Emerging Markets: Panama, Israel price; Prosus brings dollar, euro tranches; CEE in focus

By Rebecca Melvin

Concord, N.H., Jan. 14 – The Republic of Panama and the State of Israel represented emerging markets sovereign issuers in the international bond market this past week with dollar and euro-denominated offerings, respectively.

Among significant deals in the corporate space, Prosus NV, the Amsterdam-based international internet assets division of Cape Town, South Africa-based Naspers Ltd., priced a total of six tranches in the international bond market this past week, three in dollars and three in euros.

Emerging markets-focused United Group BV, an operator in Southeast Europe of telecommunication platforms and media, priced €980 million of senior secured notes in two parts (expected B2/confirmed B) on Thursday; CTP NV, a real estate concern doing business in Central and Eastern Europe, priced €700 million senior notes due in four parts; and NEPI Rockcastle plc, the owner and operator of commercial real estate in Central and Eastern Europe, priced €500 million 2% eight-year green notes to yield 2.177%, or 195 basis points over mid-swaps.

Meanwhile in Asia, flagship carrier Singapore Airlines Ltd. priced $600 million of 3 3/8% notes due 2029 this past week.

Panama prices dual tranches

Panama priced a combined $2.5 billion of global bonds due 2033 and 2063 (Baa2/BBB/BBB-) on Tuesday.

The $1 billion tranche of 3.298% bonds due Jan. 19, 2033 priced at par to yield 155 bps over Treasuries. That was tight to talk in the Treasuries plus 185 bps area.

The notes are callable for a make-whole premium of Treasuries plus 25 bps prior to Oct. 19, 2032, when they are callable at par.

The $1.5 billion of 4½% bonds due Jan. 19, 2063 priced at 99.375 to yield 4.534%, or a spread of 245 bps over Treasuries. That was tight to talk in the 270 bps area.

Panama will repay the principal on the 2063 bonds in three equal parts commencing on Jan. 19, 2061. They are callable for a make-whole premium of Treasuries plus 40 bps prior to a six-month par call on July 19, 2063.

Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are bookrunners for the registered deal.

Bank of New York Mellon is the fiscal agent.

Legal advisers for Panama are Arnold & Porter Kaye Scholer LLP (U.S. law) and Dr. Rigoberto Gonzalez Montenegro for Panamanian law.

Sullivan & Cromwell LLP are advising the bookrunners for U.S. law, and Arias, Fabrega & Fabrega is advising on Panamanian matters.

Listing will be on the Luxembourg Stock Exchange.

Proceeds will be used for general budgetary purposes.

Israel prices 10-year note

Israel priced €1.5 billion of 10-year senior notes at 99.374, according to a notice on Wednesday.

The notes priced with an interest rate of 5/8%, according to a media report.

J.P. Morgan Securities plc, Citigroup, Barclays and Goldman Sachs International are bookrunners of the fixed-rate offering, which was sold under Regulation S.

The notes are expected to be listed on the London Stock Exchange.

Prosus brings multi-tranches

Prosus priced $3.25 billion of senior notes in five-, 10- and 30-year tranches (Baa3/BBB) and €1.75 billion of notes in five, eight and 12-year tranches, according to a market source this past week.

The Rule 144A and Regulation S dollar offering included $1 billion 3.257% five-year notes that priced at par to yield a spread over Treasuries of 175 bps. The final terms were tight to initial price talk for a spread in the 215 bps area over Treasuries.

A $1 billion tranche of 4.193% 10-year notes priced at par to yield Treasuries plus 245 bps. That pricing was tight to initial talk in the 260 bps area over Treasuries.

And a $1.25 billion tranche of 4.987% 30-year notes priced at par to yield Treasuries plus 290 bps. This tranche had been expected to yield in the 315 bps over Treasuries area.

There will be an optional make-whole redemption and then a par call. The par call dates will be Dec. 19, 2026 (five-year notes), Oct. 19, 2031 (10-year notes) and July 19, 2051 (30-year notes). The make-whole premiums are Treasuries plus 30 bps, 40 bps and 45 bps, respectively.

Any change of control will require the issuer to make an offer to buy the notes at 101.

Joint global coordinators and bookrunners are BNP Paribas, Citigroup, Deutsche Bank and Goldman Sachs Bank Europe SE. For the 10-year notes, Citi is handling billing and delivery. Billing and delivery is being done by Deutsche Bank for the five-year and 30-year tranches.

Proceeds will be used for general corporate purposes, including acquisitions and investments.

Listing will be on Euronext Dublin.

The Rule 144A and Regulation S euro offerings for which combined order books were seen at €6.75 billion, included €500 million 1.207% notes due Jan. 19, 2026 at par to yield mid-swaps plus 120 bps. The final spread was tight to initial talk for a spread in the 155 bps area over mid-swaps.

The €600 million tranche of 2.085% notes due Jan. 19, 2030 priced at par for yield spread set at mid-swaps plus 183 bps. That was tight to initial talk in the 205 bps area over mid-swaps.

Pricing for the €650 million tranche of 2.778% notes due Jan. 19, 2034 priced at par, and the spread was set at 233 bps over mid-swaps. That was tight to talk in the 255 bps over mid-swaps area.

The notes have an optional make-whole redemption and then a par call. The par call dates will be Dec. 19, 2025 (four-year notes), Oct. 19, 2029 (eight-year notes) and Oct. 19, 2033 (12-year notes).

Any change of control will require the issuer to make an offer to buy the notes at 101.

Joint global coordinators and bookrunners are BNP Paribas, Citigroup, Deutsche Bank and Goldman Sachs Bank Europe SE. Citi was billing and delivery for the four-year and 12-year notes, and Deutsche Bank was billing and delivery for the eight-year notes.

Proceeds will be used for general corporate purposes, including acquisitions and investments.

Listing will be on Euronext Dublin.

United Group sells euro notes

United Group priced €980 million of senior secured notes in two parts (expected: B2/confirmed B) on Thursday, according to a press release.

The company sold €500 million of 5¼% senior secured notes due 2030 and €480 million of floating-rate senior secured notes due 2029.

Both notes priced at par.

As previously reported, the company shifted €80 million of proceeds to the floating-rate tranche from the fixed-rate tranche.

The fixed-rate notes launched at 5¼%, tight to talk in the 5 3/8% area (initial guidance was in the 5% area). Those notes become callable after three years at par plus 50% of the coupon and feature a special call provision that allows the issuer to redeem 10% of the notes annually at 103 during the non-call period.

The floating-rate notes launched with a 487.5 bps spread to Euribor at par. There is no Euribor floor. The tranche size increased from €400 million. The spread at launch was tight to talk in the Euribor plus 500 bps area (initial guidance was in the high 4% area). The floating-rate notes are being sold with one year of call protection.

Global coordinator and joint bookrunner JPMorgan is handling billing and delivery. Citigroup, Credit Agricole CIB, Credit Suisse, KKR and Morgan Stanley are also joint bookrunners.

The Amsterdam-based telecom plans to use the proceeds from the Rule 144A and Regulation S deal plus cash on hand to repay the bridge facility drawn to pay for the acquisition of Wind Hellas.

United Group operates in Southeast Europe, where it provides telecommunication platforms and media.

Singapore Airlines sells notes

Singapore Airlines priced $600 million of 3 3/8% notes due 2029 at 99.273, according to a notice on Thursday.

The series 010 notes will be issued under the airline’s S$10 billion multicurrency medium-term note program.

The Regulation S notes will be callable at par plus interest starting Nov. 19, 2028.

Citigroup Global Markets Singapore Pte., Ltd. and DBS Bank Ltd. are the joint global coordinators for the offering, also serving as joint lead managers with Standard Chartered Bank (Singapore) Ltd. and BNP Paribas.

Proceeds from the issue will be used for aircraft purchases, aircraft-related payments and general corporate or working capital purposes, including refinancing existing debt.

The company will make an application to list the notes on the Singapore Exchange.

The flag carrier of Singapore plans to use proceeds for general corporate or working capital purposes, including the refinancing of existing borrowings.

Middle East opens

EIG Pearl Holdings Sarl priced $2.5 billion of senior secured notes in two tranches (A1//A) on Thursday, according to a market source on Friday.

Pricing for both tranches, which represent the issuer’s inaugural international bond offering, came on top of initial talk.

The $1.25 billion 3.545% notes due Aug. 31, 2036 priced at par with a spread over U.S. Treasuries of 185 bps. They had been talked with a 185 bps area spread.

The $1.25 billion 4.387% notes due Nov. 30, 2046 priced at par for a spread over Treasuries of 235 bps. They had been talked in the 235 bps area over Treasuries.

The weighted average life of the amortizing bonds is 10.5 years and 23.7 years, respectively.

Proceeds of the Rule 144A and Regulation S notes will be used to partly refinance a $10.8 billion bridge facility used as part of the issuer’s acquisition of a 49% stake in Aramco Oil Pipelines Co. (AssetCo).

The issuer owns 49% of the issued share capital of AssetCo, and Saudi Arabian Oil Co. (Aramco) owns the remaining 51%. In June 2021, AssetCo and Aramco entered into a 25-year lease and leaseback arrangement regarding Aramco’s network of current and future pipelines used to transport stabilized crude oil within the Kingdom, under which AssetCo received rights to a quarterly tariff payable by Aramco for stabilized crude oil flows, backed by minimum volume commitments. Aramco retains sole control and management of, and is solely responsible for operating and maintaining, the pipelines.

BNP Paribas, Citigroup, First Abu Dhabi Bank, HSBC, JPMorgan (billing and delivery), Mizuho, MUFG, SMBC Nikko, Abu Dhabi Commercial Bank, Bank of China, Credit Agricole CIB and Standard Chartered Bank are joint bookrunners of the notes.

Agricultural Bank of China, BofA Securities, ICBC, IMI-Intesa Sanpaolo, Natixis, Riyad Capital and Societe Generale are co-lead managers.

The notes are expected to be listed on the London Stock Exchange.

EIG Pearl is indirectly owned 89.45% by an aggregator vehicle managed by EIG Management Co. LLC and its affiliates and 10.55% by a wholly owned subsidiary of Mubadala Investment Co. PJSC.

The EIG aggregator includes institutional investors from the United States, China and Saudi Arabia, Korea and other countries.

And Doha Bank QPSC’s special purpose entity, Doha Finance Ltd., priced CHF 175 million 0.465% senior notes due Jan. 24, 2022 (Baa1//A), according to a market source.

The notes priced under the issuer’s $2 billion medium-term note program at par to yield mid-swaps plus 93 bps.

Credit Suisse and Deutsche Bank AG London Branch, acting through Deutsche Bank AG Zurich Branch, are joint lead managers and bookrunners of the transaction.

The bank is based in Doha, Qatar.

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