Bradesco Hits Road for Tier-2

Bradesco started yesterday a US and European roadshow supporting the issuance of new 2019 Tier-2 bonds. The “benchmark” sized offer is expected by investors to be in the neighborhood of $500m, much more than the $200m+ first anticipated by bankers. The issue is the first from a large private Latin financial sector borrower since the credit crisis began and the first Brazilian Tier-2 since 2006, according to a banker on the deal. The roadshow is set to end Monday or Tuesday. The Baa3/BBB deal is getting 75% equity credit from Fitch. HSBC and Bradesco is managing the transaction. Also in the pipe is a $500m perpetual NC10 from Banco do Brasil, expected to be led by Citi and JPMorgan.