Brazil’s national development bank BNDES is likely to tap green bond investors next week after wrapping up meetings in Europe and the US, investors told LatinFinance.
The bank also needed to revise specific documentation pertaining to the trade, which may have prevented it from printing new paper this week, a debt capital markets source monitoring the trade, but not directly involved said.
Nonetheless, BNDES is expected to garner heavy interest from a wide pool of investors seeking new or less-frequent credits. A dearth of LatAm green bonds along with BNDES’ government support will help the bank obtain a tighter yield, one buy side source said.
After a number of new issues at the back end of this week, BNDES is now in a position to get full investor attention next week, which should enable leads to fill the order books with ease, the investor said.
Bank of America Merrill Lynch, Credit Agricole and JPMorgan are joint bookrunners on the transaction.
The size and tenor of the potential trade is yet to be determined. Proceeds will fund eligible green projects, DCM bankers previously told LatinFinance.
The potential bond sale will end a three-year hiatus in the cross-border bond market for BNDES. The development bank in April 2014 raised $1bn in 4.054% 2019s and added $500m to its 5.322% 2023s.