July 17, 2014
Caixa Economica Federal (CEF) broke new ground on Wednesday, pricing the first Basel III tier two bond from Brazil. BB Securities, Bank of America-Merrill Lynch, Bradesco, BTG Pactual, Deutsche Bank and HSBC were heard to sell the 7.25% $500m 10 non-call five bond at par after taking some $2bn in orders. The yield came at the middle of initial price thoughts of low-to-mid 7%, and in line with guidance of 7.25% heard at launch. A mix of institutional and retail investors was heard to participate.
Caixa Economica Federal builds solid book for the first Basel III tier two bond sold in Brazil, but some say the bank paid a high price