Peru Banks Plot Sub Debt Issuances

Two large Peruvian banks are heard preparing of subordinated debt offerings to be priced in the coming month. The two deals, each estimated in the $150m-$200m range, are meant to fortify Tier 1 and Tier 2 capital requirements, say bankers familiar with the process. The transactions could take one of two forms: a 15 NC5 bond for Tier 2 capital requirements, which is the more likely scenario, or a 30-year NC10 for Tier 1 capital requirements. For Tier I, a 60-year maturity is also a possibility, say bankers familiar with this type of transaction. Likely issuers include Scotiabank, Interbank, BBVA Continental and BCP. Among the likely houses underwriting the deals, which are placed with international investors in the 144A market, are Citi, Merrill Lynch, Credit Suisse and Deutsche Bank, says one executive close to a Peruvian bank. The hybrid deals would follow in the footsteps of a dramatically reduced offering by Banco Industrial of $30m in 60-year NC10 securities that carry a 9% handle in the first 10 years. Credit Suisse led that offering, originally launched at $100m. Separately, BCP and BBVA are set to bring MT100 future flow securitizations as early as this month via Wachovia and Standard Chartered for the former and Sumitomo for the latter.