SembCorp starts roadshow; Gazprom circling investors; Inkia Energy prices $450 million

By Paul A. Harris

Portland, Ore., Nov. 9 – Despite weakness in European equities, the tone of emerging markets continued to improve on Thursday, according to a London-based trader focused on Central and Eastern Europe, Middle East and Africa (CEMEA).

Earlier in the week the sector widened on news of geopolitical tensions among Saudi Arabia and some of it Middle Eastern neighbors.

Spreads, which had widened as much as 25 basis points on Tuesday, had come in and were perhaps only 10 bps wider on Thursday, the trader said.

The headline noise did not appear to be impacting the new issue market, the trader said.

SembCorp project financing

In one example of a CEMEA primary market up and running, Emirates SembCorp Water & Power started a roadshow on Thursday for a $400 million offering of senior secured notes due 2035 (A2/A-).

Citigroup and HSBC are the joint global coordinators for the project financing.

Proceeds will be used to help build a desalination plant in Fujairah, an emirate on the east coast of the United Arab Emirates.

Gazprom starts Monday

OAO Gazprom plans to commence meetings with fixed-income investors on Monday ahead of a proposed benchmark euro-denominated Regulation S offering of notes.

Credit Agricole CIB, Deutsche Bank, Gazprombank, UniCredit Bank and VTB Capital are arranging the meetings.

Fibria announces dollar notes

Elsewhere Brazil-based Fibria Celulose SA announced in a prospectus filed on Thursday with the Securities and Exchange Commission that it intends to issue dollar-denominated notes via subsidiary Fibria Overseas Finance Ltd.

BNP Paribas, BofA Merrill Lynch, Citigroup, HSBC, JPMorgan, Mizuho Securities and Scotia are the bookrunners.

The pulp and paper company intends to use the proceeds to refinance debt and for general corporate purposes.

Inkia prices 5 7/8% notes

Inkia Energy Ltd., a wholly owned subsidiary of Singapore-based Kenon Holdings Ltd., announced in a Thursday press release that it has priced $450 million of 5 7/8% 10-year senior notes.

The power generation company plans to use the proceeds to redeem its notes maturing in 2021.

African Development prices

African Development Bank has priced $2 billion issue of 2 1/8% five-year bonds at 99.745.

JP Morgan Securities plc is the stabilization coordinator. Barclays, BNP Paribas, Citigroup and Wells Fargo are stabilization managers.

The issuer is a multilateral development bank based in Abidjan, Ivory Coast.

China Development green bond

China Development Bank plans to issue euro-denominated four-year green bonds.

Deutsche Bank AG London is the stabilization manager.

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