Fermaca, Chengtong Development do deals; Montenegro to market notes; Turkey stays strong

By Christine Van Dusen

Atlanta, May 1 - Mexico's Fermaca Enterprises S de RL de CV and China Chengtong Development Group Ltd. sold notes on a quiet Thursday for emerging markets assets, as most of Europe was out on a bank holiday.

Meanwhile, some good news emerged from Ukraine, a London-based analyst said.

"The [International Monetary Fund] has approved a $17 billion loan to Ukraine with an immediate disbursement of $3.2 billion to help the country deal with $9 billion of foreign currency debt payments this year," she said.

Against this backdrop, bonds from Turkey were "very strong," she said. "Credit default swaps are now through 200 basis points."

In trading from the Middle East, the recent issue of 4.97% notes due 2019 that Dubai's Damac Real Estate Development Ltd. priced at par was quoted in the 98¼ to 98¾ context on Thursday, a trader said.

Barclays, Citigroup and Deutsche Bank were the joint global coordinators. The three banks - along with Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital and National Bank of Abu Dhabi - were also joint lead managers for the Regulation S deal.

And Abu Dhabi National Energy Co. PJSC's (TAQA) new 3 7/8% notes due 2024 that priced at 99.369 traded Thursday at 99½ bid, 99.65 offered, the trader said.

The notes came to the market at mid-swaps plus 115 bps via BofA Merrill Lynch, Mitsubishi UFJ Securities, RBS, Societe Generale CIB and Standard Chartered Bank in a Rule 144A and Regulation S deal.

In deal-related news, Montenegro has planned a roadshow, and Brazil's Fibria Overseas Finance Ltd. is looking to issue notes.

Fermaca prints notes

In its new deal, Mexico's Fermaca priced $527 million 6 3/8% notes due March 30, 2018 at par to yield 6 3/8%, a market source said.

The notes were talked at a yield in the 7% area.

Citigroup and Deutsche Bank were the bookrunners for the Rule 144A and Regulation S deal.

Fermaca is an owner and operator of gas pipelines in the Mexican states of Queretaro and Chihuahua.

Chengtong sells bonds

Hong Kong-based conglomerate China Chengtong Development sold RMB 600 million 4% notes due May 9, 2017 at par to yield 4%, a market source said.

Pricing matched talk, set at 4%.

ABC International, Agricultural Bank of China (Hong Kong branch) and Agricultural Bank of China (Singapore branch) were the bookrunners for the Regulation S deal.

The proceeds will be used for refinancing of existing indebtedness, working capital and general corporate purposes.

Montenegro sets roadshow

Montenegro will set out on May 6 for a roadshow to market a euro-denominated issue of notes, a market source said.

Citigroup, Deutsche Bank and Erste Group are the bookrunners for the Rule 144A and Regulation S deal.

The notes are being offered in conjunction with an exchange and tender offer for Montenegro's existing 2015 and 2016 notes.

Fibria seeks issuance

Brazil's Fibria is looking to issue dollar-denominated notes in a Securities and Exchange Commission-registered deal, according to a company filing.

Citigroup, Credit Agricole CIB, Deutsche Bank, Goldman Sachs and Banco Votorantim are the bookrunners for the deal.

The proceeds will be used to fund a 2021 notes tender offer and for general corporate purposes.

The notes are guaranteed by Fibria Celulose SA, a Sao Paulo-based pulp and paper company.

TAQA oversubscribed

The final book for TAQA's new $750 million 3 7/8% notes due May 6, 2024 was $4.5 billion from 200 orders, a market source said.

The notes came to the market this week at 99.369 to yield mid-swaps plus 115 bps with BofA Merrill Lynch, Mitsubishi UFJ Securities, RBS, Societe Generale CIB and Standard Chartered Bank in a Rule 144A and Regulation S deal.

About 30% of the orders came from the United States, 27% from the Middle East, 15% from Europe, 13% from the United Kingdom, 11% from Asia and 4% from Switzerland.

Fund managers picked up 50%, banks 27%, insurers and pension funds 10%, central banks 9% and private banks 4%.

"The new TAQA has performed well, now up 0.2 points from re-offer," the analyst said.

MAF deal attracts orders

The new issue from Dubai's Majid Al Futtaim Holding LLC (MAF) - $500 million 4¾% notes due May 7, 2024 - attracted a final book totaling $2 billion from 135 accounts, a market source said.

The notes priced at 99.835 to yield 4.771%, or mid-swaps plus 195 bps.

About 40% of the orders came from the United Kingdom, 30% from the Middle East, 18% from Europe, 6% from Asia and 6% from the offshore United States.

Fund managers accounted for 64%, banks 26%, insurers and pension funds 5%, private banks 2% and sovereigns, supranationals and agencies 3%.

Barclays, Credit Agricole, Citigroup, Emirates NBD, HSBC and Standard Chartered Bank were the bookrunners for the deal.

"The new MAF deal is trading slightly above re-offer," the analyst said.

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