UPDATE 1-Braskem, Fibria to sell global bonds, sources say

* Braskem, Fibria to sell 10-year debt: sources

* Braskem to sell bonds first time since May 2008
(Recasts to add size and scope on last sale, details on Fibria
offering; adds source)

By Guillermo Parra-Bernal

SAO PAULO, April 22 (BestGrowthStock) – Braskem (BRKM5.SA: )(BAK.N: ),
Latin America’s largest petrochemical company, plans to sell at
least $500 million in 10-year dollar-denominated bonds, taking
advantage of a rally in emerging market debt.

The notes will be offered by Braskem Finance Ltd, a Cayman
Islands-based subsidiary of Braskem, two people with direct
knowledge of the deal told Reuters on Thursday. The sale could
be concluded by as early as April 28, said the sources, who
declined to be cited by name because terms of the transaction
are still under discussion.

Brazilian banks, beef processors and industrial companies
have sold $11.03 billion in bonds this year to fund record
investments and reduce borrowing costs, as Brazil-focused
investors hunt for greater returns on a more diverse risk
base.

The last time the Sao Paulo-based company sold bonds in
international markets was in May 2008, when it raised $500
million of bonds due in June 2018 at a yield of 7.25 percent,
according to Thomson Reuters data. Company executives will meet
investors in New York, London, Boston and the U.S. West Coast
between April 26 and April 28, the sources added.

Braskem hired the investment banking units of Banco do
Brasil (BBAS3.SA: ), Banco Bradesco (BBDC4.SA: ), HSBC Plc (HSBA.L: )
and Banco Santander (SAN.MC: ) to arrange the sale, the sources
added.

As of the end of last year, Braskem, controlled by giant
construction firm Odebrecht, had $5.6 billion of debt. The
company is rated Ba1 by Moody’s Investors Services and BB plus
by Standard & Poor’s, both speculative grades.

Another source said Fibria (FIBR3.SA: ), the world’s largest
maker of eucalyptus pulp, also plans to sell at least $500
million of 10-year debt for debt refinancing and general
corporate purposes.

Fibria, the by-product of a merger between paper and pulp
processors VCP and Aracruz last year, hired Bank of America
Merrill Lynch (BAC.N: ) and Santander to manage the offering.
Fibria sold $1 billion of 2019 bonds last October.

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(Additional reporting by Elzio Barreto in Sao Paulo)

UPDATE 1-Braskem, Fibria to sell global bonds, sources say