Marfrig markets CRAs

Marfrig markets CRAs

Debenture Debt Capital Markets Fixed Income Brazil

Brazil's Marfrig plans to sell BRL250m ($60.1m) in agribusiness receivables certificates, or CRAs, through the local securitization firm RB Capital, according to a report from S&P Global.

As part of the deal, RB Capital will buy four-year debentures from Marfrig at 104% of the DI interbank lending rate as a guarantee and then offer the CRAs to investors.

S&P gave the CRAs a brAA+ rating on the local scale, saying the debentures behind them stand at the same level as Marfrig's other senior unsecured debts.

Last month, Marfrig sold $500m in so-called transition bonds to develop more sustainable ranching practices. The company claims it has not purchased cattle from deforested areas in the Amazon biome since at least 2009.

Marfrig had considered merging with local rival BRF to create one of the largest meat producers in the world, but the companies called off the deal in July.

The news that moves markets

Read the day's transactions and rumors right in your inbox.

Start free trial