Brazil’s national development bank BNDES raised $1bn in 4.75% 2024 green securities on Tuesday, just days after it revising documentation related to the bonds, LatinFinance understands.
Bookrunners Bank of America Merrill Lynch, Credit Agricole and JPMorgan started initial price talk (IPTs) in the low 5% area, before tightening at guidance to 4.85% area, debt capital markets (DCM) sources said.
Leads then launched the transaction at 4.8% after orders peaked at $4bn, DCM sources said. The bonds priced to yield 4.8%, or a reoffer price of 99.706.
Investors told LatinFinance the transaction had offered some value, after BNDES’ existing 5.75% 2023s were seen at 4.5% in yesterday’s secondary market. These notes have tightened from 4.55% ten days ago, a DCM banker away from the transaction said.
“[BNDES] can issue at this price,” one investor said when referring to the tight yield on offer, because of the state-owned bank’s government support. He also said, BNDES remained a worthy credit despite Brazil’s recession. This transaction ended a three-year hiatus for BNDES in the cross-border bond market. In April 2014 it raised $1bn in 4.054% 2019s and added $500m to its 5.322% 2023s.
More information here.