Turk Eximbank, Chile’s ENAP price new dollar benchmarks; Klabin, Coca-Cola Icecek on tap

By Rebecca Melvin

New York, Sept. 11 – Emerging markets eyed two deals that were pricing during Monday’s session. Turkey’s state-owned export-import bank, Turkiye Ihracat Kredi Bankasi AS, priced $500 million of five-year notes to yield mid-swaps plus 262.5 basis points, and Chile’s Empresa Nacional del Petroleo priced $600 million of notes to yield Treasuries plus 195 bps, according to market sources.

Price guidance for both deals was tightened during marketing. The yield spread for Turk Eximbank was tightened from initial talk of mid-swaps plus 287.5 bps, and ENAP’s yield spread was tightened from an initially talked Treasuries plus 240 bps.

On tap for Tuesday’s business are dollar-denominated deals from Klabin SA and Coca-Cola Icecek AS. The offering of notes from Brazil’s Klabin and Turkey’s Coca-Cola’s benchmark note offering (expected ratings: Baa3//BBB) were pricing following investor meetings that wrapped up on Monday.

The Istanbul-based bottler mandated BNP Paribas, Citi, HSBC, JPMorgan and MUFG as the bookrunners for the senior unsecured notes, which will be sold under Rule 144A and Regulation S. And the banks involved in the Klabin deal are Bank of America, Santander Investment Securities, Itau BBA, Citigroup and Morgan Stanley.

Klabin is a Sao Paulo-based pulp, paper and paper products company.

Bahrain may also price a previously announced deal on Tuesday, a market source said.

For Wednesday, Mexico City Airport plans to price two tranches of dollar-denominated senior secured green notes for up to $4 billion of financing.

Last year Mexico City Airport priced a $2 billion deal in two tranches, and it is “looking to do the remainder now,” the source said. The airport has a borrowing plan of up to $6 billion.

Citigroup, HSBC and JPMorgan are global coordinators and bookrunners of the new notes, and Santander and BBVA are also bookrunners.

Also on the calendar are Latin American focused deals from Adecoagro SA, Banistmo, Geopark and Millicom International Cellular SA.

Millicom plans to offer up to $200 million-equivalent of Colombian peso-denominated senior notes with a tenor of up to seven years.

The secondary market was active. The secondary market in the Central & Eastern Europe, Middle East and Africa region was “moderately busy,” a London-based trader said, with prices adjusting downward in tandem with a move lower in U.S. Treasuries, but spreads were holding in.

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