Peru Bank Readies Debut DPR

Peru’s Scotiabank is heard preparing to issue a new set of bonds backed by remittances and other financial receivables, apparently its first such deal. DPR deals in Peru and Brazil have tended to carry 5-year tenors and be sized in the $100m-$150m range. Credit Suisse is heard leading the deal. The last DPR to be issued in LatAm came from Interbank, also in Peru. The bank sold a 7-year final 5-year average life bond worth $121.2m, at Libor plus 425bp. Deutsche Bank led. And in late March, Bradesco placed a $100m DPR via WestLB. Pricing came in the mid to low 200bp area over Libor, say people familiar with the terms. Other Peruvian banks including BBVA and BCP are also looking at doing DPR issues, say bankers close to those institutions.