Brazilian Builder Gets 5x Demand

Brazil’s Construtora Andrade Gutierrez (CAG) has priced its inaugural $500m 2018 bond, building a book that reached around $2.5bn. The Brazilian builder priced at 99.440 with a 4.00% coupon to yield 4.125%, the tight end of 4.25%-area guidance and low-to-mid 4% initial talk. The bonds were seen trading up 0.25 points late Tuesday, according to traders. The Ba1 transaction raises funds to pay debt maturing in 2013 and 2014. BTG Pactual, JPMorgan and Espirito Santo managed. CAG is the second-largest construction company in Brazil, having reported BRL 7.7bn ($3.8bn) in revenues in 2012, and is one of the main subsidiaries of the Andrade Gutierrez group.