Pine Sets Tier 2 Guidance

Brazil’s Banco Pine has set price guidance of 8.875% area for a new 7-year Tier 2 bond, expected to price late today or Monday. The Ba3 transaction is expected to be at least $150m in size, and follows an Asian, US and European road show. HSBC, Credit Suisse and Banco Espirito Santo are leading the sale. Interest in subordinated bank bonds is picking up, with a Baa2 rated $750m 10-year Tier 2 from Banco Votorantim that priced to yield 7.375% last week. Pine’s last dollar bond was a 7.375% coupon $150m 2-year deal in June 2008.