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BNDES and bonds co-exist on Dom Pedro

19 August 2010

Read more: [odebrecht] [toll] [bndes] [artesp]

Odebrecht’s proposed R815 billion ($446 million) bond refinancing of the Dom Pedro I corridor concession was the biggest test yet of investor appetite for infrastructure-backed non-recourse project bonds in Brazil. In the face of strong demand, project company Rota das Bandeiras’ underwriters exercised their greenshoe options and sold R1.1 billion, enough to pay back the entire bridge loan used to pay for the concession. The deal opens the door to an source of infrastructure financing in the country.

The refinancing, led by underwriters Banco Santander (lead) and Banco do Brasil, Banco Itau and Banco Bradesco, was the first non-recourse project financing for a toll road in Brazil. The senior secured notes were issued in two R550 million tranches, the first maturing on 15 January 2022 and the second on 15 July 2022. Series one has a two-year grace period and carries a coupon of 9.57% over the variation...


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