International law firm Hogan Lovells has advised Banco Votorantim S.A., a Brazilian financial institution that is jointly controlled by the Votorantim Group and Banco do Brasil, in its issuance of US$300 million of Basel III-compliant Tier 1 subordinated notes.

The structure of the offering is unique in that the notes are perpetual with a call option after five years and were issued with a coupon of 8.25%, which resets every five years based on a spread over 5-Year U.S. Treasury bonds.

This issue is the second issuance in the international capital markets by a Brazilian financial institution this year and is indicative of the recent reopening of the international capital markets to Brazilian issuers. The first such issuance was in October, when Hogan Lovells represented Banco do Brasil S.A. in its issuance of US$1 billion of senior notes.

The Hogan Lovells team was led by partners Evan Koster, who is based in New York, and Isabel Costa Carvalho in São Paulo. Other team members include counsel David Contreiras Tyler in New York, associate Rodrigo Paes de Barros in São Paulo and visiting international attorney Renato Villaca Di Dio in New York. Hogan Lovells regularly advises Banco Votorantim S.A. in connection with its medium-term note (MTN) program and represented the institution in connection with its cash tender offer for up to US$300 million of its subordinated notes in 2015.