Daycoval Prices $100m Bond

Brazil’s Banco Daycoval has sold $100m in 2011 bonds priced at 99.67 with a 7.250% coupon to yield 7.375%, in line with initial guidance of 7.375% area. The BB- rated issue comes about one month after the mid-sized bank placed $125m in 2010s to yield 7%, and was done to capture some of the demand the bank felt it left on the table in that sale. Demand for the 2011 series was about $130m, according to a bank official. The deal is the second from a $1bn program to boost the bank’s lending base as it expands. Banco Votoratim, Itau and HSBC managed the transaction.