America Movil prints notes in francs and dollars; Latin American corporates plan more issuance

By Christine Van Dusen

Atlanta, Aug. 31 - Mexico's America Movil SAB de CV was among the few emerging markets issuers to make headlines on Friday as risk appetite perked up a bit on the possibility of further stimulus in the United States, bringing what was a punishing month to a fairly solid close.

"It's a fairly constructive end to August, but overall, I'm very pleased to see the end of it. It's been a painful, illiquid, thin and flaky month," a London-based trader said. "It was fairly active, flow-wise, again today. However, getting out of those trades is another issue entirely."

In the minutes released Tuesday from the Federal Open Market Committee's monetary policy meeting on Aug. 9, officials announced plans to carry the zero interest rate policy into at least 2013 and touched on other methods for promoting growth in the U.S. economy.

"The FOMC's minutes, which hinted at further stimulus at the next policy meeting, provided a boost to EM risk, ending a very poor month on a more positive note," according to a report from RBC Capital Markets.

Against this backdrop, some Latin American issuers took small steps toward the market, including Argentina's Cresud SA Comercial Inmobiliaria Financiera y Agropecuaria, Colombia's Isagen SA and Lima's Banco de Credito del Peru.

In trading on Wednesday, standouts included Dubai Water and Electricity Authority, Qatar's Qtel International, Kuwait's Kipco and Cairo's African Export-Import Bank (Afreximbank).

America Movil prices, plans

In its first of two sales, Mexico-based telecommunications company America Movil sold CHF 270 million 2% notes due Dec. 27, 2017 at 99.776 to yield 2.039%, or mid-swaps plus 86 basis points, a market source said.

Credit Suisse was the bookrunner for the deal, which was talked at the mid-swaps plus 86 bps area.

Then later in the day the company priced $2.75 billion of dollar-denominated senior notes due 2016 and guaranteed by subsidiary Radiomovil Dipsa SA de CV.

The company priced $2 billion of five-year notes at Treasuries plus 158 bps and a $750 million add on to its 2040 notes at Treasuries plus 190 bps.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC were the bookrunners for the deal.

Proceeds will be used for general corporate purposes, capital expenditures and the payment of the purchase price for its acquisition of Telmex.

Cresud on roadshow

Argentina-based agricultural company Cresud is on a roadshow until Sept. 1 for a dollar-denominated offering of notes, a market source said.

The marketing trip for the Regulation S offering began Tuesday and traveled from Buenos Aires to Switzerland. The roadshow ends in Santiago, Chile.

This news follows the company's announcement that it would sell up to $60 million of class VIII fixed-rate notes due 2014 under its $150 million global issuance program.

The subscription period began on Aug. 30 and will expire on Sept. 2, according to a news release

The minimum subscription amount will be $2,000, and the notes will be sold in $1,000 increments thereafter.

Banco Itau BBA International SA - London Branch is the international agent, and Banco Itau Argentina SA and Banco Hipotecario SA are the local agents.

Other offerings on tap

Colombia-based public utility services company Isagen has received governmental approval to issue peso- or dollar-denominated notes before the end of the year, a market source said.

No other details were immediately available on Wednesday.

And Lima, Peru-based lender Banco de Credito del Peru is planning a roadshow for an issue of dollar notes due 2016, a market source said.

The marketing trip for the Rule 144A and Regulation S notes is expected to start Sept. 5 and end Sept. 7.

Bank of America Merrill Lynch and Morgan Stanley are the bookrunners.

"There's some evidence of the new issue machine starting to wake up after its summer slumber," a trader said.

Middle East in focus

In the secondary market, several Middle Eastern names bounced on Wednesday, including Dubai Water and Electricity Authority. The company's 2020 notes were seen up at 102.75 early in the session, a trader said.

Qatar-based Qtel International's 2016s - which closed Tuesday at 100.50 bid, 101 offered - were trading Wednesday at 101 bid, 101.375 offered. Kuwait's Kipco was tighter by 15 bps, making up for some widening during the past month.

And Dubai's 2020 notes were up at 106.75 while Mubadala's 2021s were up at 107, he said.

"Bids are improving on a host of other credits," he said. "Is it month-end window dressing?"

Turkish banks see demand

The main laggard on Wednesday morning was Turkey, which started the day only 5 bps tighter, a trader said.

As the session went on, though, the sovereign started to slowly catch up. By day's end, they were tighter by 14 bps.

And paper from Akbank was "on fire," he said.

"That's up a point with strong retail demand," he said. "Banks' performance was solid today."

Garanti Bankasi AS' 2021s were starting to look cheap as compared to Akbank and Isbank, he said. Better selling was seen for the Garanti notes and Yuksel Insaat AS' 2015 notes.

Meanwhile, bonds from Russia ended August on strong footing.

"The Vimpelcom curve was one of the outperformers, along with Severstal," the trader said.

Afreximbank trades above par

Looking to Africa, Cairo-based Afreximbank saw its recent issue of 5¾% notes due 2016 quoted at 99.55 bid, 99.95 offered early on Wednesday after pricing on July 20 at par.

Commerzbank, HSBC, Mitsubishi UFJ Securities and Standard Bank were the bookrunners for the Regulation S notes.

As the European session neared the close, the notes were trading above par. The low for the month was 99.375, a trader said.

"It's a solid end of the month," he said. "It's quiet elsewhere, although there's been some selling pressure on Tunisia as of late."

August ended on a solid note for South Africa names as well, he said.

"These credits have held in very well throughout August versus their peer group," he said.

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