Brazil's Unibanco Sells EU50 Mln of 2-Yr Bonds; Yields Fall
Sao Paulo, May 14 (Bloomberg) -- Uniao de Bancos Brasileiros
SA, Brazil's third-largest privately owned bank, sold 50 million
Euros ($53 million) in two-year bonds, the longest-term debt
offering by a Brazilian bank since the devaluation of the
nation's currency in January.
The sale was led by Chase Manhattan International Inc., with
a coupon of 7.75 percent. The bonds were priced at 99.75 to yield
7.89 percent, a spread of 563 basis points over comparable U.S.
Treasuries, the bank said.
Unibanco said the sale also marks its return to the European
market and benefited from demand from Italian retail investors
and European private banks.
The yield on the debt is significantly lower than a $100
million, one-year debt offering by Unibanco last month, with a
yield of 10.75 percent. The debt is trading today at 10.31
percent.
Six interest rate cuts, stable inflation and currency have
boosted investor confidence in Brazil, driving down borrowing
costs.
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