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Taking advantage of falling yields, Brazilian borrowers are returning Co international debt markets. BNDES, the state-owned development bank, sold S 1 billion in 10-year bonds in June, yielding 6. 546%. The deal, managed by HSBC and Goldman Sachs, allows the bank to increase its loan portfolio. BNDES last came to market with Sl billion in 10-year notes in May 2008, with a 6.4% coupon, ending a seven-year market hiatus. BNDES's international bonds are rated BBB- by S&P and Baa3 by Moody's.

Lesser-quality issuers also returned to the market. Banco Cruzeiro do Sul, focused on payroll-deductible consumer loans, sold $60 million in two-year dollar-denominated notes in June. The notes offer a 9% coupon and were priced to yield 9.75%.The bank expects to grow its loan portfolio by 70% yearon-year in 2009 and has a lion -performing loan ratio of 0.79%, compared with the financial system's 5.2%. It last sold $1 10 million of two-year notes in April 2008, yielding 7.37%.

Brazil's CBD is acquiring a controlling stake in Ponto Frio, a major appliance chain, regaining its post as the country's largest retailer. …