Deals from Kexim, CAF; Lat-Am bonds widen; Russian bonds decline; Ecobank Nigeria sets talk

By Christine Van Dusen

Atlanta, Aug. 5 – Korea Export-Import Bank and Venezuela’s Corporacion Andina de Fomento (CAF) sold notes on Tuesday and spread-based credits from Latin America moved wider as Israel pulled troops from Gaza.

Russia and Ukraine remained in focus, with Russian sovereign bonds dropping as much as half a point so far this week.

“The mood in the market remains sour due to recent corporate developments and the continuing Russian military buildup along the border,” said Svitlana Rusakova of Dragon Capital. “Corporates and quasi-sovereigns were mostly a point lower, with buying appetite low at the moment.”

From Latin America, Mexico’s Cemex SAB de CV – which has seen its bonds take a hit in recent weeks – managed to hold on to some of the small gains realized on Monday, a New York-based trader aid.

Sellers of bonds from the region outpaced buyers, he said.

The recent issue of 9½% notes due 2019 that Chile’s Masisa SA priced at par traded Tuesday at about 108 bid, he said.

Deutsche Bank, Itau BBA, JPMorgan and Scotiabank were the bookrunners for the Rule 144A and Regulation S deal.

And Brazil-based Odebrecht SA’s curve suffered during the session, he said, as investors turned complacent in the face of a lack of new issuance.

Also on Tuesday, Ecobank Nigeria Ltd. set initial talk in the high-9% area for its upcoming issue of about $300 million notes due in seven years (/B+/), a market source said.

Deutsche Bank and Standard Chartered Bank are the bookrunners for the deal.

Kexim sells bonds

In its new deal, Korea’s Kexim priced a two-tranche issue of $1 billion notes due 2019 and 2026, a market source said.

The $500 million 2 3/8% five-year notes priced at 99.85 to yield 2.407%, or Treasuries plus 72.5 basis points, following talk in the 75 bps area.

The $500 million 3¼% 12-year notes priced at 99.882 to yield 3.364%, or Treasuries plus 85 bps, following talk in the 87.5 bps area.

ANZ, BofA Merrill Lynch, BNP Paribas, HSBC, Citigroup and Standard Chartered Bank were the bookrunners for the Securities and Exchange Commission-registered deal.

Issuance from CAF

Venezuela’s CAF priced a $1 billion issue of 1½% notes due Aug. 8, 2017 at 99.93 to yield 1.524%, or Treasuries plus 60 bps, a market source said.

BofA Merrill Lynch, Deutsche Bank and HSBC were the bookrunners for the Securities and Exchange Commission-registered deal.

The proceeds will be used for general corporate purposes, including funding of lending operations, according to a company filing.

CAF is a lender based in Caracas, Venezuela.

Guidance from Chinese bank

China Merchants Bank Co. Ltd. set talk in the Treasuries plus 165 bps area for its upcoming issue of up to $500 million notes due in five years, a market source said.

The notes will be issued by subsidiary Airvessel Finance Holding.

ANZ, HSBC, Morgan Stanley, UBS, CMB International Capital, Credit Suisse and Wing Lung Bank are the bookrunners for the Regulation S deal.

The issuer is based in Shenzhen, China.

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