Uruguay guides pricing of dollar bonds due 2031; Indian Oil to price $900 million 4¾% notes

By Rebecca Melvin

New York, Jan. 15 – The emerging markets primary market remained muted on Tuesday, but the Republic of Uruguay, which represented a long-awaited sovereign for the Latin America region, announced a deal and guided pricing for dollar-denominated bonds due 2031.

Uruguay guided pricing for the new issue for a yield of Treasuries plus 185 basis points area, which was tightened from initial price thoughts of Treasuries plus low 200 bps, and final pricing was expected to be set later Tuesday.

The Securities and Exchange Commission-registered bonds for the Latin American country may provide Latin America issuers the signal they need to come to market. The dollar-denominated note deal for Colombia’s Termocandelaria Power Ltd. is on roadshow through this week, but according to market chatter, the company was hoping for a new sovereign issue to price before it exposed itself to the market.

The Uruguay notes were being sold via joint bookrunners Itau BBA, JPMorgan and Scotiabank at the same time the sovereign was offering to purchase for cash three series of global bonds in a one-day tender. The notes eligible for the tender offer were Uruguay’s $550.58 million of 8% global bonds due 2022, $1.29 billion of 4½% global bonds due 2024 and $2.1 billion of 4 3/8% global bonds due 2027.

Uruguay was last in the international market for a new bond issue in April 2018 with a $1.75 billion issue of 4.975% bonds due 2055.

Indian Oil launches

Also primary action, Indian Oil Corp. Ltd. said Tuesday it launched an offering of $900 million of 4¾% notes due 2024.

Citigroup, DBS Bank, Sbicap Securities, Standard Chartered Bank and Westpac Banking are bookrunners for the issue.

Proceeds will be used to fund working capital.

Based in New Delhi, the oil and gas company is 54% owned by the government.

China Aoyuan Property Group Ltd., which was on the forward calendar, priced $500 million 8½% notes due 2022 (B2//BB-) at par, according to a company filing.

The notes are callable prior to Jan. 23, 2021 at par. After Jan. 23, 2021, the company may redeem up to 35% of the principal at 108.5%, subject to certain conditions.

Bank of America Merrill Lynch, Bank of East Asia, Ltd., Bocom International, CEB International, CMB International, Deutsche Bank, Guotai Junan International, Haitong International, Orient Securities (Hong Kong) and UBS are the joint lead managers and joint bookrunners for the dollar notes.

Proceeds of the Regulation S deal will be used to refinance the group’s offshore debt and for general working capital.

And Zhenro Properties Group Ltd., which was expected to price an add-on to a series of 2020 notes, priced $200 million of 8.6% senior notes due 2020, according to a notice.

The Regulation S notes were expected to be listed and traded on the Hong Kong Stock Exchange on Wednesday.

The company is a real estate developer and property manager based in Shanghai.

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