Jan 22, 2014

• Cost of the operation is the smallest in euros ever paid by the Bank
• Demand exceeds € 1.8 billion

The Brazilian Development Bank (BNDES) successfully raised € 650 million in bonds on the international market, with maturity slated for January 2019.

The operation resulted in a rate of return to the investor of 3.783% per year, which represents a premium of 260 basis points over Mid-Swaps (the main reference for the euro market).

The final cost of the operation was the lowest ever paid by the Bank on a euro issuance and was approximately 30 basis points cheaper than if the BNDES had run a new dollar issuance for the same term.

Demand was higher than the amount offered to the market and more than 190 investors participated in the pricing of securities (book building), which exceeded € 1.8 billion in orders.

Such high demand for the bonds means a wide variety of buyers from different countries, especially European, with a profile of long-term investment.

The operation was coordinated by Deutsche Bank, JP Morgan and Santander as well as the participation of Banco do Brasil and Mitsubishi UFJ Securities, which allowed coverage of different geographical regions (Europe, the US, Asia and Latin America) broadening the BNDES' investor base.

Priced on January 13, Bank executives preceded the operation with a brief road show, holding meetings with international investors in London, Paris, Amsterdam, Frankfurt and Munich.

Fundraising marked the BNDES’ return to the euro market after an absence of more than three years, since the last title of the Bank in this currency was launched in September 2010.