Voto Says Not Planning Dollar Issue

Brazilian industrial group Votorantim is not considering a dollar bond in the immediate future, a company spokesman tells LatinFinance. The shop had recently been heard sounding investors for a possible benchmark-sized international bond through the Votorantim Participacoes holdco, DCM bankers say. It had considered an offering last year, apparently though JPMorgan and Credit Suisse, when the Votorantim Celulose e Papel unit was preparing to buy a stake in rival Aracuz Celulose. After successful completion of a BRL2.7bn purchase of 28% of Aracruz in January, VCP agreed last week to buy another 28% chunk, raising its total stake to 84%. VCP has also launched a rights offering targeting up to BRL4.2bn. Separately, Brazil bankers await the winner of a Banco do Brasil mandate expected soon for a similar benchmark sized dollar deal, as well the result of an RFP from utility Eletrobras. The failure of Cemex to place a deal, as well as a lukewarm reception to Digicel, underscore the difficulties faced by LatAm issuers in a highly volatile bond market.