Brazilian Telco Preps Domestic Issue

Telemar is preparing to sell up to BRL3bn in bonds on the local market, pending shareholder approval. The Brazilian telecom, also known as Oi, is considering selling both 2011 and 2012 notes, through its Telemar Norte Leste unit. Shareholders will vote on the plan March 23. Telemar faces bridge maturities from the financing of last year’s Brasil Telecom acquisition, having borrowed BRL3.6bn in 1-year notes in July and BRL2bn of the same tenor in December. Telemar has also been heard considering a dollar bond in March or April, after a $1.5bn issue of 5 and 10-year bonds was pulled in September.