Power Plant Seeks Infrastructure Debenture

Sponsors of the Termeletrica Pernambuco III power project plan to raise BRL300m ($135m) in infrastructure debentures in Brazil’s domestic bond market, according to regulatory documents. The project plans four series of 2025 inflation-linked debentures that vary slightly in their amortization schedule. The borrower expects to pay a fixed interest rate equal to that of the NTN-B government bond at the time of pricing plus up to 380bp. Investor meetings should start October 23, ahead of bookbuilding beginning November 27 and finalizing in December. The issuer is raising funds to repay BRL270m debt to Caixa Economica Federal. Itau is managing the transaction. The BRL450m 201MW oil-fired plant is located in the northeastern state of Pernambuco.