Croatia prices; Coca-Cola Femsa, PTA Bank plan new deals; Korea Land brings floaters

By Aleesia Forni

Virginia Beach, Nov. 19 - The Republic of Croatia and Korea Land & Housing Corp. priced new deals on Tuesday, as emerging market bond spreads were mixed during the session.

"Still feels a decent bid to the market," one London-based source said on Tuesday, adding that liquidity was "testing on many bonds" overall.

Croatia sold $1.75 billion of 6% notes at 98.488 to yield 6.2% on Tuesday, according to a market source.

Meanwhile, Korea Land & Housing priced CHF 400 million two-year floating-rate notes (A1) at par to yield Libor plus 65 basis points, according to a syndicate source.

Details emerged on a recent trade by Colombia-focused Pacific Rubiales Energy Corp., which sold $1.3 billion of 5 3/8% notes due 2019.

There was also a new deal announcement from Mexico's Coca-Cola Femsa SAB de CV.

The company was eyeing a dollar-denominated offering of senior notes.

In other primary news, Eastern and Southern African Trade and Development Bank (PTA Bank) announced plans to price a five-year dollar-denominated issue of notes.

Also on Tuesday, Afren plc kicked off a roadshow for a planned seven-year senior offering of notes, according to a market source.

The roadshow began in Los Angeles on Tuesday and will move to New York on Wednesday, to Boston on Thursday and to London on Friday.

In secondary action, a trader noted that Dubai's Emaar Properties' $500 million of 6.4% notes due 2019 were "heavy" on Tuesday.

The notes opened the session at 108.62 bid, 109.12 offered before trading down to 108¼ later during the day.

The notes priced at par to yield 6.4%, or mid-swaps plus 519.3 bps, on July 12, 2012.

Emaar is a property developer.

The recently priced deal from India's Icici Bank Ltd. was trading better during Tuesday's session.

"Seeing lots of movement in the new [Icici] bonds," a trader said.

The $750 million 4.8% notes due 2019 sold on Monday.

Croatia prices tight

The Republic of Croatia priced a $1.75 billion issue of 6% notes at 98.488 to yield 6.2% on Tuesday, according to a market source and a company release.

The yield printed tight of talk, which was set at 6 3/8% after tightening from guidance of 6½% to 6 5/8%.

The notes were sold in a Rule 144A and Regulation S transaction.

Barclays, BNP Paribas, Deutsche Bank AG London Branch and J.P. Morgan Securities plc are managing the sale.

Korea Land sells floaters

Tuesday's primary also saw Korea Land & Housing Corp. price a CHF 400 million issue of two-year floating-rate notes (A1) at par to yield Libor plus 65 bps, according to a syndicate source.

The joint bookrunners were Deutsche Bank, HSBC, RBS Securities and UBS.

The Seongnam, South Korea-based company engages in the construction and management of land and housing properties.

Afren roadshows

Afren began a roadshow on Tuesday in Los Angeles for a to-be-determined amount of seven-year senior secured notes (/B+/B+), according to a market source.

The roadshow moves to New York on Wednesday, to Boston on Thursday and to London on Friday.

The London-based oil and gas exploration, development and production company has operations in Africa and the Middle East. As such, the deal is being transacted on the emerging markets desk but is expected to also garner an audience among high-yield investors, sources say.

Global coordinator Citigroup is a joint lead manager and joint bookrunner for the Rule 144A and Regulation S for life offering. BofA Merrill Lynch and Credit Suisse are also joint lead managers and joint bookrunners.

The notes come with three years of call protection.

Proceeds will be used to fund the tender for the company's notes maturing in 2016 and 2019; a clause in the credit agreement allows for the security on the notes to fall away upon full repayment of the 2016 and 2019 notes.

PTA Bank plans deal

PTA Bank is planning to conduct a roadshow ahead of a possible five-year dollar-denominated issue of notes, according to an informed source.

The bank has chosen BNP Paribas and Standard Chartered Bank to arrange the meetings.

PTA Bank is a lender based in Bujumbura, Burundi.

Coca-Cola Femsa eyes notes

Mexico's Coca-Cola Femsa was eyeing a dollar-denominated offering of senior notes in two parts on Tuesday, according to a market source.

Citigroup, Goldman Sachs, JPMorgan, HSBC and Mitsubishi UFJ Securities are the joint bookrunners.

Passive bookrunners are Credit Agricole CIB and Mizuho Securities.

Proceeds will be used for general corporate purposes.

The company previously held a U.S. roadshow that ran through Nov. 7.

Femsa is a Monterrey, Mexico-based Coca-Cola bottler.

Pacific Rubiales prices notes

Pacific Rubiales Energy priced a $1.3 billion issue of 5 3/8% notes due 2019 at 99.985 to yield 5 3/8%, according to an informed source.

The company had talked the notes (Ba2/BB+/BB+) in the mid-5% area.

BofA Merrill Lynch, Citigroup, HSBC and Itau BBA were the bookrunners for the Rule 144A and Regulation S deal.

"We tried to get involved in it this morning, oddly enough, but we just couldn't find a whole lot of people that wanted to play," a trader said.

"I want to say it was up ¼ to ¾ of a point, but as the day wore on, I didn't see much go on."

At mid-afternoon, Trace was showing the new 5 3/8% bonds due 2019 at 100.15 on volume of more than $108 million, according to a market source.

Meanwhile, the company's existing 5 1/8% notes due 2023 were at 91 bid on volume of more than $11 million.

The $1 billion of 10-year notes were sold at par to yield 5 1/8% on March 25.

Pacific Rubiales's 7.25% notes due 2021 were at 107½ bid on volume of over $6 million, the source added.

The company priced the upsized $300 million issue of 10-year notes at par on Dec. 5, 2011.

Toronto-based Pacific Rubiales is an oil and gas exploration and production company focused on Colombia.

Icici Bank notes firm

In secondary market action, India's Icici Bank's $750 million 4.8% notes due 2019 traded around 20 bps tighter compared to its new issue spread, a trader said.

The notes were quoted at 334 bps bid, 336 bps offered

Icic Bank sold the notes at 99.609 to yield 4.882%, or Treasuries plus 355 bps, on Tuesday.

BofA Merrill Lynch, Barclays, Citigroup, Deutsche Bank, HSBC and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.

Icici Bank is based in Mumbai.

Paul A. Harris and Paul Deckelman contributed to this review.

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