Sabesp makes local bond return

Sabesp makes local bond return

Debt Capital Markets Corporate & Sovereign Strategy Debenture Fixed Income Project & Infrastructure Finance Energy Electricity Renewable Wind Rule 476 Brazil

Sabesp, the São Paulo state water company, has made its return to the local debt market with a two-part deal for BRL867m ($216m), according to the capital markets association Anbima.

The lead coordinator BTG Pactual priced BRL492m in five-year debentures at 49bp over the DI interbank lending rate and BRL375m in eight-year notes at 63bp over the DI, according to Anbima.

Sabesp said last month that it would use the money to pay off debt due this year. The company cancelled a BRL750m deal in July last year, due to "domestic market volatility." It sold BRL750m in local notes in February 2018, also led by BTG Pactual.

BTG Pactual also coordinated the second debenture sale this year by the local renewable energy company Omega Geração, according to Anbima.

Omega issued BRL642m in a three-part deal with BRL309m in five-year notes at 120bp over the DI, BRL183m in seven-year notes at 560bp over the IPCA consumer price index and BRL150m at 500bp over the IPCA. 

Omega sold BRL150m in debentures for two wind power projects in February this year. 

Taesa, the energy transmission division of the Minas Gerais state power company Cemig, worked with Santander on a BRL1.06bn debt sale in the local market, according to Anbima.

The company sold BRL850m in seven-year notes at 108% of the DI and BRL210m in five-year notes at 550bp over the IPCA.

Taesa said in December last year that it plans to issue BRL850m in debentures to finance recent acquisitions. It sold BRL244m in 14-year debentures in February.

Next up, the chemical company Unipar Carbocloro plans to issue BRL210m in six-year debentures in the local market, according to a report from Fitch Ratings.

Fitch gave the upcoming notes a AA-(bra) rating on the local scale, saying Unipar could set aside some of the proceeds to fund future acquisitions.



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