SRM raises R$600M in debentures, doubling its 2023 debt issue

What's the deal? Brazil's Grupo SRM has raised R$600 million 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 R$300 million debenture offering from 2023. "We doubled that volume by reaching R$600 million 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 R$10 billion, and assets under management reach R$7 billion. 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 R$75 million — R$25 million fixed and R$50 million tied to performance through December 2029.

The signal: S&P GlobalDealroom has a profile for this one. Try Dealroom → 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