Primary sees deals from Times Property, DBS Bank, Klabin; Cofide, Colbun, Odebrecht trade

By Christine Van Dusen

Atlanta, July 9 – China’s Times Property Holdings Ltd., Singapore’s DBS Bank Ltd. and Brazil’s Klabin SA priced notes on Wednesday as most emerging markets bonds saw wider spreads and steady but light volumes.

This came against the backdrop of continuing tension in Ukraine, where the defense minister reportedly said there would be no more unilateral ceasefires and no further negotiations until the rebels put down their weapons.

“Fighting continues unabated,” a London-based analyst said.

Looking to Latin America, the new two-tranche issue of notes due in 2019 and 2029 from Peru’s Corporacion Financiera de Desarrollo SA (Cofide) received attention in the secondary market, a New York-based trader said.

The deal included $300 million 3¼% notes due 2019 that priced at 99.785 to yield Treasuries plus 160 basis points and $300 million 5¼% notes due in 2029 that priced at 99.866 to yield Treasuries plus 170 bps.

Citigroup, Morgan Stanley and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.

The recent notes from Chile’s Colbun SA – 4½% notes due 2024 that priced at 98.615 to yield 4 5/8% or Treasuries plus 205 bps – closed Wednesday at 99¾ to par, he said.

Citigroup, JPMorgan and Scotiabank Capital were the bookrunners for the Rule 144A and Regulation S deal.

And Brazil-based Odebrecht SA’s 2029 bonds remained weak, with mostly selling. The notes closed at 98¾ to 99, he said.

In deal-related news, China’s Huarong Finance Co. Ltd. and China’s Emperor International Holdings Ltd. set talk for new notes.

Times Property prices bonds

In its new deal, China’s Times Property priced RMB 900 million 10 3/8% notes due July 16, 2017 at par to yield 10 3/8%, a syndicate source said.

The notes priced at the tight end of talk, set at 10 3/8% to 10½%.

UBS AG, Hong Kong Branch, Haitong International Securities Co. Ltd., BOCI Asia Ltd. and BNP Paribas, Hong Kong Branch were the bookrunners for the Regulation S deal.

The proceeds will be used to refinance some of the company’s debt.

The property developer of mid-market to high-end residential properties is based in Guangzhou, China.

DBS Bank does deal

Singapore’s DBS Bank priced a two-part $1.25 billion issue of fixed- and floating-rate notes due July 16, 2019, a syndicate source said.

The deal included $750 million 2.246% notes that priced at par to yield 2.246% and $500 million floaters that priced at par to yield Libor plus 50 bps.

DBS, Citigroup, Deutsche Bank and Goldman Sachs were the bookrunners for the Rule 144A and Regulation S deal.

Deal from Klabin

Brazil-based paper products company Klabin sold $500 million 5¼% notes due July 16, 2024 at par to yield 5¼%, or Treasuries plus 269.1 bps, a market source said.

The notes were initially talked in the mid-5% area.

BB Securities, Bradesco BBI, HSBC, Itau BBA and Morgan Stanley were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used for general corporate purposes.

Transelec launches

Also on Wednesday, Chile’s Transelec SA launched a $375 million issue of notes due in January of 2025 at a spread of 178 bps over Treasuries, a market source said.

JPMorgan, Scotiabank Capital, Citigroup and Mitsubishi UFJ Securities are the bookrunners for the Rule 144A and Regulation S deal.

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

Transelec is a Santiago, Chile-based electricity transmission company.

Huarong sets talk

China’s Huarong Finance set talk for a two-tranche issue of dollar-denominated and benchmark-sized notes due in three and five years, a market source said.

The three-year notes were talked at a spread of Treasuries plus 215 bps to 220 bps.

The five-year notes were talked at a spread of Treasuries plus 235 bps to 240 bps.

Credit Suisse, Standard Chartered Bank, Wing Lung Bank and ICBC (Asia) are the bookrunners for the Regulation S deal.

Emperor gives guidance

China’s Emperor International Holdings set talk at 5% for its upcoming issue of Hong Kong dollar-denominated notes due in three years, a market source said.

Emperor Securities, Guotai Junan Securities, ICBC and Bank Sinopac are the bookrunners for the Regulation S-registered marketing trip.

The proceeds will be used for general corporate purposes.

Helios draws orders

The final book for Helios Towers Nigeria Ltd.’s new $250 million issue of 8 3/8% notes due July 15, 2019 was more than $650 million, a market source said.

The notes priced at par to yield 8 3/8% via BofA Merrill Lynch in a Regulation S deal.

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

The issuer is a telecom tower company in Nigeria.

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