Category: Bonds

MRV Engenharia has wrapped up a BRL500m ($266m) sale in Brazil’s domestic bond market, according to the CVM. The homebuilder’s 2017 debenture pays the DI+1.50%, in line with a limit set previously, and amortizes in 2 equal parts in each of the final 2 years. MRV elected not to sell any of the BRL500m through a 2018 tranche. It is raising funds to improve its debt profile. Bradesco and Caixa Economica Federal managing the sale, rated AA minus on a national scale.

ViaOeste, a toll road concession unit of Brazil’s Companhia de Concessoes Rodoviarias (CCR), has completed the sale of BRL750m ($399m) in Brazil’s local bond market, according to the CVM. The operator’s 2017 bond pays 108.3% of the DI, inside of the 109.5% limit. ViaOeste is raising funds to improve its debt profile, and to pay dividends. Bradesco, BTG Pactual and Itau managed the sale, rated Aa1 on a national scale.

Banco do Nordeste do Brasil generated close to $1bn in orders for a new $300m 2019 bond, opting to sell a dollar deal over a BRL. “The appetite for BRL exposure was lukewarm and people got nervous and so the issuer opted for a dollar transaction instead,” said a banker following the trade. The Brazilian development bank priced the Baa2/BBB senior unsecured notes at 99.257 with a 4.375% coupon to yield at the tight end of 4.500% area guidance revised from an earlier 4.625%. Leads pinned an approximately flat concession to its existing curve, and the bond was seen 25bp-30bp wideof Banco do Brazil’s 2020s. Demand was heard coming from a mix of institutional and retail accounts with over 100 accounts participating. Proceeds are marked for general corporate purposes. BAML, HSBC and Itau managed the 144a/RegS transaction. Banco do Nordeste last issued in 2010, when it raised $300m in its first dollar bond transaction since 1997. The 3.625% 2015 bond priced to yield 3.782%, through Deutsche Bank, HSBC and UBS.

Braskem took advantage of a decent tone in the markets Thursday to raise $500m through a new 2022 bond. By whispering 5.625%-area and emerging with 5.500%-area guidance, the Brazilian petrochemical producer was seen offering a decent concession and soon generated a book that reached a healthy $2.8bn with some 250 accounts putting in orders. “Braskem played it safe with a smaller size, allowing it to come back a later date and make a few retaps,” says an investor who saw a 5bp-10bp concession against Braskem’s existing curve. In the end, the bonds priced at 99.809 with 5.375% coupon to yield 5.400%, at the tight end of guidance. The 5bp-10bp concession level comes versus Braskem’s existing 2021 bonds, trading at 104-105 or 5.19% yield pre-announcement, and adding 15bp-18bp for curve extension, according to investors and bankers. The issuer saw demand from a good mix of institutional, and retail accounts from across the US, Europe and Latin America. The paper was trading down 0.01 point in the grey market Thursday afternoon, according to an investor. Banco do Brasil, BTG, HSBC and JPMorgan managed the Baa3/BBB minus sale. Braskem’s previous transaction was a reopening of its 7.375% perpetual bonds in February, adding $250m to the original $450m amount, at a 7.345% yield, through Deutsche Bank, Itau and HSBC.

Brazil’s OAS is planning a BRL300m debenture sale, according to Fitch, which assigns a BBB national scale rating. The 2015 bonds feature an 18-month grace period and are guaranteed be Construtora OAS. Proceeds are destined to improve the builder and engineer’s debt profile. Investor relations officials did not respond to a request for additional details.