Primary hosts ADB; Honduras, Metro de Santiago, Genneia, Aerodom, Egypt on deck; FOMC eyed

By Christine Van Dusen

Atlanta, Jan. 5 – Manila-based Asian Development Bank (ADB) priced notes and several issuers lined up roadshows on a Thursday that saw emerging markets investors considering the implications of the Federal Reserve’s latest minutes.

“Yesterday’s minutes from the FOMC meeting on Dec. 13 and 14 revealed a generally more hawkish view by the participants,” a London-based analyst said. “Almost all agreed that a more expansionary fiscal policy could spur growth and result in a faster pace in rate.”

But uncertainty remains, he said.

“It remains to be seen what fiscal policies will be implemented and how those might impact the economic outlook,” he said. “Markets decided to look past the minutes, with the dollar retreating further and yields on Treasuries starting lower into the day, for which the renminbi is partly seen as responsible. The Chinese currency was seen accelerating its gains against the dollar, driven in part by strong economic data.

“It remains an otherwise calm morning in terms of news flows in EM, but we are seeing Treasuries coming off the tights and a reversal of the early gains in the FX markets, with the Turkish lira underperforming once more,” he said.

Meanwhile, Honduras, Chile’s Empresa de Transporte de Pasajeros Metro SA (Metro de Santiago), Argentina’s Genneia SA, Dominican Republic’s Aeropuertos Dominicanos Siglo XXI SA (Aerodom) and Egypt advanced deals.

In its new deal, Manila-based ADB priced a $4 billion issue of notes due Jan. 10, 2020 and 2027, according to a company announcement

The $3 billion 1¾% notes due 2020 priced at 99.942 to yield Treasuries plus 28.05 basis points.

The $1 billion 2 5/8% notes due 2027 priced at 99.451 to yield Treasuries plus 23.75 bps.

ADB sees demand

JPMorgan, Citigroup, Goldman Sachs and Nomura International were the bookrunners for the ADB deal.

About 40% of the 3-year bonds were placed in Asia; 29% in Europe, the Middle East, and Africa; and 31% in the Americas, according to the lender.

By investor type, 72% of the bonds went to central banks and official institutions, 8% to banks and 20% to fund managers and other types of investors. For the 10-year bonds, 27% went to Asia; 20% to Europe, the Middle East and Africa; and 53% to the Americas.

About 47% of the bonds went to central banks and official institutions, 11% to banks and 42% to fund managers and other types of investors.

ADB plans to raise $25 billion to $30 billion from the capital markets in 2017, the company said.

Honduras sets roadshow

Honduras will set out on a roadshow on Friday for a $500 million issue of notes due in 2027, according to a market source and a report from S&P.

BofA Merrill Lynch and Citigroup are the bookrunners for the deal.

The proceeds from the issuance will be loaned to the National Electric Energy Co. for the repayment of account payables owed to suppliers and to repay other indebtedness, the agency said.

The roadshow will end on Jan. 11.

Roadshow for transportation firm

Chile’s Metro de Santiago will set out on Jan. 9 for a roadshow to market a possible issue of 30-year notes, a market source said.

The roadshow will be held in Los Angeles, London and New York before concluding on Jan. 17 in Boston.

Other details were not immediately available on Thursday.

The company is Chile’s state-owned mass transport firm, which manages Santiago’s rapid transit system.

Genneia marketing notes

Argentina’s Genneia is marketing a dollar-denominated issue of bonds, a market source said.

A roadshow for the Securities and Exchange Commission-registered deal – led by BofA Merrill Lynch, Itau and JPMorgan – is underway and will end on Jan. 11.

Genneia is a power company based in Buenos Aires.

Aerodom seeks issuance

Dominican Republic’s Aerodom will begin a roadshow on Jan. 9 for a dollar-denominated bond. a market source said.

JPMorgan and Scotiabank are the bookrunners for the deal.

The proceeds will be used to fund a tender offer.

The roadshow will end on Jan. 11.

Aerodom develops, operates and manages airports and is based in Santo Domingo, Dominican Republic.

Egypt could issue

Egypt is planning to print eurobonds by the end of this month, a market source said.

The sovereign was previously expected to issue notes before the end of 2016, but a deal never materialized.

Egypt is reportedly in talks with potential bookrunners for the new issue.

Other details were not immediately available on Thursday.

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