ABC Brasil Raises Tier 2

Banco ABC Brasil has sold $300m in Tier 2 bonds in its debut dollar market issue. The Ba1 rated mid-sized corporate credit specialist controlled by the Arab Banking Corporation priced the 2020 at 98.311 with a 7.875% coupon to yield 8.125%, or UST plus 428.8bp, in line with 8.125% area guidance. The book reached more than $600m, according to bankers on the deal, with more institutional participation than had been anticipated. The deal went 32% to European accounts, 31% to North America, 22% to LatAm, and 15% to Asia, a banker on the deal says. A very small percentage sold to the Middle East. Buyers include 32% fund managers 23% private banks, and 24% banks. ABC had met investors last year and again in February, before visiting the US, Asia, Europe and the Middle East immediately preceding the deal. The bank had been heard aiming for $200m-$250m. The bond traded up about 0.5 points Wednesday afternoon, according to investors. HSBC, Itau, and Santander were joint bookrunners on the 144a/Reg S trade.