Parana Closes Incredible Shrinking Bond Deal

Brazil’s Parana Banco has closed books on a $35m bond issue, an offer that had originally been set for $100m and was cut to $50m mid-July. The 2010 notes with a 7.750% coupon priced at 99.717 to yield 7.875%, in line with guidance given at the conclusion of a June roadshow. Amid increasingly challenging market conditions, demand reached only $35m, with a few orders still coming in after books closed, according to an official familiar with the transaction. Subscription came mostly from European institutional investors. Queluz Securities managed the sale.