Second Tier Success

Second Tier Success


In November, Banco Bradesco, Brazil’s largest private sector bank, placed the largest subordinated debt issue ever sold by an emerging market issuer. Merrill Lynch lead-managed the $500 million, 10-year issue that had a 8.75% coupon. The issue, which carried political risk insurance from Sovereign Risk Insurance, was Bradesco’s cheapest tier-two capital deal yet.  The deal was a hit with investors. It clocked up $800 million in orders before Merrill Lynch closed the book. The bond, launched at a spread of 449.7 basis points over US Treasurys and priced at 99.183%, was soon trading at 102.627%. José Guilherme Lembi de Faria, executive director at Bradesco, sa

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