Pine Plants Tier 2 at Wide End

A new Tier 2 from Brazil’s Banco Pine hit the wide end of guidance and shrank from its expected size by $25m to $125m, as continued risk aversion appears to still be complicating new issuance. The Ba3 rated 2017 transaction priced at 98.748 with an 8.750% coupon to yield 9.000%, or UST plus 588bp, the wide end of 8.875% area guidance. HSBC, Credit Suisse and Banco Espirito Santo led the sale, which followed an Asia, US and Europe road show. Pine’s previous dollar bond was a 7.375% coupon $150m 2-year deal in June 2008. Mexico’s BBVA Bancomer is expected to award soon a mandate for a $500m+ subordinated bond, while in the mid-size sector, BESI Brasil is marketing through Thursday a 2015 bond expected at $350m.