Brazil’s BIC Pulls Local Debt

Brazilian leasing company BIC Leasing says it is halting a planned BRL200m bond issue, citing market conditions. The company will decide whether to resubmit the issue for regulatory approval in 60 days. HSBC and Itau were joint leads. Proceeds were to be used for new leasing business. The notes, were to be issued in a single tranche and pay up to 17% over the DI rate. Moody’s has assigned it a Ba1 global local currency subordinated debt rating and a Brazilian national scale debt rating of Aa2. Fallout from Banco Panamericano’s regulatory troubles has forced Banco BVA to postpone a 2013 bond it had begun marketing last week, according to investors. Concerns over the mid-sized Brazilian bank are casting a bad light over the entire sector.