Banco Santander Brazil has raised $100 million on the U.S. private placement market through a diversified payment rights (DPR) deal, according to sources.

The transaction was launched with the same amount on the cover, for a seven-year final, 4.88-year average maturity, via National Australia Bank. The bond issue's spread was not available but U.S. private placement market participants said it priced north of the original price talk of 190 basis points above Treasurys.

This DPR issue, launched by Santander's Brazilian arm was rated 'A' by Fitch Ratings. This deal was secured by the wire transfer fees received by the institution.

There have been few DPR transactions over the last few years. Once a popular way to raise funding by financial institutions in non-investment grade countries, the number of DPRs dwindled during the financial crisis.

Brazil now has an investment grade rating but these deals gained prominence before its rating changed.

Santander's DPR has been the first out of Brazil since 2008, when Banco do Brasil and Unibanco did similar deals.

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