Daycoval Continues Brazil Bank Spree

Brazil’s Banco Daycoval has raised $300m from the sale of 2016 bonds, less than some had expected. The BB bond priced at 99.472 with a 6.250% coupon to yield 6.375%, the tight end of 6.500% area guidance. Proceeds will be used to extend the bank’s funding structure and to enable new business generation. Goldman Sachs, HSBC and Standard Chartered managed the sale. Daycoval is the third from the sector to issue since the Banco Panamericano crisis drew $450m in orders, according to a banker on the sale. Issues from Cruzeiro do Sul, Banco Safra and now Daycoval have demonstrated that demand for the mid-tier is still there, through Daycoval was heard initially looking for as much as $500m.