NEW YORK, July 23 (IFR) - The Federative Republic of Brazil is set to raise at least USD1bn through a new 2045 bond to be issued in conjunction with a buy-back of outstanding notes, according to one of the lead managers.
The sovereign, rated Baa2/BBB-/BBB, has launched the transaction at a final spread of 187.5bp over US Treasuries, after demand approached USD4bn.
Final terms came within the price guidance range of 190bp (plus or minus 5bp) over US Treasuries and tight to initial price thoughts of 200bp over.
Proceeds from the sale will be used to buy back as many as eight of the country's outstanding notes with maturities ranging from 2024 to 2041.
The sovereign has the option to increase the size of the new issue by USD50m during Asian hours.
The SEC-registered note will be priced later today, with Bank of America Merrill Lynch, Deutsche Bank and Itau BBA acting as lead managers.
Reporting by Davide Scigliuzzo; Editing by Paul Kilby