Investors placed over $4.6 billion worth of bids for a potential
bond offering by RioPrevidência, the public pension fund of
Brazil's state of Rio de Janeiro, which has plans to sell at
least $1 billion of 10-year senior secured bonds on Thursday, a
source with direct knowledge of the deal told Reuters.
RioPrevidência and banks leading the transaction will unveil
formal pricing guidance for the issue in coming hours, said the
source, who declined to be identified because the deal is in the
RioPrevidência is offering as collateral for the fixed-rate
bonds its rights to present and future oil and gas royalties and
special participations, said the source. The deal is expected to
be rated "BBB minus" by Standard and Poor's and "BBB" by Fitch
Ratings, the source said.
The pension fund sounded out investors on a preliminary
basis, offering to pay yields in the mid-6 percent range, the
source added. The investment banking units of Banco do Brasil
SA's BB Securities and France's BNP Paribas SA
are managing the transaction.