The Brazilian arm of Italian telecommunications company TIM is planning to sell as much as BRL5 billion ($900 million) worth of debentures in what will be the subsidiaries first issuance since 2023.
TIM Brasil plans to issue 2030 notes at the DI interbank lending rate plus 0.8% and 2032 notes at the DI plus 0.95%, according to the minutes of a board meeting. The DI was 14.9% on Wednesday.
The firm said it will use the proceeds to redeem a previous debenture issue and to pay dividends. The transaction is being coordinated by UBS, with BTG Pactual and Caixa Econômica Federal as joint bookrunners.
Fitch, which rates the offering AAA, said the company has conservative financial indicators, including low leverage and robust liquidity, according to a report published on Tuesday.
TIM Brasil is the country’s largest mobile phone operator after Claro and Vivo.