Helios Towers, VTB, Ivory Coast set roadshows; holidays, global picture keep EM trading quiet

By Christine Van Dusen

Atlanta, June 30 – Emerging markets issuers planned roadshows on a mostly quiet Monday as investors stayed wary of bonds from the Middle East and watched Ukraine to see whether the ceasefire would continue.

The ceasefire was set to expire on Monday night, but European leaders had asked for it to be extended. The shaky peace was tested when a cameraman from Russia’s state-controlled television station was killed during an attack by Ukrainian forces.

Meanwhile, in the Middle East, Russian experts were reportedly helping the Iraqi army add new warplanes to the fight against Sunni extremists.

All of this – as well as a Tuesday holiday in Hong Kong, a Friday holiday in the United States, and the start of Ramadan – made for a quiet trading day on Monday, a London-based analyst said.

“We close the month on a little bit of a tricky wave, with sentiment and moves a real mixed bag,” a London-based trader said. “The backdrop of the very uncertain situation in Iraq – and also a poor tone in the Dubai stock market – sees some spreads losing their luster into month-end.”

Some bonds from International Petroleum Investment Co. were squeezed on Monday while notes from Kuwait and its corporates tended to lag, he said.

“There remains a large redemption pipeline this year, and the supply definitely ticked up over the past month,” he said. “However, with the onset of Ramadan and summer holidays about to hit full swing I’d expect supply to slow until mid-August.”

Lat-Am in focus

Looking to Latin America, most spreads remained flat to Friday’s close, a New York-based trader said.

Bonds from such names as Colombia’s Bancolombia and Grupo Aval Acciones y Valores SA stayed firm after recovering from sluggish moves in late May and early June, he said.

Helios schedules roadshow

Helios Towers Nigeria Ltd. will set out on Tuesday for a roadshow to market a dollar-denominated issue of notes, a market source said.

BofA Merrill Lynch is the sole bookrunner for the Regulation S deal.

The issuer is a telecom tower company in Nigeria.

VTB roadshow ahead

Russia’s VTB Bank OJSC has mandated Credit Suisse, UBS and VTB Capital as bookrunners for a Swiss franc-denominated issue of notes that will be marketed during a roadshow, a market source said.

The roadshow will begin on Tuesday.

A Regulation S offering is expected to follow.

VTB is a Moscow-based lender.

Ivory Coast resumes plans

Ivory Coast is moving ahead with its planned issue of dollar-denominated notes, setting a roadshow for July 9 to 14, a market source said.

No other details were immediately available on Monday.

The sovereign previously mandated Citigroup, BNP Paribas and Deutsche Bank for a dollar-denominated offering of notes due in 10 years, a market source said.

Puma Energy plans add-on

Puma Energy plans to price a $250 million add-on to its 6¾% senior notes due Feb. 1, 2021 this week, according to an informed source.

The deal size will not grow.

Goldman Sachs International and SG CIB are joint bookrunners for the Rule 144A and Regulation S offer.

The notes become callable after Feb. 1, 2017 at 103.375.

The issuing entity is special purpose vehicle Puma International Financing SA.

The Singapore-based midstream and downstream oil group plans to use the proceeds to fund its ongoing investment program and for general corporate purposes.

The original $750 million issue priced at par on Jan. 28, 2013. The Rule 144A add-on notes will be immediately fungible with original notes. The Regulation S add-on notes will become fungible 40 days after the settlement.

Paul A. Harris contributed to this article.

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