadshow period ahead of a BRL1bn ($483m) sale in Brazil’s domestic bond market, according to a prospectus, with bookbuilding scheduled to begin February 6 and finish by February 20. The Sao Paulo water utility has the option of up to three tranches, with the final terms to be set during bookbuilding. A 2018 tranche pays the DI plus 0.85%, and amortizes in three equal parts during the final three years. An inflation-linked 2020 tranche pays up to 5.70%, and amortizes in two equal parts during the final two years. An inflation-linked 2023 tranche pays up to 6.15% and amortizes in three equal parts during the final three years. A 15% greenshoe is also available. Proceeds repay existing debt. Banco do Brasil and Bradesco are managing the sale, rated AA+ on a national scale.