Primary sees Kexim, Access Bank; oil reverses recent gains; Turk Telekom eyed; roadshows ahead

By Christine Van Dusen

Atlanta, Oct. 13 – Export-Import Bank of Korea (Kexim), Netherlands-based Cable Communications Systems NV, Modern Land (China) Co. Ltd., Nigeria’s Access Bank plc and Panama’s Global Bank Corp. sold notes on Thursday as investors digested the Federal Open Market Committee’s minutes and oil prices reversed some gains amid continuing doubts about an agreement to curb production levels.

The FOMC’s minutes “continue to support a rate hike later in the year, as September’s meeting was a ‘close call,’ with some participants believing that the Fed funds rate target range should be raised ‘relatively soon’ while ‘others preferred to wait for more convincing evidence that inflation was moving toward the committee’s 2% objective,’” a London-based analyst said.

Investors were also keeping an eye on Turkey-based Turk Telekomunikasyon AS (Turk Telekom), which has missed a payment on a syndicated loan.

“We think that Turk Telekom should be fairly insulated from the matter for now, acknowledging that the telco already has a dividend policy to distribute 100% of distributable profit to serve its shareholders’ needs to service debt,” the analyst said.

Turk Telekom stocks have fallen by 1.9% over the week, “but remained unaffected by the event,” he said. “Similarly, Turk Telekom bonds have widened, circa 10 bps, over the week, in line with other corporates and the sovereign.”

In trading, the new deal from Abu Dhabi National Energy Co. (TAQA) – $750 million of taps of its notes due 2021 and 2026 – saw some activity on Thursday.

The $250 million tap of the existing 3 5/8% notes due 2021 that priced at 102.485 to yield 3.05%, after talk in the 3.2% area, traded Thursday at 102.61 bid, 102.86 offered.

The $500 million tap of the existing 4 3/8% notes due 2026 that priced at 104.614 to yield 3.8%, after talk in the range of 4% to 4 1/8%, traded Thursday at 104.55 bid, 104.90 offered.

Citigroup, Mizuho Securities, MUFG Securities and Standard Chartered Bank were the bookrunners for the Regulation S deal.

Kexim prints four tranches

In its new deal, Korea’s Kexim priced $2.5 billion in four tranches due in three, five and 10½ years, a market source said.

The $750 million 1½% notes due Oct. 21, 2019 priced at 99.685 to yield Treasuries plus 60 basis points, following talk in the Treasuries plus 65 bps area.

The $750 million floating-rate notes due Oct. 21, 2019 priced at par to yield Libor plus 46 bps.

The $300 million 1 7/8% notes due Oct. 21, 2021 priced at 99.564 to yield Treasuries plus 70 bps, following talk in the 75 bps area.

The $700 million 2 3/8% notes due April 21, 2027 priced at 99.355 to yield Treasuries plus 70 bps, following talk in the 75 bps area.

ANZ Securities, BofA Merrill Lynch, Credit Agricole CIB, Morgan Stanley, Mizuho Securities, Societe Generale CIB and UBS were the joint bookrunners and – along with Samsung Securities – the joint leads for the Securities and Exchange Commission-registered deal. Kexim UK was a co-manager.

The proceeds will be used for general operations, according to a company filing.

The lender is based in Seoul.

Modern Land sells notes

In another new deal, Modern Land priced a $350 million issue 6 7/8% green bonds due Oct. 20, 2019 at 99.667 to yield 7%, a market source said.

Guotai Junan Securities (Hong Kong) Ltd., Morgan Stanley & Co. International plc and Hongkong and Shanghai Banking Corp. Ltd. are the joint global coordinators. Guotai Junan, Morgan Stanley, HSBC, UBS AG Hong Kong Branch, VTB Capital plc and Zhongtai International Securities Ltd. were the joint bookrunners and joint lead managers, and HSBC and Skandinaviska Enskilda Banken AB were the joint green structuring advisers.

The proceeds of the Regulation S notes will be used to fund existing projects and businesses with environmental benefits in alignment with the Green Bond Principles, by way of refinancing existing debt in relation to these projects.

Modern Land is a property developer is based in Beijing.

Cable Communications notes

Netherlands-based Cable Communications Systems priced €350 million 5% notes due in October of 2023 at par to yield 5%, a market source said.

The notes were talked at a yield of 5% to 5¼%.

The deal was initially expected to total €275 million. A proposed Romanian leu-denominated tranche was reportedly withdrawn.

JPMorgan, Citigroup, Deutsche Bank, ING, Societe Generale and UniCredit were the bookrunners for the Rule 144A and Regulation S deal.

The issuer is an Amsterdam-based cable television company.

Access Bank prices notes

Nigeria’s Access Bank priced $300 million 10¾% notes due Oct. 19, 2021 at 99.052 to yield Treasuries plus 948.7 bps, a market source said.

Barclays was the global coordinator and, along with Citigroup and JPMorgan, the lead for the Rule 144A and Regulation S deal.

The proceeds will be used for general banking purposes and to refinance indebtedness.

The company is also inviting holders of its $350 million 7¼% notes due 2017 to exchange the notes for the new dollar notes.

The lender is based in Lagos.

New deal from Global Bank

Panama’s Global Bank sold $550 million 4½% notes due Oct. 20, 2021 at 99.942 to yield Treasuries plus 325 bps, a market source said.

Citigroup, Deutsche Bank, JPMorgan and UBS were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used for general corporate purposes.

The issuer is a bank based in Panama City, Panama.

Malaysia’s EXIM guides notes

Export-Import Bank of Malaysia Bhd. (EXIM Bank) set guidance at Treasuries plus 120 bps to 125 bps for a $500 million issue of five-year notes (expected ratings: A3//A-), a market source said.

CIMB, Maybank, HSBC and Nomura are the bookrunners for the Regulation S deal.

The proceeds will be used for general banking and financing activities, working capital and for other corporate purposes.

The lender is based in Kuala Lumpur.

Talk from CCB

China Construction Bank Corp. set talk in the Treasuries plus 110 bps area for a dollar-denominated and benchmark-sized issue of notes due in five years, a market source said.

The notes will be issued via subsidiary State Elite Global Ltd.

CCB International, China Construction Bank (Asia), CCB Singapore, HSBC, Agricultural Bank of China, ANZ, BofA Merrill Lynch, BOCOM, GF Securities Brokerage, Guotai Junan International, KDB Asia, Morgan Stanley, Shanghai Pudong Development Bank, Standard Chartered Bank and Wing Lung Bank are the bookrunners for the deal.

The proceeds will be used for general corporate purposes.

The lender is based in Beijing.

Enersis sets roadshow

In other deal-related news, Chile’s Enersis Americas SA will set out on Oct. 17 for a roadshow to market a dollar-denominated issue of notes, a market source said.

BBVA, Citigroup, JPMorgan, Morgan Stanley and Santander are the bookrunners for the Securities and Exchange Commission-registered deal.

The proceeds will be used for repayment of the company’s 7.4% notes due Dec. 1, 2016 and its associated derivatives, to repurchase common stock, as part of the overall reorganization of the company’s businesses in Latin America, and for general corporate purposes.

The notes will include a make-whole call.

The roadshow will begin in London and travel to Boston before concluding on Oct. 19 in New York.

Enersis holds direct and indirect participation in the electric power generation, transmission and distribution businesses. It holds a 60% interest in Endesa Chile, an electricity generation company. Both are based in Santiago, Chile.

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