Banks Define Bond Plans

Brazilian mid-size lenders Banco Daycoval and Banco Safra are each closing in on dollar bond transactions. BBB minus rated Safra is heard whispering UST plus mid-300bp for a 10-year $500m Tier 2 bond. BAML, JPMorgan and UBS are managing the sale, which is scheduled to finish roadshowing today. Meanwhile, BB rated Daycoval plans a 2016 bond, according to Fitch, which notes that proceeds will be used to extend the bank’s funding structure and to enable new business generation. The issue is expected to be under $500m, and yield around the mid 6% area, investors say. Goldman Sachs, HSBC and Standard Chartered are managing investor meetings, also scheduled to conclude today.