Pemex, Formosa, Haitong print notes; FirstRand, Persero, Korea Hydro, Cinda line up deals

By Christine Van Dusen

Atlanta, April 14 – Mexico’s Petroleos Mexicanos SAB de CV, Taiwan’s Formosa Plastics Group and China’s Haitong International Securities Co. Ltd. were among the issuers to print notes on a Tuesday as Brazil outperformed and Middle Eastern bonds became more active.

Also on Tuesday, Toronto-based and Colombia-focused Pacific Rubiales saw its bonds continue to rally, a New York-based trader said.

“In spite of the rally, Pacific Rubiales bonds are almost 10 points below the mid-March Rubiales concession news,” he said. “And oil is $10 a barrel higher since. We expect Pacific Rubiales to continue toward those levels.”

From the Middle East, prices got a boost from the rally in rates, a London-based trader said.

This came as Dubai’s Noor Bank PJSC set a roadshow for a dollar-denominated issue of benchmark-sized Islamic bonds that would begin on Friday, a market source said.

Standard Chartered Bank, Al Hilal Bank, Citigroup, Dubai Islamic Bank, Emirates NBD Capital, Qinvest, Sharjah Islamic Bank and Standard Chartered Bank are the bookrunners for the Regulation S deal.

The roadshow will be held in the Middle East, Asia and Europe.

“Spreads have largely performed, and plenty of bonds are totally squeezed, so perhaps before summer and Ramadan more issuers will dip the toe,” he said.

Meanwhile, Brazil outperformed among other Latin American issuers as political leaders urged an alliance with opposition parties to help with an austerity push, a trader said.

“And talk that [Petroleo Brasileiro SA] will publish earnings sometime in the next week or so helps push the credit tighter,” he said.

Some selling seen

Some high-yielding bonds saw some selling on Tuesday, a trader said, with paper from Venezuela and PDVSA off by ¼ point to 1 point.

But overall, activity and customer flows were stronger, he said.

In other news on Tuesday, market sources were whispering about a possible issue dollar bonds from Industrial Bank of Korea during the first half of the year and euro-denominated notes from Poland’s PKO Bank Polski SA during the second half.

Pemex sells bonds

In its new deal, Mexico’s Pemex priced a two-tranche issue of €2.25 billion notes due April 21, 2022 and 2027, a market source said.

The €1 billion 1 7/8% notes due 2022 priced at 99.320 to yield 1.98%, or mid-swaps plus 165 basis points. The notes were talked at a spread of 165 bps to 170 bps.

The €1.25 billion 2¾% notes due 2027 priced at 99.016 to yield 2.848%, or mid-swaps plus 225 bps. Talk was set at 225 bps to 230 bps.

Barclays, BNP Paribas, Deutsche Bank and Santander were the bookrunners for the Regulation S deal.

Formosa prints notes

Taiwan’s Formosa Plastics Group priced $1 billion notes due in 2025 at a spread of 157 bps over Treasuries, a market source said.

The notes were talked at a spread in the 160-bps area.

Bank of China, HSBC, ANZ and Mizuho Securities were the bookrunners for the Regulation S deal.

Other details were not immediately available on Tuesday.

Issuance from Haitong

In another new deal, China’s Haitong International Securities – through indirect wholly owned subsidiary Haitong International Finance Holdings Ltd. – priced $670 million 3½% notes due April 21, 2020 at 98.8910 to yield 3.524%, or Treasuries plus 220 bps, a market source said.

The notes priced at the tight end of talk, set at 220 bps to 225 bps.

Haitong International, Standard Chartered Bank, BESI and CMBI were the bookrunners for the Regulation S deal.

The proceeds will be used to increase share capital and for other general corporate purposes.

Chinese corporate launches issue

China Communications Construction Co. Ltd., an indirect wholly owned offshore subsidiary CCCI Treasure Ltd., launched a $1.1 billion issue of perpetual notes at 3½%, a market source said.

The notes were talked at 3½%.

UBS, HSBC and Morgan Stanley are the bookrunners for the Regulation S deal.

The notes will include a change-of-control put and will be non-callable for five years.

The proceeds will be used for working capital and for general corporate purposes outside China.

The construction company is based in Beijing.

Chinese developer issues notes

Central China Real Estate Ltd. launched a $300 million issue of notes due in January 2021 at 8¾%, a market source said.

BNP Paribas, Deutsche Bank, Morgan Stanley and OCBC are the bookrunners for the Regulation S notes, which are non-callable for three years.

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

The investment holding company is based in Zhengzhou City, China and primarily engages in property development in the Henan Province of China.

FirstRand sets roadshow

South Africa’s FirstRand Bank Ltd. will set out on Friday for a roadshow to market a dollar-denominated issue of notes, a market source said.

BofA Merrill Lynch, BNP Paribas, Rand Merchant Bank and Standard Chartered Bank are the bookrunners for the Regulation S deal.

The roadshow will begin in Frankfurt and Amsterdam and travel to Doha, London, Abu Dhabi and Dubai before concluding on April 22 in Switzerland and Hong Kong.

FirstRand is a lender based in Sandton, South Africa.

Persero to market deal

Indonesia’s PT Pelabuhan Indonesia II (Persero) will depart Wednesday on a roadshow to market a dollar-denominated issue of notes, a market source said.

ANZ, BNP Paribas, Citigroup, Bahana Securities and Danareksa Sekuritas are the bookrunners for the Rule 144A and Regulation S deal.

Persero is a Surabaya, Indonesia-based provider of port service facilities.

Roadshow for Korea Hydro

Korea Hydro & Nuclear Power Co. will set out on Friday for a roadshow to market a possible issue of notes, a market source said.

The company previously announced the mandate of BNP Paribas, Citigroup, Goldman Sachs and HSBC as bookrunners for a roadshow beginning April 7.

Korea Hydro is a Seoul, South Korea-based subsidiary of Korea Electric Power Corp. (Kepco).

China Cinda mandates banks

China Cinda Asset Management Co. Ltd. has mandated arrangers and program dealers for a $3 billion medium-term notes program, a market source said.

BOC International, BofA Merrill Lynch, Credit Suisse, Cinda International Capital, CCB International and Citic Securities are the program arrangers and dealers. UBS, Deutsche Bank, Wing Lung Bank, ABC International, ICBC Asia, Morgan Stanley, Bank of China, Haitong International, DBS Bank, Standard Chartered Bank and China Merchants Securities are program dealers.

The Beijing company provides asset management, consulting, investment, financial and risk management services to individuals and businesses.

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