CORPORATE LIABILITY MANAGEMENT: Odebrecht $550m/BRL500m tender and new issue

CORPORATE LIABILITY MANAGEMENT: Odebrecht $550m/BRL500m tender and new issue

Corporate & Sovereign Strategy

Brazilian construction firm Odebrecht spotted an opportunity to cut its funding costs in the second quarter — and leapt on it. Hindsight showed the operation could scarcely have been better timed. The triple-B rated borrower picked up on a fleeting moment of global investor demand for bonds denominated in Brazilian reais in early April. In a snappy execution led by BTG Pactual, Crédit Agricole, Deutsche Bank, Santander and Scotiabank, Odebrecht sold a $550 million 12-year bond, and a 500 million real five-year note. Both were three times subscribed, with the bulk bought by US investors, and asset managers. Odebrecht, reluctant to increase its debt, offered to repurchase older, higher c

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