Cofide Gets Sub 5% Yield

In what proved to be a positive day for the markets, Peru’s development bank Cofide was able to push pricing tighter on a $400m 10-year bond debut. Whispers of mid 300s turned into talk of 5.125% area and then to revised guidance of 5% (+/-5bp) before the deal was priced at 98.437 with a 4.75% coupon to yield 4.95% or UST plus 311.1bp. The credit was largely comped against the sovereign curve, where the 2019s were trading on a G-spread of 182bp, and against 100bp spread differential between Brazil’s own development bank BNDES and its sovereign. In the end the borrower managed to beat its stated goal of achieving 150bp over the sovereign. Books were heard reaching some $2.85bn in size, with 150 participating investors. The 144A/RegS senior unsecured issue is rated BBB and carries a change of control put at 101. Deutsche Bank and JPMorgan led.