Demarest advises BRB on R$55bn securitization

Demarest advised BRB – Banco de Brasília on Brazil‘s securitization of public credit rights conducted under Complementary Law 208/2024, in a transaction totaling BRL55.3 billion — marking an unprecedented milestone in the Brazilian capital markets.

The transaction involved the assignment of tax and non-tax receivables registered as outstanding debt of the Federal District, with an aggregate value of BRL55.3 billion, in favor of Vert Companhia Securitizadora, which issued debentures backed by such receivables. The issuance comprises five series organized in a cascade of subordination structure. The senior and mezzanine series were the subject of a public offering coordinated by BTG Pactual, amounting to R$1.0 billion, while the subordinated series were placed privately with the Federal District.

As a result of the transaction, the Federal District may gain additional fiscal space to enable its participation in BRB’s capital increase — currently the largest private capital increase by a publicly traded company in Brazil, a transaction also advised by Demarest. 

Demarest’s team was led by partners Thiago Giantomassi and Virginia Mesquita, supported by associates Beatriz Marino, Cintia Eguchi, Isadora Barretto Almeida, and Rodrigo Tragante.