Cofide Quietly Builds Book on Debut

Peru’s development bank Cofide tested the waters Tuesday with mid-300bp whispers on what is expected to be $500m 10-year bond, the credit’s debut in the international markets. Pricing could come as soon as today. At that level, the borrower is in line with its long-held target of 150bp over Peruvian sovereign paper, and offers a nice pick up to Brazil’s development bank BNDES (Baa1/BBB), which has 2020s trading at around 242bp. Books were heard reaching around $500m early Tuesday, with investors expecting demand to be sufficiently strong to allow Cofide to reach its target size. The 144A/RegS senior unsecured issue is rated BBB and carries a change of control put at 101. Deutsche Bank and JPMorgan are leads.