Emerging markets: Mexico's Ajecorp sells upsized $300 million deal; Bahrain taps dealers

By Aleesia Forni and Paul A. Harris

Columbus, Ohio, May 8 - Economic uncertainty in Europe continues to take a toll on investors' inclination to buy risk in the emerging markets space, one market source said on Tuesday.

Ajecorp upsizes

In the primary market, Mexico's Ajecorp BV's priced an upsized $300 million 10-year bond at par to yield 6½%.

The yield printed 12.5 basis points below the tight end of the revised 6¾% area price talk.

Earlier yield guidance was in the 7% area.

The order bookrunner was eight-times oversubscribed, according to a buyside source, who saw the new Ajecorp 6½% bonds up a point in the gray market.

Bank of America Merrill Lynch, the deal's bookrunner, moved up the pricing of the deal, which was upsized from $250 million, ahead to Tuesday afternoon from Wednesday due to the strong investor demand.

Proceeds will be used to prepay interest on the company's loans, as well as for general corporate purposes.

Bahrain mandates banks

Also in the primary, Bahrain has mandated Citigroup, Standard Chartered Bank, JPMorgan and Gulf International Bank ahead of a possible sovereign bond offering.

Though timing on the deal has not been confirmed, one market source believes the deal could come by the end of this month.

In other news, Turk Ekonomi Bankasi AS's board of directors has approved a $65 million bond due 2024, which bears interest at Libor plus 575 bps, according to a company news release.

The bond becomes callable on May 14, 2019.

As previously announced in October 2011, the bank's board approved the issuance of up to €800 million of bonds.

Turk Ekonomi privately placed the bonds with European investors.

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