Voto Gives Guidance to Hostile Market

While turmoil in the global markets causes issuers to rethink plans, Brazil’s Banco Votorantim appears to be pressing ahead with a bond issue. It has put out 4.375% area guidance on a new 2013 bond. Investors expect a $500m transaction and pricing is expected early next week. The Baa2 deal through BNP, Banco do Brasil, Bradesco and UBS will add some senior debt to the bank’s capital structure following a subordinated sale last moth. The 2020 Tier 2 sale saw demand of $3.6bn and priced at par with a 7.375% coupon. BofA-Merrill Lynch, Banco do Brasil, Deutsche Bank and Itau managed that sale.