Banco BMG SA, the Brazilian lender that collects payments via payroll deductions, is considering selling bonds overseas.
Sales this year by Brazilian companies such as Banco Bradesco SA, Petroleo Brasileiro SA and Banco Santander Brasil SA have shown “positive” signs of investor demand, Ricardo Gelbaum, executive financial director for Belo Horizonte-based BMG, said in a telephone interview.
“We are looking for the opportunity,” he said. “We know that institutional and retail investors have a lot of cash.”
Gelbaum said the bank may look to sell international debt after releasing financial statements in two to three weeks. The bank last sold debt overseas in a benchmark offering in April 2011, issuing $300 million of securities, according to data compiled by Bloomberg.
Yields on the bonds due in 2018 have tumbled 143 basis points, or 1.43 percentage point, this year to 10.15 percent.
BMG has hired Banco Bradesco SA to manage a 1 billion reais ($580 million) program to sell local, longer-term debt known as letras financeiras in public offerings, Gelbaum said. BMG is still monitoring market conditions to determine the best timing for that sale, Gelbaum said.