Brazil Meatpacker JBS Plans Overseas Bond Issue - Bankers
01/24/2013| 08:23am US/Eastern
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--Company to hold roadshow for investors Friday and Monday
--Volume and maturity of bond issue still to be determined
--JBS bonds come amid growing appetite for Brazilian issues
By Rogerio Jelmayer
SAO PAULO--JBS SA (JBSAY, JBSS3.BR), the world's biggest beef producer by revenue, is planning to take advantage of growing international investor demand for Brazilian paper to go ahead with plans to issue overseas bonds as early as next week, according to two bankers close to the operation.
The company has hired Bradesco BBI, BB Securities, Deutsche Bank, JP Morgan and Banco Santander to coordinate the operation, said both bankers.
JBS officials weren't immediately available for comment.
The company will hold a roadshow for potential investors on Friday in Los Angeles and Boston and on Monday in New York and London, said one of the bankers.
The company hasn't decided on the amount to be raised from the operation nor the maturity date. Details of the issue will be determined after the road show, said the same person.
The JBS bonds come amid growing demand for Brazilian issues, as global benchmark interest rates remain at historically low levels.
On Thursday morning, Brazil's government-run Banco do Brasil S.A. (BDORY, BBAS3.BR) unveiled a plan to raise at least $500 million from a overseas issue of perpetual bonds, according to a banker close to the transaction.
"The demand for Banco do Brasil bonds is high and the amount may increase. The issue may be priced later Thursday," said a person involved in the deal.
Earlier this month, four Brazilian companies, meatpackers Minerva SA S.A (MRVSY, BEEF3.BR) and Marfrig Alimentos SA (MRRTY, MRFG3.BR), sugar-and-ethanol producer Tonon Bioenergia SA, and investment bank Banco BTG Pactual SA (>> Grupo BTG Pactual), witnessed strong demand for their bond sales, raising a total of $2.75 billion from their issues.
The strong lineup of bond issues so far this year continues a trend seen in 2012.
Last year, Brazilian companies and banks sold a record $50.5 billion in bonds, outpacing the previous record of $40.37 billion set in 2010, according to the Brazilian Association of Financial and Capital Market Institutions, or Anbima.
Write to Rogerio Jelmayer at rogerio.jelmayer@dowjones.com
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