Bancolombia, Marfrig, MIE, Chian Liansu plan notes; Mubadala in demand; Doha Bank delays

By Christine Van Dusen

Atlanta, April 26 - Though most investors sat it out on Tuesday as a result of the European banking holidays, emerging markets assets had a decent day and several issuers - including Bancolombia SA, Brazil's Marfrig Holdings (Europe) BV and several Chinese corporates - took steps toward the market.

"Market players remain on the sidelines with the bevy of holidays," a London-based trader said. "Activity has been very light. However, the market remains fairly well supported."

The JPMorgan Emerging Markets Bond Index Plus spread tightened by just 1 basis point, to Treasuries plus 268 bps, with Venezuela outperforming after pressure from the recent oil-tax hike and Peru widening by 12 bps on the first voter intention polls.

"The bank holiday frenzy right now is ensuring reduced activity, but there are still a few things going on," a London-based market source said.

Bancolombia, Marfrig eyed

On that list is Colombia-based lender Bancolombia's planned issue of up to $1 billion of bonds.

Also from Latin America, Brazil-based Marfrig Holdings (Europe) - a subsidiary of Sao Paulo-based beef producer Marfrig Alimentos SA - tapped BB Securities, Bradesco BBI, Deutsche Bank, Itau and JPMorgan for a roadshow to market a seven-year issue of dollar-denominated notes, a market source said.

The marketing trip for the Rule 144A and Regulation S offering will begin May 2 and include stops in Los Angeles and Boston.

And Angola plans to issue $500 million of notes in September, a market source said.

Market-watchers were also keeping an eye out for a new issue of benchmark-sized notes due 2021 from Indonesia via Deutsche Bank, JPMorgan and UBS. Some sources speculate the deal could come with a yield in the low 5% area.

Asian issuers get busy

But it was Asia's corporate issuers that took center stage on Tuesday, with several deals moving toward the market.

China-based oil company MIE Holdings Corp. is on a roadshow this week for a planned issue of dollar-denominated senior notes, according to a company filing.

Merrill Lynch and Deutsche Bank are the bookrunners for the Rule 144A and Regulation S transaction.

And China's Chian Liansu Group Holdings Ltd., a manufacturer of plastic pipes and pipe fittings, will set out on a roadshow around April 28 for an issue of senior notes, according to a company filing.

JPMorgan and RBS are the bookrunners for the Rule 144A and Regulation S transaction.

Proceeds will be used for general corporate purposes, for capital expenditures and for refinancing debt.

Fosun, Melco plot deals

Also from China, business conglomerate Fosun International Ltd. is planning a dollar-denominated issue of senior notes, according to a company filing.

Goldman Sachs, Standard Chartered Bank and UBS are the bookrunners for the Rule 144A and Regulation S notes.

Proceeds will be used for general corporate purposes, to repay existing debt and to repay a bridge loan from Standard Chartered Bank.

And China-based casino and resort developer and operator Melco Crown Entertainment Ltd. plans to issue renminbi-denominated notes worth about $350 million, according to a company announcement.

Proceeds from the Regulation S notes will be used to repay debt, for working capital, for general corporate purposes, to fund potential future growth and expansion opportunities - which may include acquisitions - and to repay existing debt and partially pre-fund certain scheduled interest payments.

IDB taps leads

Also on Tuesday, Saudi Arabia-based economic development lender Islamic Development Bank mandated HSBC, Standard Chartered Bank, BNP Paribas and Deutsche Bank for a roadshow starting May 1, a market source said.

No other details were immediately available on Tuesday.

"That will not appeal to a majority of players," a market source said.

Also from the Middle East, Qatar's Doha Bank postponed its planned issue of $500 million bonds via JPMorgan and Morgan Stanley until 2012.

"The market should be mildly supportive," the source said. "However, there's a struggle to find demand on the name."

Mubadala trades up

In trading from the region, Abu Dhabi-based investment vehicle Mubadala Development Co. PJSC is seeing continued interest in its new 2016 notes, which priced April 13 at 98.975 to yield Treasuries plus 180 bps. The notes were seen at 100.20 bid, 100.50 offered on Tuesday.

"The recent Mubadalas have played catch-up, with the cheapness from the loose bonds now pretty much absorbed," a market source said.

And the 2020 notes from Dubai and Dubai Electricity and Water Authority were trading flat at the start of the day and firmed up as the day went on.

"Yields on the front end of DEWA look out of line versus the front end on Dubai," the trader said. "Dubai's 2020s are trading with a 102 handle for the first time since October of last year."

Russian banks see demand

In other trading on Tuesday, Russia's banks opened the day roughly unchanged, with some demand seen for Alfa Bank's 2021 bonds at the start of the day.

"But the activity is light for now," the London trader said. "We are better sellers of Alfa Bank's 2021s and slightly better buyers of (CJSC Tinkoff Credit Systems Bank)."

The Alfa Bank 2021 notes - which priced April 19 at par to yield 7¾% - were seen trading Tuesday at 100.75 bid, 100.90 offered.

"That's doing well," a market source said.

Another recent issuer from Russia, however, was faltering on Tuesday: Steel and mining concern Evraz Group SA, which on April 19 priced $850 million notes due 2018 at par to yield 6¾%.

"Evraz is struggling down at reoffer," a source said.

Turkey firms

Turkey started the session a touch firmer but still saw light activity ahead of the Federal Open Market Committee meeting on Wednesday, the trader said.

And South Africa, which traded well last week, saw some investors take interest in its quasi-sovereign names.

"Thin markets will remain this week and liquidity is not great," the trader said. "We're not expecting much from the next two trading sessions, which leads us into May.

"Amazingly a third of the year is almost over, and despite the obvious negative market events, the tremendous political upheaval in the region and the ongoing global imbalances, Middle East and North African markets remain, for the most part, well supported."

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