Chinese issuers set roadshows; quiet session ahead of holiday; Pacific Rubiales bonds fall

By Christine Van Dusen

Atlanta, May 22 – China National Bluestar Group Co. Ltd. and China Three Gorges Corp. set roadshows on a quieter Friday for emerging markets assets, as investors prepared for the three-day weekend in the United States.

Latin America-focused Pacific Rubiales Energy Corp. remained on radar screens, with the company’s notes dropping on the news that the O’Hara Group, a collection of Venezuelan investors who oppose the accepted takeover from Mexico-based Alfa SAB de CV and Harbour Energy Ltd., planned to exercise its dissent rights regarding Pacific Rubiales’ shares.

That led the market to think that the deal might not go through, a New York-based trader said.

In other news from the region, Chile’s Latam Airlines Group SA is looking to issue senior notes, according to a company announcement.

The Rule 144A and Regulation S notes will be launched concurrent with a tender offer.

The proceeds from the new issue will be used to refinance the existing 9½% notes due 2020, to redeem any 2020 notes not tendered and for general corporate purposes.

Market sources also were whispering about a possible issue of dollar-denominated notes from Beijing-based China Minmetals Corp.

Bluestar sets roadshow

China National Bluestar will set out on Monday for a roadshow to market a dollar-denominated issue of notes, a market source said.

Deutsche Bank, Morgan Stanley and BOC International are the joint global coordinators and – along with JPMorgan and BNP Paribas – the joint bookrunners and joint lead managers for the Regulation S deal.

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

Bluestar is a chemical product manufacturer based in Chaoyang.

Roadshow for Three Gorges

China Three Gorges has mandated three banks to lead a roadshow for a dollar- or euro-denominated issue of notes (expected ratings: Aa3//A+), a market source said.

JPMorgan, Deutsche Bank, ICBC, Goldman Sachs, Bank of China, Societe Generale CIB, CCB International and Citic CLSA Securities are the bookrunners for the deal. Guotai Junan International, Haitong International and Santander Global Banking and Markets are the co-managers.

The roadshow will begin on May 27 and take place in Asia, Europe and the United States.

Three Gorges is a state-owned power company, based in Beijing.

Indonesia deal draws orders

Indonesia’s new $2 billion 4 3/8% notes due 2025 that priced Thursday at par to yield 4 3/8% was nearly 3½ times oversubscribed, drawing an order book of about $6.8 billion from 240 accounts, a market source said.

The notes were talked at a yield in the 4.55% area.

CIMB Group, Dubai Islamic Bank, HSBC and JPMorgan were the bookrunners for the Rule 144A and Regulation S deal.

About 41% of the orders came from the Middle East and Islamic investors, 21% from the United States, 16% from Europe, 10% from Indonesia and 12% from non-Indonesia Asia.

On Friday the notes were spotted at 100.15 bid, 100¼ offered.

Bank Dhofar prints add-on

In another Thursday deal, Oman’s Bank Dhofar SAOG printed $300 million of 6.85% perpetual tier 1 capital securities at par to yield 6.85%, or Treasuries plus 512.8 basis points, according to an offering document.

National Bank of Abu Dhabi and Standard Chartered Bank were the joint lead managers and global coordinators, and Emirates NBD was a lead manager for the Regulation S deal.

The proceeds will be used to increase the lender’s tier 1 capital for the purpose of improving capital adequacy and for general corporate purposes.

The company is an Oman-based lender.

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