Banco do Brasil looks to Asia for $1 billion loan, sources say
By Guillermo Parra-Bernal
NEW YORK (Reuters) - State-controlled Banco do Brasil SA BBAS3.SA, Latin America's largest bank by assets, is in talks with a pool of lenders to raise at least $1 billion in a syndicated loan transaction, two sources with knowledge of the deal said on Wednesday.
Banco do Brasil is seeking to attract Asian investors to the deal, said one of the sources, who declined to be identified since the transaction is in the works. A second source said the loan would have two portions of three and four years, respectively.
The first source said that if market conditions turn out favorable, the amount raised could go "north of the $1 billion mark." None of the sources detailed the targeted cost of borrowing for both tranches.
The second source added that the Asia-based units of JPMorgan Chase & Co (JPM.N: Quote), NP Paribas SA (BNPP.PA: Quote), HSBC Holdings Plc (HSBA.L: Quote) and Standard Chartered Plc (STAN.L: Quote) were among the banks offered a chance to participate in the deal. Banco do Brasil declined to comment on the loan plans.
Many Brazilian companies are actively marketing fundraising deals in international debt markets before the end of the year, with state-controlled oil producer Petróleo Brasileiro SA (PETR4.SA: Quote) and mining giant Vale SA (VALE5.SA: Quote) considering the sale of global bonds within weeks.
Vale, Petrobras and Banco do Brasil could obtain fresh funds for investments and other corporate purposes earlier than usual to mitigate fundraising risk ahead of the presidential election in Brazil next October and the U.S. Federal Reserve's expected tapering of years of monetary stimulus.
(Reporting by Guillermo Parra-Bernal; Editing by Steve Orlofsky)
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