When Cosan looked at the bond market to take out a pricey
acquisition financing in early 2013, it wanted to raise the
money in local currency. But investors were wary of
fluctuations in the Brazilian real’s price against
CORPORATE HIGH-YIELD BOND: Cosan $500m/BRL500m dual tranche bond
The Brazilian energy and infrastructure firm reopened the global-real market, and says local currency funding is set to become even more important this year
So the borrower started cautiously, with lead managers
Bradesco, BTG Pactual, Itaú and Morgan Stanley only
announcing a 10-year non-call five dollar-denominated deal.
When demand started overwhelming the $500 million deal, they
added a five-year global 500 million real ($212 million)
In the end, investors placed orders of around $9 billion
equivalent for the dual-tranche deal. Enthusiasm for the bond
stayed strong afterwards, too,...
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