Centrais Elétricas Brasileiras SA — Eletrobrás

  • 25 Nov 2005
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Rating: BB-
Amount: $300m
Maturity: 30 November 2015
Issue/re-offer price: 99.146
Coupon: 7.75%
Spread at re-offer: 341bp over the 4.5% November 2015 UST
Launch date: Monday 21 November
Payment date: 30 November
Sole mgr: Dresdner Kleinwort Wasserstein

Bookrunner's comment:

Eletrobrás is an extremely rare and infrequent borrower, having not done anything in the public bond markets since their last deal in 2000. As a Brazilian state-owned utility with high scarcity value, it sparked high investor interest across the globe.

They are closely linked to the sovereign, carry the sovereign ceiling rating and were put on positive outlook by S&P at the same time as Brazil.

We had a two team roadshow last week, with the European team going to Switzerland, Austria, Germany and London and the US team going to the west coast, the mid-west, Boston and New York.

They received a positive response from both sides of the Atlantic and we were able to price a $300m 10 year issue with a coupon of 7.75% at 99.146 to yield 7.875%. That was at the tight end of our 7.875%-8% guidance, $300m was the maximum amount they could issue.

The book was over $775m and we had 127 accounts. Geographic distribution was: US 36%, UK 20%, Latin America 11%, Switzerland 9%, Iberia 8%, France 5%, Germany 4%, Asia 4% and others 3%.

In terms of investor type: dedicated funds were 57%, banks 21%, retail/private banking 12%, insurance companies and pension funds 7% and others 3%.

Fundamentally, accounts remain positive on Brazil, despite the frequent political noise and headline risk. Many investors are at their sovereign limits and thus used Eletrobrás as a sovereign proxy.

In secondary, the deal has traded well and seen good two-way flow. Priced at 99.146, when we freed it to trade, it traded up to and closed at 99.50 or 6bp tighter in yield at 7.82%.

The strong out-performance continued into Tuesday, where the bond closed at 99.35 despite much of the Brazilian sovereign curve being down as much as 0.75 of a point at one stage.

  • 25 Nov 2005

All International Bonds

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 JPMorgan 92.59 388 8.96%
2 Citi 85.30 278 8.25%
3 BofA Securities 63.15 265 6.11%
4 Barclays 58.01 223 5.61%
5 Deutsche Bank 55.74 184 5.39%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 BNP Paribas 60.87 123 14.06%
2 Credit Agricole CIB 28.59 93 6.60%
3 Santander 25.41 90 5.87%
4 JPMorgan 23.88 61 5.52%
5 UniCredit 21.51 103 4.97%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 Goldman Sachs 2.07 11 10.42%
2 BofA Securities 1.40 6 7.01%
3 Citi 1.37 7 6.87%
4 Morgan Stanley 1.36 6 6.85%
5 JPMorgan 1.31 7 6.59%