Banco Votorantim eurobond issue raises US$75mn

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Monday, September 9, 2002

Brazil's Banco Votorantim secured US$75mn in short-term maturity eurobond sales on foreign markets last Friday, a Votorantim spokesperson confirmed to BNamericas.

Demand was higher than expected, causing the bank to up the amount offered from US$50mn to US$75mn, though demand existed for US$85mn, she said. The bonds expire on December 12.

The bonds reach maturity before Brazil's new President assumes his post, but political timing was not a factor in setting the term: It was simply to satisfy a patent demand for three-month loans, she said.

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The operation is the only eurobond issue to take place over the last three months, Banco Pactual debt emission & fixed-income analyst Pedro Baroni told BNamericas, adding that the local market has a "positive perception" of Banco Votorantim.

The high demand is a good sign for the Brazilian market, though the operation was small, Baroni added. Banco Votorantim's last eurobond operation raised US$175mn in December 2001.

Brazil's second largest bank in terms of assets Itau (NYSE: ITU) co-arranged the operation through its Grand Cayman Islands branch, liaising with a Bahamas-based Votorantim branch.

Sao Paulo-based Banco Votorantim was established formally in 1991. As of YE01 the bank had US$291mn in net equity, US$4.4bn in total assets, US$72.4mn in net profits, and 299 employees.

The bank has branches in Rio de Janeiro and Porto Alegre in addition to its only non-Brazil branch in the Bahamas.