January 27, 2025 16:55 GMT
EM LATAM CREDIT: NEW DEAL: Interbank $Benchmark Sub-Debt 10.25NC5 High 6%s
EM LATAM CREDIT
Banco Internacional del Peru (BINTPE; Baa1neg/BBB-/BBB)
Subordinated Debt Ratings: (BINTPE; Baa3/BB+/BB+)
IPTs: High 6%s
FV: 6.625% Area
- Top 5 Peruvian bank issuing sub-debt similar structure to last year’s 10NC5yr issue now trading at 5.85% yield to call (YTC). Peru’s largest bank by assets, Banco de Credito del Peru (BCP) has subordinated debt rated Baa3/BB+ which it issued as a 10.5NC5.5 back in September 2024 at T+224 now trading at 6.28% YTC.
- Another of the major Peruvian banks, Banco BBVA Peru (BCOCPE) issued a 10NC5 last year which is now trading 5.66% YTC.
- BINTPE should trade at a discount to BCP given its small size, lesser loan portfolio diversification and lower market share in the Peruvian bank market.
BINTPE 7.625% 2034, $106.39, -.06
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