SRM raises US$153.5M in debentures, doubling its 2023 debt issue
What's the deal? Brazil's Grupo SRM has raised US$153.5M through a debenture issue, with Patria InvestimentosDealroom has a profile for this one. Try Dealroom → among the investors. The four-year notes were structured in senior, mezzanine, and junior tranches and reached full distribution, according to the company.
What's the endgame? The proceeds will fund the expansion of SRM's credit operations, including receivables and commercial notes. Eduardo Siqueira, director of investor relations and debt issuance, said the operation would "sustain the growth of the business."
Why now? The issue doubles SRM's debut US$76.7M debenture offering from 2023. "We doubled that volume by reaching US$153.5M in a second issue and counted on the participation of reference investors in the market," Siqueira said.
Founded in 2004, SRM provides credit to mid-to-large companies, fintechs, and small financial institutions. Its annual credit volume tops US$2.56B, and assets under management reach US$1.79B. The group comprises an asset manager, a brokerage, a payment institution, and a securitisation firm.
What could go wrong? In 2024, SRM Asset bought manager Empírica Holding from Reag InvestimentosDealroom has a profile for this one. Try Dealroom →, a firm probed in Operation Carbono Oculto. The deal, which followed Reag shedding assets amid a Federal Police investigation, could reach US$19.2M — US$6.4M fixed and US$12.8M tied to performance through December 2029.
The signal: S&P Global assigned ratings of 'brAA (sf)' to the senior class and 'brBBB- (sf)' to the mezzanine. The full placement and investment-grade marks point to steady appetite for structured private credit in Brazil.
Read more: Valor Econômico
