Delek & Avner brings $2 billion, five-tranche deal; buyers for Kipco; BRF, YPF plan issues

By Christine Van Dusen

Atlanta, May 8 - Israel's Delek & Avner - Yam Tethys Ltd., Mexico's Grupo Televisa SAB, and China's Rizhao Port (Hong Kong) Co. Ltd. printed new issues on a Thursday that saw investors seek out bonds from Kuwait Projects Co.

In other trading during the session, Abu Dhabi-based Mubadala Development Co. PJSC's recent issue of 3¼% notes due 2022 - priced at 98.53 to yield 3.462%, or Treasuries plus 120 basis points - was quoted at 1003/4.

BofA Merrill Lynch, Credit Agricole, Deutsche Bank, Goldman Sachs, HSBC and National Bank of Abu Dhabi were the bookrunners for the Rule 144A and Regulation S transaction.

"Aldar Properties' 2018s are, funnily enough, popular," a London-based trader said. "They're at 103.31 bid, 103.81 offered now."

The notes had been spotted Wednesday at 103 bid, 103¼ offered.

The recent issue of 4.97% notes due in 2019 from Dubai's Damac Real Estate Development Ltd. traded at 98.45 bid, 98¾ offered on Thursday after pricing at par, the London trader said.

Also on Thursday, price guidance was offered by Power Construction Corp. of China, Bank of China Ltd. and Montenegro. Brazil's BRF SA set a roadshow and Albaraka Turk Katilim Bankasi AS sought issuance. And Argentina's YPF SA is planning a bond issue of up to $500 million, or its equivalent in other currencies, according to a filing from the company.

The Securities and Exchange Commission-registered notes will be part of the company's $5 billion global medium term notes program.

Israeli corporate prints bonds

In its new deal, Israel's Delek & Avner priced a total of $2 billion notes due 2016, 2018, 2020, 2023 and 2025, a market source said.

The $400 million 2.803% notes due in 2016 priced at par to yield 2.803%, or mid-swaps plus 200 bps, following talk in the 237.5 bps area.

The $400 million 3.839% notes due in 2018 priced at par to yield 3.839%, or mid-swaps plus 225 bps, following talk in the 262.5 bps area.

The $400 million 4.435% notes due in 2020 priced at par to yield 4.435%, or mid-swaps plus 230 bps, following talk in the 275 bps area.

The $400 million 5.082% notes due in 2023 priced at par to yield 5.082%, or mid-swaps plus 245 bps, following talk in the 300 bps area.

And the $400 million 5.412% notes due in 2025 priced at par to yield 5.412%, or mid-swaps plus 255 bps, following talk in the 312.5 bps area.

The proceeds will be used to repay indebtedness and for general corporate purposes.

Citigroup, JPMorgan and HSBC were the bookrunners for the Rule 144A and Regulation S deal.

Televisa prices notes

Mexico's Grupo Televisa sold $1 billion 5% notes due May 13, 2045 at 96.534 to yield 5.227%, or Treasuries plus 180 bps, a market source said.

The notes were talked at a yield in the very low-200 bps area.

Credit Suisse, Deutsche Bank and HSBC were the bookrunners for the Securities and Exchange Commission-registered deal.

The proceeds will be used for general corporate purposes, according to a company filing.

Rizhao does deal

China's Rizhao Port (Hong Kong) sold RMB 850 million 4¼% notes due May 15, 2017 at par to yield 4¼%, a market source said.

ABC International and Barclays were the bookrunners for the Regulation S deal.

The proceeds will be used to establish an overseas platform for the company's logistics and training segment.

Power Construction sets talk

Power Construction Corp. of China set talk between 4.2% and 4¼% for its upcoming issue of renminbi-denominated and benchmark-sized notes due in three years, a market source said.

Standard Chartered Bank, Bank of Communications (Hong Kong branch) and HSBC are the bookrunners for the Regulation S deal, which is expected to price on Thursday.

The proceeds will be used for the financing of existing and new overseas investment projects, for working capital and for general corporate purposes.

Bank of China gives guidance

Bank of China gave guidance in the 3.7% area for its upcoming issue of renminbi-denominated and benchmark-sized notes due in three years, a market source said.

Bank of China, Credit Suisse, Deutsche Bank and ING are the bookrunners for the Regulation S bonds, which are part of the company's $10 billion notes program.

The proceeds will be used for general corporate purposes.

Montenegro sets talk

Montenegro set talk at a minimum of 5½% for its upcoming issue of euro-denominated notes due in five years, 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.

Pricing is expected to take place on May 13, following the May 12 expiration of the tender and exchange.

BRF plans roadshow

Brazil's BRF SA will set out on May 12 for a roadshow to market a possible issue of notes, a market source said.

BB Securities, BTG Pactual, Itau BBA, Morgan Stanley and Santander are arranging the marketing trip in the United States.

The notes are being offered concurrent with a tender offer for $220,718,000 of its outstanding 6 7/8% notes due 2017 issued by subsidiary Sadia Overseas Ltd. and the $629,282,000 of outstanding 7¼% senior notes due 2020 issued by subsidiary BFF International Ltd.

BRF is a food company based in Itajai, Brazil.

Sukuk for Albaraka Turk

Turkey's Albaraka Turk is looking to issue $500 million in Islamic bonds due in five years, a market source said.

BNP Paribas, Emirates NBD, Standard Chartered Bank and QInvest are the bookrunners for the Regulation S deal.

Albaraka Turk is a lender based in Istanbul.

Fibria issues bonds

On Wednesday, Brazil's Fibria Overseas Finance Ltd. sold $600 million 5¼% notes due May 12, 2024 at 99.302 to yield 5.341%, or Treasuries plus 275 basis points, a market source said.

The notes were talked at a spread in the 325 bps area.

Citigroup, Credit Agricole CIB, Deutsche Bank, Goldman Sachs and Banco Votorantim were the bookrunners for the Securities and Exchange Commission-registered deal.

The proceeds will be used to fund the 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.

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