Banco Nordeste Opts for USD Bond

Banco do Nordeste do Brasil generated close to $1bn in orders for a new $300m 2019 bond, opting to sell a dollar deal over a BRL. “The appetite for BRL exposure was lukewarm and people got nervous and so the issuer opted for a dollar transaction instead,” said a banker following the trade. The Brazilian development bank priced the Baa2/BBB senior unsecured notes at 99.257 with a 4.375% coupon to yield at the tight end of 4.500% area guidance revised from an earlier 4.625%. Leads pinned an approximately flat concession to its existing curve, and the bond was seen 25bp-30bp wideof Banco do Brazil’s 2020s. Demand was heard coming from a mix of institutional and retail accounts with over 100 accounts participating. Proceeds are marked for general corporate purposes. BAML, HSBC and Itau managed the 144a/RegS transaction. Banco do Nordeste last issued in 2010, when it raised $300m in its first dollar bond transaction since 1997. The 3.625% 2015 bond priced to yield 3.782%, through Deutsche Bank, HSBC and UBS.