Emerging markets quiet; CLP Power prices; Digicel plans notes; Banco Bradesco bonds eyed

By Christine Van Dusen

Atlanta, March 15 - Emerging markets were somewhat slow Monday as issuers and investors waited to see what would come out of this week's meeting of E.U. finance ministers, convened to discuss a financial aid package for cash-strapped Greece that is likely to impact spreads for the sovereign's bonds and determine whether Greece goes ahead with a new issue.

"That's the bigger picture," a London-based market source said. "We don't necessarily expect to hear anything unusual - it's their job to say a lot but say nothing - but that is the focus, to see what the conclusion is and what the repercussions will be."

Investors also are waiting on the results of the Federal Reserve's rate-setting meeting on Tuesday and for other upcoming U.S. economic data. The data so far this week have been mixed, with industrial production meeting expectations, credit card delinquency rates lowering, manufacturing improving and sales conditions in the housing market declining.

"We'll be watching the markets," the London-based source said.

Otherwise, "it's a typical Monday: extremely quiet," the source said as Monday's European close neared. "Things are largely, price-wise and spread-wise, where we were on Friday. I expect it to pick up later in the week."

One issuer that did make some noise on Monday was CLP Power Hong Kong Financing Ltd., which priced $500 million 4¾% senior unsecured bonds due 2020 at Treasuries plus 115 basis points to yield 4.8677%, according to statement from the Hong Kong-based power company for the Asia-Pacific region.

Also on Monday, Jamaica's Digicel Group Ltd. planned a $775 million issue of eight-year notes that, according to market sources, could price as soon as Tuesday. And Brazil's Banco Bradesco is expected to sell a benchmark-sized issue of notes due 2015 that is being whispered at Treasuries plus 175 bps to 187 bps, the source said.

Next up could be Vale SA, the Rio de Janeiro-based metals and mining company that will end a roadshow on March 17 for a planned euro-denominated offering of global bonds via BNP Paribas, Credit Agricole CIB, HSBC and Santander.

Also on the horizon is Brazil-based beef producer Independencia Alimentos SA's expected $150 million senior secured notes due 2015 and a possible benchmark-sized offering of notes due 2020 from Hungary.

Market sources also are whispering about Kazakhstan, which they say may try to put together a sukuk offering this year.

CLP Power prices

CLP Power Hong Kong Financing priced $500 million 4¾% senior unsecured bonds due 2020 at Treasuries plus 115 bps to yield 4.8677%, according to a company statement.

Barclays Capital, Citi, HSBC and Standard Chartered were the bookrunners for the Regulation S-only deal, which the company says was nearly nine times oversubscribed with $4.5 billion in orders from global investors.

Proceeds will be used for general corporate purposes.

Digicel could price Tuesday

Digicel Group will host Tuesday investor calls at 6:30 a.m. ET and 11 a.m. ET for its $775 million offering of eight-year senior notes, according to an informed source.

Management will present at 7:30 a.m. ET.

The Rule 144A for life and Regulation S formatted deal is expected to price Tuesday afternoon, New York time.

Credit Suisse, Citigroup, JPMorgan and Deutsche Bank Securities are joint bookrunners.

The notes come with four years of call protection.

Proceeds will be used to fund the acquisition of a 100% stake in Digicel Pacific Ltd.

Digicel Group is a wireless communications company based in Kingston, Jamaica.

Banco Bredesco plans notes

Brazil's Banco Bradesco is expected to bring to market a benchmark-sized issue of notes due 2015 with a yield whispered at Treasuries plus 175 bps to 187 bps, according to a market source.

The bookrunners for the deal are Goldman Sachs, Banco Bradesco and Banco Votorantim.

Bradesco is a bank based in Osasco, Brazil.

Paul A. Harris contributed to this report

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