GNB Sudameris Talks Yield

Colombia’s Banco GNB Sudameris is heard indicating a mid-4.0% yield for a new 2018 senior unsecured bond of up to $300m, according to people following the transaction. Pricing is expected as soon as today, following the end of a three-continent roadshow Wednesday. Pricing references include Davivienda’s $500m 2022 Tier 2 bond, seen at a G-spread level of 353bp, and GNB’s own 2022 Tier 2, at 428bp. A yield of 4.5% for the new bond would indicate a spread of about UST+380bp, based on a 5-year UST yield of 0.70% Wednesday. Bank of America Merrill Lynch is sole lead. The ninth-largest private bank in Colombia by assets is raising funds for general corporate purposes, though analysts say it may pay off expensive debt in the local market, bilateral debt and possibly use funds to fund the HSBC acquisitions in LatAm. GNB, which agreed to buy HSBC’s operations in Colombia, Uruguay, Peru and Paraguay last year, made its DCM debut in July 2012, selling $250m of the 2022s.