BBVA Continental Expected Today

BBVA Continental expects to price a $200m 2040 NC10 today, according to a banker on it. Official guidance is 7.5% on the BB/BBB minus trade. “It seems cheap if you compare it to other bank issues,” says a potential participant. The Peruvian bank is expected to use proceeds for general corporate purposes and to strengthen its balance sheet. A banker away from the deal says the issue is part of a larger trend among Peruvian banks in the wake of stricter dollar reserve requirements. Earlier this month, Peru’s central bank mandated an increase in reserves for foreign short-term borrowings, to 75% from 65%. BBVA and Credit Suisse are the leads.