Primary hosts ALFA; roadshows for CMPC, Great Wall Asset Management; Ukraine in focus

By Christine Van Dusen

Atlanta, Sept. 5 – Mexico’s ALFA SAB de CV printed notes on a Friday that saw investor sentiment improve on developments in Ukraine, then decline slightly on the news that hiring slowed in the United States in August.

“Very quiet after ‘shocking’ data,” a New York-based trader said. “Taking a little breather, I think.”

Still, investors were encouraged by changes in the geopolitical picture. On Friday, pro-Russian rebels and Ukrainian officials signed a protocol to start a ceasefire.

“As a dramatic week in [emerging markets] comes to a close, for the first time in months the prospects of a deal ending the Ukraine conflict seem very real,” a London-based analyst said.

Though the European Union is expected to pursue further sanctions for Russia, the sovereign will “have a set period to demonstrate a commitment to peace before they are actually implemented,” he said. “Previous sanctions could be lifted if a deal holds.”

These developments – along with recent European Central Bank actions – pushed Russian bank bonds tighter by an average of 25 basis points.

“Corporates were 17 bps tighter on average, led by the likes of high-beta Vimpelcom,” he said. “The 2021s were 46 bps tighter.”

Bonds from Ukraine benefitted from the move toward peace, with sovereign notes moving as much as 1½ points higher into the end of the week, said Svitlana Rusakova of Dragon Capital.

“Corporates and quasi-sovereigns were mixed, but typically gaining around 1 point,” she said.

Also getting a boost were bonds from Turkey and Central and emerging Europe, with Turkish banks tightening an average of 17 bps and good demand sighted for Turkiye Is Bankasi AS’ (Isbank) 2019s.

Cemex trades

The new issue of notes from Mexico’s Cemex SAB de CV – €400 million notes due Jan. 11, 2022 and $1.1 billion due Jan. 11, 2025 – received some attention on Friday.

The €400 million 4¾% notes due 2022 priced at par to yield 4¾%, following talk in the 5 1/8% area.

The proceeds will be used for debt refinancing and general corporate purposes.

The $1 billion 5.7% notes due 2025 priced at par to yield 5.7%, following talk in the 5 7/8% area.

The proceeds will be used for general corporate purposes and to fund a tender offer for dollar notes.

“The new Cemex 2025 is leaving a little to be desired here, especially with a four-times oversubscribed book,” a New York-based trader said. “It’s trading at 99¾ now.”

BNP Paribas, BofA Merrill Lynch, JPMorgan and Santander were the active bookrunners for the Rule 144A and Regulation S deal. BBVA, Credit Agricole CIB, Citigroup, HSBC and ING were the passive bookrunners.

Meanwhile, the issuer’s 2024s were taking a hit, trading at 103 1/8, he said.

Gerdau, Braskem firm

In other news from Latin America, Brazil-based Gerdau SA and Braskem SA were still very firm on Friday, the New York trader said.

“But clients haven’t been chasing that, recently,” he said.

Also on Friday, market sources were whispering about a possible issue of Islamic bonds from Goldman Sachs, as well as up to $164 million of notes from Poland’s Jastrzebska Spolka Weglowa SA (JSW) with bookrunners Credit Suisse and JPMorgan.

ALFA prices bonds

On Friday, Mexico’s ALFA priced €500 million 1 3/8% notes due Sept. 12, 2022 at 99.101, a market source said.

BNP Paribas, HSBC, ING and Nordea were the bookrunners for the deal.

Other details were not immediately available on Friday.

ALFA is a business conglomerate based in San Pedro Garza Garcia, Mexico.

Empresas CMPC sets roadshow

Chile’s Empresas CMPC SA will set out on Sept. 8 for a roadshow to market a possible issue of notes, a syndicate source said.

JPMorgan, MUFG and Santander are the bookrunners for the Rule 144A and Regulation S deal.

The roadshow will start in New York, London, Los Angeles and Santiago and conclude on Sept. 9 in New York, Boston, Chicago and Santiago.

Empresas CMPC is a Santiago, Chile-based pulp and paper company.

Roadshow for Chinese corporate

China Great Wall Asset Management Corp. will set out on Sept. 8 for a roadshow to market a dollar-denominated issue of notes, a market source said.

The roadshow will be held in Hong Kong, Singapore and London.

Bank of China, Standard Chartered Bank and Guotai Junan International are the joint global coordinators. Bank of China, Standard Chartered Bank, Guotai Junan International, CCB International, ICBC (Asia), Agricultural Bank of China, ABC International, Deutsche Bank, Credit Suisse, HSBC and Wing Lung Bank are the lead managers and joint bookrunners for the Regulation S deal.

The bonds will be issued by indirect, wholly owned subsidiary China Great Wall International Holdings Ltd.

Jurong Shipyard’s final book

The final book for Singapore-based Jurong Shipyard Pte. Ltd.’s two-tranche issue of S$600 million notes due 2021 and 2029 was more than S$800 million, a market source said.

DBS was the sole bookrunner for the Regulation S deal.

The transaction included S$275 million 2.95% notes due 2021 that priced at par to yield 2.95%. The notes drew an order book of more than S$400 million from 39 accounts.

About 98% of the orders came from Singapore and 2% from Hong Kong.

The S$325 million 3.85% notes due 2029 that priced at par to yield 3.85% received more than S$400 million in orders from 25 accounts.

About 99% of the orders came from Singapore and 1% from Hong Kong.

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