Emerging markets are idle; Russia, Russian Railways trade up; Kazakhstan, Poland eye deals

By Aleesia Forni

Columbus, Ohio, March 30 - It was a "very quiet" Friday in the emerging markets space, according to a London-based source.

Russia's "very cheap" bond maturing in 2042 jumped one point on the day, while the "rich" new Russian Railways bond maturing in 2022 jumped ½ point during London's session.

To recap, Russia priced $2 billion of 3¼% five-year notes at Treasuries plus 230 bps, $2 billion of 4½% 10-year notes at Treasuries plus 240 bps and $3 billion 5 5/8% 30-year bonds at Treasuries plus 250 bps.

BNP Paribas, Citigroup, Deutsche Bank, Troika Dialog and VTB Capital were the bookrunners.

Additionally, Russian Railways priced a $1 billion 5.7% bond at Treasuries plus 352.9 basis points.

The deal priced at par to yield 5.7%, and JPMorgan, RBS and VTB Capital were the bookrunners.

Russian Railways is based in Moscow.

The performance of these deals may give hope to other borrowers in that region, particularly Russia's leading steel producer, Evraz Group SA, according to a market source.

Satelites Mexicanos prices

In the primary market, Mexico's Satelites Mexicanos, SA de CV priced a $35 million add-on to its 9½% senior secured notes due May 15, 2017 (B3/B) at 102 on Friday, according to an informed source.

The reoffer price, which came at the rich end of the 101.5 to 102 price talk, rendered an 8.902% yield to worst and an 8.998% yield to maturity.

Jefferies & Co. ran the books for the quick-to-market sale.

Proceeds, along with internal cash, will be used to fund a new satellite.

The original $325 million of notes priced at par in May 2011.

Satmex is a Mexico City-based satellite service provider.

Kazakhstan, Poland eye deals

Also in the primary market, Development Bank of Kazakhstan plans to offer up to $500 million of short-term Islamic bonds.

The Astana, Kazakhstan-based bank expects the initial issue volume will make up $200 million to $300 million for at least five years.

Poland is also eying a future deal, considering an issue of structured bonds through a private placement.

For the second quarter of 2012, Poland anticipates €600 million of loans from financial institutions.

According to the country's report, the level of foreign financing will depend on international market conditions.

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