Banco do Brasil sees high demand for hybrid

Banco do Brasil sees high demand for hybrid

Bonds

Banco do Brasil finalized its third sale of a Basel III hybrid on Wednesday, pricing a $2.5bn 9% bond on a book that was said to be nearly five-times subscribed. Initial price thoughts on the perpetual non-call 10-year note began at mid-9% area, but lead managers later narrowed the guidance to 9% to 9.25%. One source said that Banco do Brasil probably paid about 15bp to 20bp new issue premium considering the curve extension compared to the borrower’s tier-one hybrids sold in 2012 and 2013, which

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