Safra Tees Up Tier 2 Bond

Brazil’s Banco Safra is planning a 10-year Tier 2 dollar bond. It is yet another Brazilian bank securing funds while rates and market volatility are low. The bank plans to meet investors in Switzerland Monday, London and LA Tuesday, and Boston and New York Wednesday, with a transaction to follow. BAML, JPMorgan and UBS are managing the process. Peer Banco Daycoval will also meet investors next week, following a $400m 2016 this week from Cruzeiro do Sul. Cruzeiro’s Ba2/BB minus 2016 bond priced at 99.498 with an 8.250% coupon to yield 8.375%, the tight end of 8.500% area guidance. The bond traded up slightly Wednesday afternoon, according to investors. “We are seeing tremendous demand for financial institutions from the region,” says a LatAm DCM banker away from the Safra deal. Concerns that US interest rates will rise later in the year are motivating banks to seek finds now, he says.