Davivienda Sets Bond Target

Banco Davivienda has given 6%-area guidance for a benchmark-size 2022 subordinated Tier 2 bond, expected to price as soon as today. The third-largest Colombian lender is looking to help fund the $800m acquisition of HSBC subsidiaries in El Salvador, Costa Rica and Honduras agreed in January. The Baa3/BBB minus rated bank wrapped up fixed-income investor meetings in New York, Los Angeles, and Medellin Wednesday. Leads are looking at Bancolombia’s subordinated $620m 2020 bonds, which were trading at 5.30% yield Wednesday, as a direct comp. Moody’s, when assigning its Ba1 rating, suggests a size of up to $500m. The issuance is expected to be a non-preferred, non-convertible subordinated debt with no coupon deferral option, the agency says. Credit Suisse and JPMorgan are managing the sale.