Braskem Returns with Surprise Retap

Braskem returned for its fourth DCM transaction this year, reopening its 2041 bonds to add $250m. The 7.125% coupon notes reopened at 101.75 to yield 6.983%, in line with 101.50 (+/- 0.50) guidance. The bonds were trading at 101.75 late Thursday, according to a trader. Leads were heard pricing the deal inside the 2041’s secondary levels, quoted at 101.50 before announcement. Demand for the reopening hit $1.8bn. In the current challenging market conditions, retaps are the best course of action for borrowers that already have well established curves as they tend to be cheaper than new benchmarks and satisfy investors’ need for extra liquidity, bankers say. BAML, HSBC and Morgan Stanley led the sale, which brings the outstanding size to $750m.