Apr 14, 2014

• The average cost of the operation, 4.48% p.a., was the lowest ever paid by the Bank in dollars. Demand was higher than the value offered to the market

The Brazilian Development Bank (BNDES) successfully raised US$ 1.5 billion in bonds on the international market, issued in two series: a new bond for US$ 1 billion, maturing in 2019, and a reopening – increase in volume of an existing bond –, valued at US$ 500 million and maturing in 2023.
 
The average cost of the operation, 4.48% p.a., was the lowest the Bank has ever paid in dollars. The demand was much higher than the value offered to the market. More than 200 investors participated in the bookbuilding process, which surpassed US$ 6 billion in orders.
 
The operation has resulted in a return rate of 4.045% per year to the investor due to mature in 2019, and 5.322% per year with maturity in 2023, representing premiums of 237.5 and 262.5 base-points over the United States Treasury bonds.
 
Coordinated by Banco do Brasil, Citigroup, HSBC and Mitsubishi UFJ, the operation has made it possible to broaden the offer of bonds to buyers with varied investment profiles and from different geographic regions (United States, Europe, Asia and Latin America), expanding the BNDES’ investors.
 
This is the second issuance of bonds carried out by BNDES abroad in 2014, after fundraising held in January valued at EUR 650 million. It is also the first time that the BNDES has reopened its bonds. The operation allowed the Bank to add a new interest rate reference to its external curve, besides providing greater liquidity to its bond slated to mature in 2023.
 
The success of this new issuance consolidates the international presence of the BNDES, which, in the last eight months, has raised more than US$ 5.5 billion abroad (two issuances in dollars totaling US$ 4 billion, an operation in EUR 650 million, and two loans with Japanese banks valued at US$ 800 million).