Nov. 1 (Bloomberg) -- Banco do Brasil, Latin America’s largest bank by assets, is seeking $1 billion through a syndicated loan to diversify its funding sources, according to two people with direct knowledge of the matter.
The financing is being led by BNP Paribas SA, Citigroup Inc., HSBC Holdings Plc, Standard Chartered Plc and JPMorgan Chase & Co., the people said, asking not to be named because the deal isn’t public. The syndication process has just started, they said.
The loan will have two tranches, according to the people. One has a maturity of three years and pays a spread of 135 basis points over the London interbank offered rate. The other has a four-year maturity and a spread of 150 basis points. A basis point is 0.01 percentage point.
A Banco do Brasil official declined to comment on the loan, asking not to be named in keeping with the Brasilia-based company’s policy. Spokesmen for New York-based Citigroup and JPMorgan, London-based HSBC and Standard Chartered and Paris- based BNP Paribas said they couldn’t immediately comment or didn’t respond to messages.
--Editors: David Scheer, Dan Reichl