BNDES details sale; China National Offshore, Turkey plan investor meetings

By Aleesia Forni

Virginia Beach, Va., Sept. 20 - Friday's emerging markets bond space saw Brazil's Banco Nacional do Desenvolvimento Economico e Social SA (BNDES) detail its recent offering of notes, while potential issuers China National Offshore Oil Corp. (Cnooc) and Turkey announced roadshows.

BNDES priced a $2.5 billion two-part offering of notes, according to an informed source.

The bank sold $1.25 billion of 3 3/8% notes due 2016 at Treasuries plus 275 basis points and $1.25 billion of 5¾% notes due 2023 at Treasuries plus 300 bps.

The session also saw Cnooc kick off its roadshow on Friday, according to an informed source.

The company is expected to price a Rule 144A and Regulation S offering following completion of the roadshow.

In other forward calendar news, Turkey announced plans to host a roadshow beginning on Sept. 23 and running through Oct. 1.

HSBC, QInvest and Standard Chartered are arranging the meetings, which is expected to result in a dollar-denominated offering.

BNDES new issue

BNDES detailed terms of its $2.25 billion sale of senior notes, according to a source away from the trade.

The deal included $1.25 billion 3 3/8% notes due 2016 priced with a spread of Treasuries plus 275 bps, or 99.774 to yield 3.455%.

The second tranche consisted of $1.25 billion 5¾% notes due 2023 that sold at Treasuries plus 300 bps. Pricing was at 99.887 to yield 5.765%.

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

The proceeds will be used to finance the company's lending program.

BNDES is an economic and social development bank based in Rio de Janeiro.

Cnooc roadshow

Also on Friday, Cnooc began a roadshow ahead of a possible Rule 144A and Regulation S offering, according to an informed source.

Bank of China, JPMorgan, UBS and Goldman Sachs are arranging the meetings.

Cnooc is a Hong Kong-based oil and gas exploration and production company.

Turkey plans investor meetings

Elsewhere, Turkey is planning to hold a roadshow beginning Sept. 23 via HSBC, QInvest and Standard Chartered, according to a press release on the sovereign's Treasury website.

The investor meetings will be held in the Middle East and Asia and run through Oct. 1.

A dollar-denominated sukuk is expected to follow.

OGX slips on CFO exit

OGX Petroleo & Gas Participacoes SA's 8½% notes due 2018 were coming in intraday after news came out stating the company's chief financial officer had been dismissed.

A trader said the debt started the day at 20½ bid, but fell to 19¾ post-news.

Roberto Monteiro was fired from his position, according to a regulatory filing made on Friday. The Brazilian oil company's board of directors approved the dismissal, but did not give a reason for the decision.

Monteiro had previously worked at sister company OSX Brazil SA.

OGX is currently seeking more cash from creditors as the company struggles to stay afloat. Adding to its troubles was word Thursday that Diamond Offshore Drilling Inc. was considering ending its contract with OGX, given that the company is behind on payments.

As of June 30, OGX owed Diamond Drilling $22.7 million.

In other emerging markets names, Petróleos de Venezuela SA saw its 8½% notes due 2017 drop almost a point to end at 96 5/8, while the 9¾% notes due 2035 slipped just a touch to 90.

The 5¼% notes due 2017 declined by nearly 1½ points to 84 1/8.

Chile's SMU SA meantime saw its 7¾% notes due 2020 rising 1½ points, closing around 651/4.

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