Olam, ICBC do deals; Russian bonds widen; Rosneft takes a hit on Yukos ruling; roadshows ahead

By Christine Van Dusen

Atlanta, July 29 – Singapore’s Olam International Ltd. and Industrial and Commercial Bank of China Ltd. (ICBC) sold notes on Tuesday as bonds from Russia continued to widen amid looming sanctions.

The United States has accused the sovereign of sending more troops to the border with Ukraine, a move that increases the likelihood of further sanctions against Russia.

Russian bank bonds widened between 15 basis points and 25 bps during the morning session as the companies awaited further punishment from the European Union and United States, a London-based analyst said.

In other news from Russia, oil company OAO Rosneft – which owns most of the assets of Yukos Oil Co. – saw its bonds take a hit after Russia was ordered to pay Yukos’ former owners $50 billion.

“The settlement has to be paid before January 2015 or else it will start earning interest,” the analyst said. “With Russia set to appeal, it will likely be some time before we have any sort of conclusion on this case. The concern, however, is that assets of both Russia and Rosneft in the West could be frozen.”

Rosneft officials say the company is not subject to the claims, he said.

“Clearly, the impact on Rosneft could be substantial,” he said.

In response to the news, the company’s bonds have widened about 30 bps.

Looking to Latin America, volumes picked up significantly on Tuesday morning and spreads were mostly unchanged, a New York-based trader said.

Banks from Colombia held on to recent gains while names like Colombia’s Ecopetrol SA stayed firm and saw two-way activity, he said.

High-grade names from Brazil remained quiet during the morning and Mexico’s Cemex SAB de CV saw its 2024s weaken further with little selling.

Lat-Am corporates widen

By the afternoon on Tuesday, Latin American corporate bonds were wider as risk aversion set in, another New York-based trader said.

Odebrecht SA and Braskem SA were among the names to show weakness into the close, he said, and volumes lightened overall.

Still, he said, the sector has proved resilient in the face of global turmoil and upcoming economic data from the United States, he said.

Olam sells notes

Singapore’s Olam International priced $300 million 4½% notes due Feb. 5, 2020 at 99.337 to yield 4.638%, or Treasuries plus 295 bps, a market source said.

ANZ, Barclays, JPMorgan and Standard Chartered Bank were the bookrunners for the Regulation S deal.

The proceeds will be used for general corporate purposes.

Singapore-based Olam International is a supply chain manager and processor of agricultural products and food ingredients.

ICBC prices bonds

ICBC priced RMB 1.75 million in notes due in 2016 and 2017 (expected rating: A1), a market source said.

The deal included RMB 1.25 billion 3.4% notes due Feb. 11, 2016 that priced at par to yield 3.4%.

The second tranche totaled RMB 500 million 3.55% notes due Aug. 11, 2017 that priced at par to yield 3.55%.

ANZ, BofA Merrill Lynch, Citigroup, ICBC (Asia), ICBC, Societe Generale and National Australia Bank were the bookrunners for the Regulation S deal.

The issuer is based in Beijing.

KWG gives guidance

China’s KWG Property Holding Ltd. set talk at 8¼% to 8 3/8% for its upcoming issue of up to $400 million of notes due in five years, a market source said.

Goldman Sachs, HSBC, Morgan Stanley, Standard Chartered Bank and UBS are the bookrunners for the Regulation S deal.

The proceeds will be used to refinance existing debt and finance existing and new projects.

KWG Property is a developer based in Guangzhou, China.

Seven Energy sets talk

Nigeria-focused Seven Energy set talk in the mid-9% area for its upcoming issue of $500 million notes due in seven years, a market source said.

Deutsche Bank, Morgan Stanley and Standard Chartered Bank are the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used to redeem convertible bonds, to refinance existing debt and for general corporate purposes.

The energy company is based in Lagos and London.

Roadshow for Findeter

Colombia’s Financiera de Desarrollo Territorial SA (Findeter) will set out on Thursday for a roadshow for a possible issue of notes, a market source said.

The company previously announced plans to issue as much as $500 million of bonds.

BofA Merrill Lynch and Deutsche Bank are the bookrunners for the marketing trip, which begins in Santiago and travels to Boston, Lima, Bogota, London and Los Angeles before concluding in New York.

Findeter is a banking company based in Bogota.

4finance plans marketing trip

Latvia’s AS 4finance will embark on Wednesday on a roadshow to market a possible issue of notes, a market source said.

Credit Suisse is arranging the roadshow.

The Rule 144A and Regulation S marketing trip will be held in Europe and the United States.

The provider of short-term loans is based in Riga, Latvia.

© 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.