Interbank Coming Wide to BCP

Peru’s Interbank is expected to price toward the wide end of an expected 30bp-50bp over Banco de Credito del Peru’s recent issuance, according to a banker away from the deal, for a low to mid 300bp area spread over UST. BCP, Peru’s largest bank, sold $800m in new 2020 notes, earlier in the month. The BBB/Baa2 deal priced at 99.763 with a 5.375% coupon to yield 5.406%, or UST plus 265bp. Interbank’s 10-year $400m bond is rated Baa3 and coming through JPMorgan and BAML. The banker says that, like BBVA Continental, Interbank is raising dollars in response to the central bank of Peru’s increased foreign currency reserve requirements.