Korea's National Agricultural sets talk; BUMI size, structure surface; EMBI-Plus tightens

By Paul A. Harris

St. Louis, Sept. 22 - The EMBI-Plus index was quoted at 316 bps bid, 3 bps tighter on the day, heading into the New York close, according to a buyside source.

Notably during the session Moody's Investors Service upgraded Brazil's debt to Baa3, with the result that the South American country now has investment-grade ratings from all three agencies.

Nevertheless, Brazil's benchmark dollar-denominated 11% bonds maturing in August 2040 remained unchanged from Monday's 133 7/8 bid, 134.1/8 offered.

Meanwhile the new United Mexican States (Baa1/BBB+/BBB+) 5.95% bonds due March 19, 2019, which priced last week in a $1 billion tranche at 106.125 to yield 5.126%, were straddling their issue price heading into Tuesday's close at levels of 105¾ bid, 106¼ offered.

National Agricultural talk

In the primary market Korea's National Agricultural Cooperative Federation set price talk for its dollar-denominated offering of senior fixed-rate notes (A2) at a spread of 240 bps to 250 bps over mid-swaps.

The deal is expected to price on Wednesday.

BNP Paribas, Deutsche Bank, HSBC and JPMorgan are leading the deal, which is being priced from a global medium-term notes program.

BUMA sets size, structure

Based on feedback received on its investor roadshow, Indonesian coal mining firm Bukit Makmur Mandiri Utama (BUMA) plans to approach the global debt capital markets in an effort to raise $600 million, according to a market source.

The financing will included a planned issue of five-year notes, via Rule 144A and Regulation S, as well as a bank loan.

Pricing is expected next week.

Barclays Capital, Deutsche Bank and ING are managers for the financing.

Arcos Dorados initial guidance

In other primary news, Arcos Dorados BV, Latin America's biggest restaurant company, set initial guidance for its $450 million offering of 10-year senior notes (Ba2//BBB-) at the 8% area on Tuesday.

The roadshow continues Wednesday in Boston and on the U.S. West Coast.

Morgan Stanley and Bank of America Merrill Lynch are active bookrunners for the Rule 144A and Regulation S offering. Citigroup, Banco Itau, Banco Santander and Scotia Capital are passive bookrunners.

The company, which owns the license to operate McDonald's restaurants throughout the region, operates out of Buenos Aires.

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