Agibank completes R$2.1bn receivables-backed financing
Its third FIDC issued Class A units backed by INSS payroll loans, with an eleven-year final maturity.
Agibank announced completion of a R$2.1bn Class A issuance by FIDC Agibank III on October 1. The two-series transaction is backed by receivables from payroll-deductible loans to INSS beneficiaries and is directed at professional investors.
The units have a final maturity of 132 months and pay CDI plus 1.05% a year. Oliveira Trust administers and manages the structure, with Agibank Asset Management as co-manager. The issuer said Moody’s Local assigned the units an AAA.br credit rating.
For the bank, securitizing loan receivables provides another source of long-term liquidity alongside its other funding channels. Agibank is a subsidiary of New York-listed Agi Inc.; this transaction finances its credit operation through a receivables fund.
Use of funds
Diversify long-term funding for INSS payroll-deductible lending