Caixa Aims Bond

Brazil’s Caixa Economica Federal has emerged with yield guidance of low UST+200bp-area, according to sources following the process, for what is expected to be a new 2017 bond of as much as $1bn. The state-owned lender is scheduled to wrap up US, European and Asian investor meetings today, with pricing by the end of the week. What would be a debut for BBB/Baa1 Caixa is being compared to Banco do Brasil’s 2017 bonds, trading at G-spread of 204bp. Bank of America Merrill Lynch, Deutsche Bank and HSBC are managing the process.