Vivo Joins BRL Short Paper Crowd

Brazil’s Vivo has started a BRL500m 1-year promissory notes issue, paying interest at 106.5% of DI. The cellular operator jointly owned by Telefonica and Portugal Telecom joins a growing list of Brazilian issuers turning to large placements of 12 month paper in more volatile market conditions. Fellow telecom Telemar is preparing to place BRL3.6bn at DI+160bp. Promissory note registration in the year to the end of June was BRL9.265bn, according to the CVM, some 233% of the amount placed in the corresponding period of 2007. Vivo plans to use the proceeds to pay its outstanding debentures. Caixa Economica Federal is managing the operation.