Emerging Markets: Prosus, Country Garden bring $1 billion deals; finance firms price notes

By Rebecca Melvin

New York, July 31 – The emerging markets saw a good number of deals price during the last week of July including Prosus NV’s $1 billion of 30-year notes that priced at par with a 4.027% coupon.

Prosus is the international internet assets division of South Africa’s Naspers Ltd.

In addition there were a good number of international deals for China issuers, including a $1 billion deal for Country Garden Holdings Co. Ltd. But most sovereigns were quiet, and especially Latin America’s sovereign and corporate issuers as debt restructuring efforts for the likes of Ecuador and Argentina unfold.

Country Garden priced a combined $1 billion of senior notes in tranches due 2026 and 2030 in a Regulation S transaction, according to a news release from the issuer.

The dual tranche deal included $500 million of 4.2% senior notes due 2026 priced at par and $500 million of 4.8% senior notes due 2030 sold at par.

Morgan Stanley & Co. International plc, J.P. Morgan Securities plc, Goldman Sachs (Asia) LLC, UBS AG Hong Kong Branch, Standard Chartered Bank and CLSA Ltd. are joint global coordinators, joint lead managers and joint bookrunners.

The 2026 notes are callable beginning Feb. 6, 2024 at 102.1 and on Feb. 6, 2024 and thereafter at 101.05.

The 2030 notes are callable on Aug. 6, 2025 at 102.4, on Aug. 6, 2026 at 101.2, on Aug. 6, 2027 at 100.6 and on Aug. 6, 2028 and thereafter at par.

Country Garden intends to use the net proceeds from the notes for refinancing existing medium- to long-term offshore debt, which will become due within one year.

Country Garden is a Foshan, China, real estate developer.

Sunac China Holdings Ltd. priced $500 million 6.65% senior notes due Aug. 3, 2024 at 99.31 on Wednesday. The notes are callable for a make-whole premium until Aug. 3, 2022 and then can be redeemed at 103 after Aug. 3, 2022 and at 101 starting on Aug. 3, 2023.

Morgan Stanley & Co. International plc, Barclays, China Citic Bank International Ltd., China Industrial Securities International Brokerage Ltd., CMB International Capital Ltd., Credit Suisse (Hong Kong) Ltd., Guotai Junan Securities (Hong Kong) Ltd. and HSBC Ltd. are joint global coordinators and joint bookrunners for the Regulation S offering.

Proceeds will be used to repay debt which matures within a year.

Sunac is a Tianjin, China-based residential and commercial property developer.

Huzhou City Investment Development Group Co., Ltd. unit Taihu Pearl Oriental Co. Ltd. sold $300 million of 3.15% notes due 2023 (//BBB), according to a notice.

CCB International, Bank of China, Huatai International, Standard Chartered Bank, DBS Bank Ltd., Bocom International, China Everbright Bank of Hong Kong Branch, CLSA, CMBC Capital, CMB Wing Lung Bank Ltd., Guotai Junan International, ICBC International, Industrial Bank Co., Ltd. Hong Kong Branch, Shanghai Pudong Development Bank Hong Kong Branch and TF International are the joint lead managers and joint bookrunners.

CCB, Bank of China, Huatai, Standard Chartered and DBS are also joint global coordinators.

Listing is expected to become effective on Friday.

The operator of infrastructure construction businesses is based in Huzhou, China.

China’s CSC Financial Co. Ltd. sold $500 million of 1¾% five-year notes on Tuesday, according to a voluntary announcement to the Stock Exchange of Hong Kong Ltd.

The notes are guaranteed by CSCIF Asia Ltd. and represent the first issuance under a $3 billion guaranteed medium-term-note program.

Joint bookrunners of the Regulation S deal are China Securities (International) Corporate Finance Co. Ltd., China Citic Bank International Ltd., HSBC, Barclays Bank plc, Industrial and Commercial Bank of China (Asia) Ltd., ABCI Capital Ltd., Bank of Communications Co. Ltd. Hong Kong Branch, Bank of China Ltd., Bocom International Securities Ltd., CCB International Capital Ltd., China Construction Bank (Asia) Corp. Ltd., China Minsheng Banking Corp., Ltd. Hong Kong Branch, CMB International Capital Ltd., CMB Wing Lung Bank Ltd., CMBC Securities Co, Ltd., Daiwa Capital Markets Singapore Ltd., Merrill Lynch (Asia Pacific) Ltd., Mizuho Securities Asia Ltd., Shanghai Pudong Development Bank Co. Ltd., Hong Kong Branch, SPDB International Capital Ltd. and Standard Chartered Bank.

The proceeds are earmarked for general corporate purposes and to refinance existing debt.

CSC Financial Co. Ltd. is a securities company based in Beijing.

Beyond the Asia region, Banco Votorantim SA of Sau Paulo, Brazil, priced $500 million of 4 3/8% notes due 2025, according to a notice.

The series 141 Rule 144A and Regulation S notes will be listed on the Global Exchange Market of Euronext Dublin. But new paper for the region otherwise was scarce this past week.

Ecuador announced that it is extending the expiration date and consent deadline of its invitation relating to about $17.4 billion of its external bonds following a hearing before the U.S. District Court for the Southern District of New York, according to a news release Thursday.

The deadline is now 11 a.m. ET on Aug. 3, pushed back from 11 a.m. ET on July 31.

The bonds eligible for the offer include $2 billion principal amount outstanding of the 10¾% bonds due March 28, 2022 (ISINs: XS1458516967, XS1458514673); $1 billion principal amount outstanding of the 8¾% bonds due June 2, 2023 (ISINs: XS1626768656, XS1626768730); and $2 billion principal amount outstanding of the 7.95% bonds due June 20, 2024 (ISINs: XS1080331181, XS1080330704).

Argentina’s YPF SA announced the results of its offer to exchange its $1 billion principal amount of outstanding 8½% senior notes due 2021 (Cusips: 984245AM2 and P989MJBG5) for new 8½% senior amortizing notes due 2025 and cash, according to a news release.

As of expiration of the offer at 11:59 p.m. ET on July 30, $587,348,000 principal amount of the old notes were tendered and not validly withdrawn by the expiration, of which $3,165,000 of the old notes were validly tendered and not withdrawn after the early participation date.

On July 21, the company issued about $540 million principal amount of new notes and paid about $90 million in cash including accrued interest on the old notes that were tendered.

The settlement date for the old notes for the notes tendered after the early participation date is expected to occur on July 31. The company expected to issue an additional $2.9 million principal amount of new notes and $400,000 in cash. Holders will also receive accrued interest up to but not including the final settlement date.

As previously reported, the early exchange consideration was extended until the July 30 expiration date.

For each $1,000 of notes tendered for exchange, the company is offering a total exchange consideration of $925 of new notes and $125 in cash.

The new notes are being offered under Rule 144A.

D.F. King & Co., Inc. (800 848-3410, 212 269-5550 or ypf@dfking.com) is the exchange agent and information agent.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106), Itau BBA USA Securities Inc. (888 770-4828 or 212 710-6749) and Santander Investment Securities Inc. (855 404-3636 or 212 940-1442) are the dealer managers.

YPF is a petroleum and natural gas company based in Buenos Aires.

Back in Asia, Philippines’ Filinvest Development Corp. announced plans to issue dollar-denominated bonds in the offshore market in August.

The company’s board of directors approved the proposed issuance at its meeting held on Thursday.

Filinvest is a Taguig City-based real estate developer.

Prosus prices 30-year paper

Amsterdam-based Prosus priced $1 billion of 4.027% 30-year senior notes (Baa3/BBB-) at par to yield a spread of Treasuries plus 280 basis points on Monday, according to additional details of the offering from a market source.

Initial talk was in the 315 bps over Treasuries area.

BofA Securities, Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC were the bookrunners of the Rule 144A and Regulation S offering. Citigroup will bill and deliver.

Fixed-income investor calls were held last week.

Proceeds will be used for general corporate purposes.

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