StoneCo Ltd. (Nasdaq: STNE) (“Stone”), a leading provider of financial technology solutions that empower merchants to conduct commerce seamlessly across multiple channels, today announces that it has completed the issuance of R$580 million in FIDC (“Fundo de Investimento em Direitos Creditórios”) quotas, raising R$493 million in third-party capital for its credit solution for SMBs in Brazil.
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The new credit FIDC is structured with senior and mezzanine quotas held by institutional investors for a 36-month period, while Stone holds the subordinated quotas. The senior quotas reached R$348 million with a brAAA rating and yield of CDI (basic interest rate) + 4% per year. The mezzanine quotas reached R$145 million with a brBBB rating and yield of CDI + 7% per year. The subordinated quotas held by Stone totaled R$87 million.
Despite the first issuance of a new FIDC product usually having a higher cost than an operation in steady state, Stone decided to increase the offer size from the initial size of R$340 million to R$493 million. Total demand was nearly R$1 billion, which we believe creates a healthy path for future issuances at a lower cost.
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This is an important milestone for Stone, which advances on its strategic roadmap to become a full financial platform for SMBs. This type of transaction will enable Stone to scale further its credit solution while limiting the credit risk exposure.
XP Investimentos Corretora de Câmbio, Títulos e Valores Mobiliários S.A. acted as Lead Bookrunner in the offering, and XP Investimentos Corretora de Câmbio, Títulos e Valores Mobiliários S.A., Banco Bradesco BBI S.A., Banco Itaú BBA S.A. and Banco Votorantim S.A. collectively acted as Bookrunners in the offering.
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