Brazilian banks are taking shelter from the cross-border
storm by privately placing bonds backed by future foreign
payment receivables, or DPRs. Bankers and lawyers familiar with
the structure say other large Brazilian financial institutions
are waiting in the wings to bring similar transactions.
In the first week of March, Bradesco placed $500 million in
2014 notes at Libor plus 60 basis points via Bank of Tokyo
Mitsubishi. Days earlier, Banco do Brasil offered $250 million
in 2014 notes at 55 basis points over Libor in a transaction
managed by BNP Paribas. Brazilian banks are no strangers to
this type of transaction when the markets are down. Bradesco
placed similar $400 million and $500 million transactions in
August and November, respectively. For Banco do Brasil,
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