Roadshows for Malaysia Airports, Berau Coal; Ukraine, Russia remain in focus; Petrobras firm

By Christine Van Dusen

Atlanta, Aug. 20 – Malaysia Airports Holdings Bhd. and Berau Coal Energy Tbk set roadshows for upcoming deals on Wednesday as investors looked ahead to next week’s meeting of the leaders of Ukraine and Russia.

“The meeting’s official purpose is to discuss the free-trade deal signed by Ukraine in June, not yet ratified because of Russian objections, and probably also gas supply from Russia to Ukraine and the European Union,” according to a Commerzbank report. “The tenuous border situation is probably here to stay with us in coming years, but an interim agreement would still be viewed as a breakthrough and possible beginning of de-escalation by markets.”

So far this week, bonds from Ukraine have ticked higher, with the sovereign’s 2023s moving up 1.8 percentage points and the 2017s adding 0.8 percentage points, according to a report from Eavex Capital.

On the corporate side, Metinvest BV has seen its 2018s gain 1 percentage point to trade at 75 bid, 78 offered. And Ferrexpo plc’s 2016s have moved up 0.7 percentage points to 94 bid, 95½ offered.

Meanwhile, violence continued in Israel, where the ceasefire collapsed and Hamas said its leader’s wife and child were killed by an Israeli air strike.

“This is probably a sign that negotiations in Egypt were not going to lead to anything concrete,” Commerzbank said.

Also on Wednesday, South African bank bonds suffered after Standard Bank became the latest lender to see its ratings get downgraded, a trader said.

Standard Bank’s 2019 notes dipped to 115¾ in trading while FirstRand’s declined to 103 7/8, he said.

Lat-Am active, steady

Looking to Latin America, Wednesday’s fairly active session saw steady inquiries, a New York-based trader said.

Spreads remained firm for Petroleo Brasileiro SA (Petrobras) and the 2019 notes that Chile’s Masisa SA priced at par moved to 109¾ on Wednesday. On Tuesday, the notes traded at 109½.

In other news, market sources were whispering about a possible bond that Serbia could bring to the market this year in dollars or euros.

Roadshow for Malaysia Airports

Malaysia Airports Holdings will set out later this week on a roadshow to market a ringgit-denominated issue of Islamic bonds, a market source said.

Citigroup is the sole global coordinator. CIMB, HSBC and Maybank are the joint bookrunners.

Malaysia Airports Holdings is a Subang, Malaysia-based investment holding company that operates in five segments through its 25 subsidiaries, including duty-free and non-dutiable goods, airport services and hotel management.

Berau revives plans

Indonesia’s Berau Coal Energy has revived plans for a dollar-denominated issue of benchmark-sized notes due in five years, hosting a new roadshow that will start on Thursday, a market source said.

The original deal was talked at a yield in the 10½% area.

Barclays, Citigroup and Standard Chartered Bank were the bookrunners for the initial Rule 144A and Regulation S deal, which was shelved earlier this month.

The proceeds were to be used for the repayment and redemption of the company’s outstanding 2015 notes.

© 2015 Prospect News.
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