China Metallurgical, CapitaLand sell notes; Ukraine crisis persists; Lat-Am in holding pattern

By Christine Van Dusen

Atlanta, Aug. 21 – China Metallurgical Group Corp. and Singapore’s CapitaLand Ltd. sold notes on Thursday as paper from Ukraine continued to decline on news that Russian trucks will be searched at Ukrainian checkpoints.

A convoy of Russian trucks has been held in a rebel-controlled city at the Ukraine border while fighting continues in the area. In response, sovereign bonds from Ukraine have been dipping so far this week, according to a report from Eavex Capital.

The 2023s have declined by about 1 percentage point, trading at 90.70 bid, 91.70 offered.

Among corporates, Metinvest BV saw its 2015s drop by as much as 4 percentage points to 79 bid, 81 offered while its 2018s moved down 7½ points to 68 bid, 70 offered.

For bonds from Latin America, Thursday’s session was largely uneventful, a New York-based trader said, with sparse volumes as spread-based credits remained firm.

In deal-related news on Thursday, China-based industrial gas producer Yingde Gases Group Co. Ltd. set talk at 7.4% to 7½% for a $250 million issue of 5½-year notes, a market source said.

Deutsche Bank AG, Singapore Branch and HSBC Ltd. are the bookrunners for the Rule 144A and Regulation S deal.

The notes will be issued by subsidiary Yingde Gases Investment Ltd. and guaranteed by Yingde Gases Group and its subsidiaries.

Of the proceeds, the company plans to use 40% for refinancing some existing onshore debt, 40% for capital expenditures and 20% for working capital and general corporate purposes.

And market sources were whispering about a possible issue of Singapore dollar-denominated notes from Indonesian conglomerate PT Asuransi Sinar Mas via OCBC and UBS.

Chile outperforms

Mexico’s Cemex SAB de CV and banks from Colombia were in a holding pattern, and high-grade credits were difficult to source, the trader said.

Corporates from Chile outperformed, with high-grade names firming and paper difficult to find.

High-grade names from Brazil continued to tighten on light volumes, he said.

CapitaLand prints bonds

Singapore’s CapitaLand sold S$500 million 3.8% notes due Aug. 28, 2024 at par to yield 3.8%, according to a company announcement.

The notes, issued by wholly owned subsidiary CapitaLand Treasury Ltd., were talked at 3.8% to 3.85%.

DBS Bank and HSBC were the bookrunners for the Regulation S deal.

The issuer is a Singapore-based property developer.

China Metallurgical sells notes

China Metallurgical Group sold $500 million 2½% notes due in 2017 at a yield of 2.697%, or Treasuries plus 175 basis points, a market source said.

The notes were talked at a spread in the 180 bps area.

ABC International, BOC International, DBS Bank, Morgan Stanley and Agricultural Bank of China were the bookrunners for the Regulation S deal.

The proceeds will be used for working capital purposes and overseas business operations, repayment of foreign currency loans and other indebtedness.

The bonds were issued by indirect subsidiary MCC Holding (Hong Kong) Corp. Ltd.

The Beijing-based metallurgical engineering contractor designs and constructs iron and steel plants.

© 2015 Prospect News.
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