Primary sees deals from Brazil, Minerva; Ukraine gets support; Lat-Am finishes mostly flat

By Christine Van Dusen

Atlanta, March 27 - Brazil and Brazil's Minerva SA sold notes on Thursday as most emerging markets bonds tightened ahead of month-end and fears of a default for Ukraine were calmed.

The International Monetary Fund has reached a deal with Ukraine to provide $15 billion in financial support, news that put the possibility of a default "on the backburner," according to a report from Erste Group Research.

But not all of the news was good for bonds in this arena - the European Union is developing further sanctions against Russia and Standard & Poor's moved the outlooks for several banks to negative.

Still, Turkish banks firmed and Russian sovereign paper was "marginally tighter" on Thursday, a London-based analyst said.

Looking to Latin America, low-beta credits moved tighter by between 2 basis points and 5 bps on Thursday, a New York-based trader said.

These bonds were bid-only for most of the session, pushing prices up between ½ point and 2½ points as paper was hard to come by.

A sell-off was seen toward the end of the day, so most names finished Thursday mostly unchanged, he said.

Still, Venezuela and PDVSA bonds did move up between 25 cents and 50 cents, with the sovereign's 2027s at $77.50, he said.

Bonds from Argentina, which recently had hit highs, saw a sell off on news that gross domestic product growth numbers were being recalculated, he said.

Also on Thursday, India's Icici Bank Ltd. set talk, Kazakhstan pondered issuance and Kimberly-Clark de Mexico SAB de CV and Dubai's Damac Real Estate Development Ltd. scheduled roadshows.

Brazil sells notes

In its new deal, Brazil printed a €1 billion issue of 2 7/8% notes due 2021 at 99.464 to yield 2.961%, or mid-swaps plus 165 bps.

The notes were talked at a spread of 165 bps to 170 bps.

BB Securities, JPMorgan and Santander are the bookrunners for the Securities and Exchange Commission-registered deal.

The proceeds will be used for general budgetary purposes.

Issuance from Minerva

Brazil-based food processing company Minerva sold $300 million 8¾% perpetual notes at par to yield 8¾%, a market source said.

The notes were talked at a yield in the 9% area before being revised to the 8 7/8% area.

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

The proceeds will be sued to repay existing indebtedness and for general corporate purposes.

Icici gives guidance

India's Icici Bank set talk in the mid-swaps plus 250-bps area for an issue of at least A$100 million notes due 2019, a market source said.

ANZ and HSBC are the bookrunners for the Regulation S deal.

The notes will be issued by the lender's Bahrain branch.

Mexico corporate sets roadshow

Kimberly-Clark de Mexico will set out on Friday for a roadshow to market a possible issue of notes, a market source said.

BofA Merrill Lynch and Citigroup are arranging the marketing trip, which will start in London and travel to Los Angeles, Chicago and Boston before concluding on April 2 in New York.

KCM is 48%-owned by Kimberly-Clark Holland Holdings BV, a subsidiary of consumer products company Kimberly Clark Corp.

Marketing trip for Damac

Dubai-based luxury property developer Damac will embark on Friday for a roadshow to market a dollar-denominated issue of Islamic bonds, a market source said.

Barclays, Citigroup and Deutsche Bank are the joint global coordinators. The three banks - along with Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital and National Bank of Abu Dhabi - are also joint lead managers.

The roadshow begins March 28 in Singapore and will travel to Dubai and Abu Dhabi before wrapping up on March 31 in London.

A Regulation S deal is expected to follow.

Kazakhstan ponders issuance

Kazakhstan could issue dollar-denominated international bonds during the first half of this year, a market source said.

No other details were immediately available on Thursday.

Mivivienda does deal

On Wednesday, Peru's Fondo Mivivienda SA sold $300 million 3 3/8% notes due 2019 at 99.763 to yield Treasuries plus 175 bps, a market source said.

The notes were talked in the 180-bps area.

BofA Merrill Lynch, JPMorgan and Credicorp were the bookrunners for the deal.

Mivivienda is a for-profit mortgage financing institution owned by the Republic of Peru and based in Lima.

Singapore Airlines gets orders

The final book for Singapore Airlines' new two-tranche issue of S$500 million notes due 2021 and 2024 was S$850 million, a market source said.

The S$200 million tranche of 3.145% notes due 2021 priced at par to yield 3.145% and attracted S$400 million in orders.

About 50% came from fund managers and insurers, 36% from banks, 10% from private banks and 4% from others.

The S$300 million tranche of 3¾% notes due 2024 also priced at par, to yield 3¾%. The final book was S$450 million, with 96% of the orders from Singapore and 4% from Hong Kong.

Fund managers picked up 94% while banks, private banks and others took up 6%.

DBS was the sole bookrunner for the Regulation S deal.

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