Primary hosts Clisa; roadshows for Videsh, Sekerbank; Celulosa Argentina shelves deal

By Christine Van Dusen

Atlanta, July 14 – Argentina’s Compania Latinoamericana de Infraestructura & Servicios SA (Clisa) sold notes on Thursday as emerging markets assets opened firmly on the news of a new prime minister in the United Kingdom.

“Middle Eastern and Northern African credit is opening firmly once more while Turkey is lagging a bit,” a London-based analyst said.

This came as Turkey’s prime minister recommended normalizing relations with Syria but said the country “wouldn’t change its policy to Syria as long as Syria’s Assad remains in place,” he said.

Turkey also released economic data that showed improvement, with industrial production climbing by 5.6% in May, year-over-year, versus 0.7% in April.

In its new deal, Argentina’s Clisa priced $200 million 9¾% notes due in 2023 via BCP and Santander in a Rule 144A and Regulation S deal.

The notes were talked in the high-9% area.

In other deal-related news, India’s ONGC Videsh Vankorneft Pte. Ltd. – a wholly owned subsidiary of Oil and Natural Gas Corp. Ltd. – began a roadshow on Thursday for an issue of dollar-denominated notes, a market source said.

Citigroup and Standard Chartered Bank are the joint global coordinators and – along with DBS Bank, Mizuho Securities, MUFG and SMBC Nikko – the joint bookrunners and joint lead managers for the Regulation S deal.

The roadshow is being held in Asia and Europe.

Sekerbank sets roadshow

Turkey’s Sekerbank TAS is planning a roadshow to market a possible offering of dollar-denominated notes, a market source said.

The roadshow will begin on July 17 and will take place in Asia, Europe and the Middle East.

Bank ABC, Commerzbank, Emirates NBD Capital, Nomura Securities, Standard Chartered Bank and UniCredit are the bookrunners for the Regulation S deal.

Sekerbank is a lender based in Istanbul.

Celulosa Argentina cancels notes

Celulosa Argentina SA has canceled plans for a $200 million issue of notes due in seven years, a market source said.

Citigroup and Credit Suisse were the bookrunners for the deal, which was talked in the 10% area.

Other details were not immediately available on Thursday.

Proceeds were to be used for debt refinancing, working capital and general corporate purposes.

Celulosa Argentina is the largest integrated pulp and paper manufacturer in Argentina.

Olam draws orders

The new issue of notes from Singapore’s Olam International Ltd. – $500 million 5.35% perpetual notes that priced Wednesday at par to yield 5.35% – was about 3.4-times oversubscribed, according to a press release from the company.

Credit Suisse, DBS and Standard Chartered Bank were the bookrunners for the Regulation S deal.

Fund managers and banks picked up 46%. Asian investors bought 91%.

The proceeds will be used to refinance the issuer's 7% perpetual securities issued in March of 2012.

Olam is a food processing company based in Singapore.

Issuance from Credito Real

On Wednesday Mexico’s Credito Real SAB de CV, Sofom, ENR priced a $625 million issue of 7¼% notes due July 20, 2023 at 99.326, a market source said.

Barclays, Deutsche Bank and Morgan Stanley were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used for general corporate purposes, to fund a tender offer for its 2019 notes and to repay certain indebtedness.

Credito Real is a Mexico City-based consumer financing services company.

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