Cruzeiro do Sul Grows Bond on Demand

Brazil’s Banco Cruzeiro do Sul increased to $110m from $100m its Reg S 2010 bond offering, priced at 99.772 with a 7.38% coupon to yield 7.50%. The Reg S deal saw demand of just over $110m, says a banker managing the sale, from at least 70 different buyers. The Ba1 sale follows Cruzeiro’s $100m 2009 bond sale in February, which opened the 2-year international market for mid-size Brazilian banks. Issuers including Banco Fibra and BMG have joined the parade, demonstrating that this size and tenor is useful to raise funds while waiting for credit conditions to improve. BCP and UBS managed the sale.