Kuwait makes $8 billion debut; Evraz sells notes; investors await Fed meeting; Borets ahead

By Christine Van Dusen

Atlanta, March 13 – Oil-reliant Kuwait on Monday priced its first international bond – a doozy, at $8 billion – on an otherwise hesitant Monday as emerging markets investors awaited the two-day meeting of the Federal Reserve.

“Investors will focus on the Fed meeting this week,” according to a report from Schildershoven Finance BV. “The oil market dynamics may also affect the eurobonds’ prices.”

Also on Monday, Russia-focused Evraz Group SA printed new notes while market-watchers kept an eye on Brazil-based Companhia Energetica de Minas Gerais (Cemig).

Cemig is planning to sell majority stakes in power generation and transmission company Cemig GT and power distribution firm Cemig D.

“Cemig evaluates the potential proceeds for the deals at around R$4 billion,” according to a report from Schildershoven Finance BV. “If the company inks the deal with the desired price range, it potentially shrinks the debt load by 25%, improving the liquidity position along the way.”

In its debut deal, Kuwait priced an $8 billion issue of notes in tranches due 2022 and 2027, a syndicate source said.

In other deal-related news, the United Arab Emirates’ Borets Finance DAC is planning to issue new five-year notes to fund a tender offer, according to a company announcement.

Polish telecom Play Topco SA plans to price a €500 million offering of 5˝-year PIK toggle holdco notes on Tuesday, according to a market source.

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