The largest bank in terms of assets in Latin America, Banco do Brasil, would seek USD1 bilion obtained through a syndicated loan in order to diversify its funding sources. This was according to people with direct knowledge of the transaction.
The said bridge loan is being put together by Standard Chartered Plc, JP Morgan Chase & Co., HSBC Holdings Plc., Citigroup Inc., and BNP Paribas SA. according to the sources, who sought anonymity as the transaction has not yet been made public. The sources added that the syndication process had just started.
The loan would be broken into two tranches, with one three year maturity and pays a value of 135 basis points over London Interbank Offered Rate. The other has a four year maturity with a spread of 150 basis points. One basis point is equal to 0.01 percentage point.
Officials at Banco do Brasil declined to provide a comment on the transaction, as it was company policy for the Brasilia based financial institution. Spokespersons for Citigroup and JP Morgan, who are based out of New York, HSBC and Standard Chartered based out of London and BNP Paribas based out Paris either did not make any comment or respond to messages.
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