By Rogerio Jelmayer
SÃO PAULO--Brazil's second-largest bank by assets, Itaú Unibanco
Holding SA, is planning to issue a three-year overseas bond
denominated in dollars, according to a person close to the
operation.
The bank will issue the bond via its Grand Cayman branch.
The bank, which hasn't yet decided the size of the issue, will
use the proceeds for general purposes, according to the person, who
declined to be named.
Bank of America Merrill Lynch, Citigroup Inc., Itaú BBA, Banco
Santander SA and Banco do Brasil SA unit BB Securities are
coordinating the issue, the person said. An Itaú spokesman declined
to comment.
Earlier this year, Brazilian cement and concrete producer
Votorantim Cimentos SA became the first Brazilian player to tap the
international debt market this year, after local companies shied
away from capital markets amid domestic political turmoil.
Votorantim Cimentos, which is part of industrial conglomerate
Grupo Votorantim, raised EUR500 million ($571 million) in a bond
denominated in that currency. The bonds, due in 2022, carry an
annual yield of 3.5%.
The combination of poor economic conditions in Brazil and the
continuing corruption investigation of contracts between
state-controlled oil company Petróleo Brasileiro SA, or Petrobras,
and some construction companies has soured business sentiment in
the country.
After expanding just 0.1% last year, Brazil's economy is likely
to contract more than 1% in 2015, according to economists.
The volume raised by Brazilian companies in international debt
markets totaled $45.48 billion in 2014--up 19% from 2013--with more
than 70% of those issues coming in the first half of the year,
according to the Association of Financial and Capital Market
Institutions, or Anbima.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
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