Ukraine prices $3 billion deal; market eyes new Petrobras notes; Kookmin Bank talks notes

By Rebecca Melvin

New York, Sept. 18 – The emerging primary markets remained ebullient on Monday following strong flow last week.

Among the day’s deals, the Ukraine launched and priced $3 billion of 7 3/8% 14.25-year notes in its first tap of international markets since restructuring in 2015, and at pricing that was at the tight end of revised talk

Proceeds of the new Ukraine notes (expected ratings: /B-/B-) will be used to buyback more expensive near-dated notes due 2019 and 2020. The deal was three times oversubscribed.

Brazil’s Petroleo Brasiliero SA (Petrobras) announced plans to price up to $2 billion of new notes in two tranches, including about $1 billion of seven-year notes that were talked at a yield of 5½% to 6%, and about $1 billion of 10-year notes that were talked in the low 6% range.

The Petrobras notes due January of 2025 and 2028 (expected ratings: (/BB-/BB) are being sold concurrently with two exchange offers and cash offers for five series of existing notes.

Those notes include Petrobras’ 4 7/8% notes due 2020, 5 3/8% notes due 2021, 7 7/8% notes due 2019, 5¾% notes due 2020 and 8 3/8% notes due 2021.

Meanwhile, in secondary market action, Petrobras’ 7 3/8% notes due 2027 traded down more than a point to 109.7 on Monday from 111 at the end of Friday.

Elsewhere Singapore’s Puma Energy Holdings Pte. Ltd. said it plans to price a minimum of $300 million of seven year, non-call three, notes, in tandem with a tender offer for $300 million of existing notes.

The Puma deal is going on the road on Wednesday and that roadshow will wraps up Sept. 28.

China’s KWG Property Holding Ltd. is proposing an international offering of dollar-denominated guaranteed senior fixed-rate notes. Citi, Goldman Sachs, HSBC and Standard Chartered Bank are expected to be bookrunners for the Regulation S offering. Proceeds will be used to refinance existing debt.

KWG Property is a developer based in Guangzhou.

In addition, Kookmin Bank of South Korea set talk for a dollar-denominated benchmark offering of 5.5-year notes (expected ratings: A1/A+) at Treasuries plus 135 basis points.

Citigroup, Commerzbank, ING, JPMorgan, MUFG and Societe General CIB are the joint bookrunners for the Rule 144A and Regulation S offering.

Orders of more than $600 million had already come in for the deal that was expected to price later Monday.

Kookmin Bank is a lender based in Seoul, South Korea.

In the Middle East region, Islamic Development Bank set talk on a dollar-denominated benchmark offering of five-year Sukuk at mid-swaps plus the low 40s basis points, according to a market source.

The Regulation S Sukuk is being issued by IDB Trust Services Ltd. via bookrunners Dubai Islamic Bank, First Abu Dhabi Bank, Gulf International Bank, HSBC, Maybank, Standard Chartered Bank, Natixis and Warba Bank.

The issuer is a Jeddah, Saudi Arabia-based lender.

© 2015 Prospect News.
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