BNDES Debenture To Include Fixed-Rate Coupon

Brazil’s development bank BNDES unveiled Tuesday details about its plan to issue BRL1bn in local debentures, including the fact that the 2011 tranche will include a fixed-rate coupon. If successful, the note would be the first ever Brazilian corporate bond to carry a fixed-rate coupon. The 2013 tranche will be priced over the IPCA inflation index. BNDES also said Bradesco BBI and BB Banco de Investimento will join UBS Pactual as lead managers and market-makers for the notes, which will be steered towards retail investors. One banker said a roadshow will be conducted in five cities in Brazil and the bond will likely be priced in the last days of July. As first reported by LatinFinance earlier this week, the principal aim of the forthcoming bond is to stimulate secondary trading activity in the illiquid corporate bond market.