Itau Readies Tier 2 Bond

Itau is preparing to market a new 10-year benchmark-sized Tier 2 bond, according to bankers on the deal. A 3-team roadshow visiting the US, Europe and Asia begins Monday and wraps up Wednesday. Itau, Goldman Sachs and Morgan Stanley are managing the transaction. Itau is rated Baa2/BBB and could raise $500m-$1bn in this market. Brazilian banks are taking advantage of positive issuing conditions. An expected $750m 2015 from Santander Brasil being talked at US Treasuries plus 185bp area could come as soon as today, as could a 2020 Tier 2 from ABC Brasil, expected to raise $200m-$500m at 8.25% area.