Bradesco Retaps Tier 2

Bradesco reopened its 2021 Tier 2 bonds for $500m, at about a 0.8 point concession. The 5.9% of 2021 bond reopened at 98.945 to yield 6.042%, or UST plus 262.5bp, at the tight end of 262.5bp-275.0bp guidance. The bond had been heard at 99.6-100.0 Thursday morning prior to the announcement, according to investors, and finished Thursday up 0.25 points from the reopening. The sale drew about $1bn in orders, according to a banker on the sale. The proceeds are marked for replenishing Tier 2 capital and for general corporate purposes. After the retap, the total outstanding size for both the original and the retap is $1.6bn, though the offer was set to be increased by up to $50m at the same terms overnight during Asian market hours. Bank of America Merrill Lynch, Bradesco, HSBC and JPMorgan managed the sale, done through the Cayman Island unit and listed in Luxembourg. Bradesco had met investors in November about a global BRL sale, anticipated as a 2015 at about BRL500m, and is heard to still be considering the issue. Bankers are still actively pitching Tier 2 issuance to LatAm banks this year, after $8.67bn in issuance in 2010 through 17 deals, as growing institutions continue to need the capital. The deal follows a $530m 2016 senior bond from Bancolombia Wednesday, with a possible Euro bond on the way next week from Banco do Brasil.