Brazil's BRF bonds price tight of talk; South Korea's GS Caltex, Korea Exchange Bank on deck

By Aleesia Forni

Virginia Beach, May 15 - Brazil's BRF SA brought a $750 million offering of 10-year bonds to Thursday's primary, while a number of potential issuers announced plans to hit the market in the coming weeks.

BRF sold the 4.75% notes due 2024 with a spread of Treasuries plus 245 basis points, an informed source said.

The issue sold at the tight end of talk, which had firmed to around 15 bps from earlier guidance.

The session also saw Vallianz Holdings Ltd. sell a S$60 million issue of 7¼% two-year notes at par in a Regulation S only deal.

Other emerging markets names including Country Garden Holdings Co. Ltd., South Korea's GS Caltex Corp. and Korea Exchange Bank joined the forward calendar on Thursday.

Country Garden Holdings announced price talk for a five-year benchmark offering of senior notes in the 8 3/8% area on Thursday, according to a market source.

South Korea's GS Caltex is set to kick off an international roadshow next week, having tapped BofA Merrill Lynch, Citigroup, Morgan Stanley and BNP Paribas as leads.

The bank plans to price an offering of dollar-denominated notes following the roadshow subject to market conditions.

Also on Thursday, Korea Exchange Bank announced plans to price dollar-denominated notes.

A roadshow for the potential issue is slated to begin on May 19 with stops in Asia, Europe and the United States.

Meanwhile, Mexico's Empresas ICA SAB de CV is planning to sell a dollar-denominated offering of notes.

The company has mandated Barclays, Credit Suisse, Deutsche Bank and Morgan Stanley for a roadshow, which will begin Friday and run through May 20.

In other market action on Thursday, Croatia is also planning to tap the bond market, having mandated Banca IMI, Deutsche Bank Securities, J.P. Morgan Securities and Societe Generale to arrange the roadshow ahead of a possible euro-denominated offering.

China's Yanzhou Coal Mining Co. Ltd. set talk for a proposed offering of dollar perpetual notes at 7.2%, a market source said.

In secondary action from that region, a source noted that Asian credit spreads moved slightly wider early during Thursday's session.

BRF prices tight

Brazil's BRF priced $750 million of 4.75% 10-year bonds (Baa3/BBB-/BBB-) on Thursday with a spread of Treasuries plus 245 bps, an informed source said.

The notes priced at 99.422 to yield 4.952%.

Pricing was at the tight end of the Treasuries plus 250 bps area talk.

BB Securities, BTG Pactual, Itau BBA, Morgan Stanley and Santander were the joint bookrunners.

The notes are being offered concurrently with a tender offer for $220,718,000 of outstanding 6 7/8% notes due 2017 issued by subsidiary Sadia Overseas Ltd. and the $629,282,000 of outstanding 7¼% senior notes due 2020 issued by subsidiary BFF International Ltd.

BRF is a food company based in Itajai, Brazil.

Vallianz brings S$60 million

Vallianz Holdings priced S$60 million of 7¼% notes due Nov. 22, 2016 at par on Thursday, according to a market source.

ANZ was the lead manager for the Regulation S only deal.

Settlement is slated for May 22.

Country Garden sets talk

Country Garden Holdings set price talk for its planned five-year dollar-denominated benchmark offering of senior notes (expected: Ba2/BB/BB+) in the area of 8 3/8% on Thursday, according to a market source.

Proceeds will be used to refinance debt and for general corporate purposes.

Goldman Sachs and JPMorgan are the joint global coordinators for the Rule 144A and Regulation S deal and are joined by BOC International and HSBC as joint bookrunners.

Country Garden is a Foshan, China-based real estate developer focused on large-scale residential communities.

Caltex eyes dollar notes

South Korea's GS Caltex has mandated BofA Merrill Lynch, Citigroup, Morgan Stanley and BNP Paribas as the bookrunners for a possible issue of dollar-denominated notes, according to a market source.

The company will begin a series of investor meetings on May 20, with stops in the United States, Europe and Asia.

Caltex is an oil refiner based in Seoul, South Korea.

KEB plans roadshow

Korea Exchange Bank is planning to begin a roadshow on Monday in Asia, Europe and the United States ahead of a possible dollar-denominated bond offering, according to a market source.

Mizuho Securities, Credit Agricole, Citigroup Global Markets Inc., HSBC Securities and Korea Exchange Bank are arranging the meetings.

The bank was last in the dollar market with a $200 million offering of 5 5/8% tier 2 notes due 2023 priced with a spread of Treasuries plus 205 bps on Oct. 17, 2013.

Korea Exchange Bank is based in Seoul, South Korea.

Empresas taps leads

Mexico's Empresas ICA has mandated Barclays, Credit Suisse, Deutsche Bank and Morgan Stanley for a roadshow beginning Friday, according to market sources.

A dollar-denominated Rule 144A and Regulation S issue of notes (B2/B/) may follow.

The marketing trip will begin in Boston and Los Angeles and travel to New York, Santiago and London before concluding with an investor call in London Tuesday.

Empresas ICA is a Mexico City-based construction company.

Croatia planning eurobonds

Croatia (Ba1/BB/BB+) is planning to begin a roadshow Monday ahead of a possible Regulation S euro-denominated offering of notes, according to market sources.

The sovereign has mandated Banca IMI, Deutsche Bank Securities, JPMorgan and Societe Generale to arrange the roadshow.

Yanzhou talks dollar notes

China's Yanzhou Coal Mining set price talk for its planned dollar-denominated offering of perpetual senior notes (Ba1//BB) at 7.2%, according to a market source.

The notes will be non-callable for two years and will be issued by Yancoal International Trading Co. Ltd.

Deutsche Bank, UBS and Credit Suisse are the bookrunners for the Regulation S deal.

The proceeds will be on-lent to the company's subsidiaries for the repayment of debt, for capital expenditures, for working capital and for general corporate purposes.

The notes are expected to price during the May 12 week.

The coal production, processing, marketing and transportation company is based in Zoucheng, China.

United Overseas oversubscribed

Singapore's United Overseas Bank Ltd.'s recently priced S$500 million of 3½% subordinated notes due 2026, which sold at par on Wednesday, were more than two times oversubscribed.

The deal drew an orderbook of S$1.25 billion, according to a market source.

About 87% of the offers came from Singapore, with 13% coming from Asia.

Insurers picked up 42%, private banks 34%, asset and fund managers 14%, banks 8% and agencies 2%.

ANZ, HSBC, UBS AG, Singapore Branch, and United Overseas Bank are the bookrunners for the Regulation S deal.

ICBC distribution

Asian investors picked up the majority of the recent new issue from Industrial and Commercial Bank of China Ltd.'s Singapore branch.

The bank sold $700 million of 2½% notes due Nov. 21, 2017 (expected rating: A1) on Wednesday at 99.551 to yield 2.635%, or Treasuries plus 180 bps.

Around 89% of orders came from Asia, while 11% came from Europe.

About 52% of the orders were from banks, 28% from fund managers, 11% from insurers, 5% from private banks and 4% from the public sector.

ICBC, Singapore Branch, ICBC Asia, ICBC International, DBS Bank, HSBC, JPMorgan and Standard Chartered Bank were the bookrunners for the Regulation S deal.

ICBC is a lender based in Beijing.

ADBC orders top RMB 6 billion

Agricultural Development Bank of China's new issue of RMB 2 billion two-year notes (expected rating: Aa3) drew an orderbook of RMB 6 billion from 49 accounts.

Banks picked up 50%, fund managers and insurers 28% and sovereign wealth funds 20%.

Asian investors grabbed 85%, while 15% of orders came from Europe.

Bank of China, Standard Chartered Bank, ICBC Asia, CCB International, Agricultural Bank of China, Bank of Communications, HSBC, Credit Agricole and National Australia Bank were the bookrunners for the Regulation S deal.

Christine Van Dusen contributed to this review

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.