BNDES Heard Eyeing CHF250m 5-Year

Brazilian development bank BNDES is considering a CHF250m ($296m) 5-year bond after meeting Swiss accounts last week, says an investor following the process. Timing has yet to be determined; but the borrower is expected to announce more details as soon as this week if market conditions are benign enough. The credit’s quasi-sovereign status will no doubt be a plus in the Swiss franc market after Moody’s upgraded the Brazilian sovereign Monday to Baa2 from Baa3. “Investors’ response has been solid and ties in with Brazil’s [growing] economy and recent sovereign upgrade from Moody’s,” a banker involved says. BNDES last raised EUR750m in its first euro-denominated bond sale in September, pricing a 2018 at 99.298 with a 4.125% coupon, to yield 4.243% in a transaction that generated more than EUR2bn in orders. The possible CHF tap is part of BNDES’ plan to diversify its investor base, bankers say, and comes in line with former issues done in USD and EUR. This would be the second CHF issue for the Baa2/BBB rated bank following a 2007 CHF150m issuance led by Credit Suisse. On this occasion BNP Paribas and Credit Suisse took the borrower on the road.