CRT: Building blocks of Brazil’s first project finance bond

Rob Dwyer
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CRT was a natural candidate to open the project finance bond market in Brazil because the sponsors of Rodovias do Tietê are Atlantia Bertin Concessões (a 50/50 joint venture of Atlantia and Bertin), and Ascendi (a 60/40 joint venture of Mota-Engil and Banco Espírito Santo). They have experience of these structures in Europe.

The R$1.065 billion ($450.77 million) deal is rated Ba2 internationally and Aa2 nationally. The deal was led by global coordinator and bookrunner BTG Pactual, along with bookrunners Banco ABC, Espírito Santo, Safra and Morgan Stanley. This was the toll road operator’s second attempt to price a real-denominated bond following an aborted attempt to sell a R$650 million bond last year in a deal led by Barclays.

The transaction is a 15-year amortizing bond, paying inflation index Ipca plus 8%. The inflation-linked structure matches demand from Brazilian pension funds that seek Ipca-linked paper because their actuarial measures are adjusted...