BB Votorantim Highland infrastructure FIDC raises cash

A BRL300m ($131m) securitization of infrastructure project debt using Brazil’s Fundo de Investimento em Diretos Creditorios (FIDC) format closed its first subscription period on December 30. Brazilian regulators approved the FIDC BB Votorantim Highland Infraestrutura on December 20, opening the way for investors to commit to the fund in six monthly subscription periods running to May 2014. 85% of the investments offered are 12-year senior instruments. Mezzanine notes with the same tenor make up 10% of the fund and junior notes, with a 15 year tenor, make up the remainder. The deal is understood to benefit from Brazilian laws that allow tax benefits for funds that invest infrastructure. Votorantim Asset Management manages the fund, and Highland Capital Management is investment consultant. Banco Votorantim and Banco do Brasil are managing the placement of the deal.