In LatinFinance, White & Case partner John Guzman discusses Eletrobras becoming the first company to issue a new type of infrastructure bond with tax benefits in Brazil.
Guzman, who co-led the White & Case team advising Eletrobras on the US$750 million bond offering, notes that, "more Brazilian firms are considering selling" these bonds, which exempts issuers from withholding tax payments.
In regard to which other kinds of companies may be interested in such a bond issuance, he points to the energy, infrastructure and sanitation sectors.
"There was a lot of demand for it," Guzman says, "so I think that companies that look at this model would be interested in doing this, because investors see potential for infrastructure growth in Brazil."
Looking ahead, Guzman says he, "expects at least one such deal to be launched in the first quarter of next year."
See the full LatinFinance article here.
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