Deals from Celulosa Arauco, Unifin, Promsvyazbank; Caixa gives guidance; Russian CDS widen

By Christine Van Dusen

Atlanta, July 15 – Chile’s Celulosa Arauco y Constitucion SA, Mexico’s Unifin Financiera SAPI de CV and Russia’s Promsvyazbank printed notes on Tuesday as tension between Russia and Ukraine pushed the former’s credit default swap spreads a touch wider.

“Yesterday saw reports that a Ukrainian air force plane was shot down, with Kiev placing the blame on the Russians,” a London-based analyst said.

So Russia’s CDS moved out 1 basis point to 2 bps, she said.

The conflict in Israel also weighed on investors’ minds on Tuesday, according to a report from Commerzbank Research.

“The market situation is turning risky, with stretched asset prices and ultra-strong currency against a backdrop of an escalating military situation and the prospect of a ground offensive in the Gaza strip,” the report said.

Also on Tuesday, bonds from Serbia widened as much as 20 bps on the news that the finance minister had resigned.

“Elsewhere in [emerging markets], it’s quiet and relatively unchanged,” the analyst said.

In its new deal, Chilean pulp and forestry company Celulosa Arauco priced $500 million 4½% notes due Aug. 1, 2024 at 98.863 to yield Treasuries plus 210 bps, a market source said.

JPMorgan, Scotiabank, Deutsche Bank and Santander were the bookrunners for the Rule 144A and Regulation S transaction.

The proceeds will be used for refinancing and general corporate purposes.

And Mexican financial institution Unifin sold $400 million 6¼% notes due July 22, 2019 at 99.472 to yield 6 3/8%, a market source said.

Citigroup, Credit Suisse and Scotia were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used to repay short-term indebtedness and for general corporate purposes.

Promsvyazbank prints bonds

In another new deal, Russia’s Promsvyazbank sold $300 million 10½% notes due July 30, 2021 at par to yield 10½%, a market source said.

Goldman Sachs, ING Bank, Promsvyazbank and UBS were the bookrunners.

Caixa sets talk

Also on Tuesday, Brazil’s Caixa Economica Federal set talk in the low- to mid-7% area for its upcoming dollar-denominated issue of benchmark-sized notes due in 10 years (expected ratings: Ba3/BB+/), a market source said.

BB Securities, BofA Merrill Lynch, Bradesco BBI, BTG Pactual, Deutsche Bank Securities and HSBC are the bookrunners for the Rule 144A and Regulation S deal.

Caixa Economica Federal is a Brasilia-based lender.

Kookmin oversubscribed

The final book for South Korea-based KB Kookmin Bank’s recent issue of $500 million 1 5/8% notes due 2017 that priced at 99.718 was $2.2 billion, a market source said.

About 52% of the orders came from the United States, 30% from Europe and 18% from Asia.

Fund managers and insurers picked up 71%, banks 18%, central banks and agencies 10% and others 1%.

The notes came to the market at a yield of 3.805%, or Treasuries plus 208 bps, via BNP Paribas, JPMorgan, ING, RBS and UBS in a Regulation S deal.

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