Roadshow announcements abound for EM; Lat-Am moves higher, tighter; Turkey, Qatar trade

By Christine Van Dusen

Atlanta, June 2 – Numerous emerging markets issuers – including China’s Tianjin Infrastructure Construction & Investment (Group) Co. Ltd., India’s Samvardhana Motherson Automotive Systems Group BV, Mexico’s Fibra Uno and Brazil’s Eldorado Brasil Celulose SA – on Thursday were on or planning roadshows as Latin America bonds moved higher and spreads narrowed on stable oil prices, higher U.S. Treasuries and firm equities.

“Cash prices relentlessly bid,” a New York-based trader said. “Early-morning it seemed like the market was in for a bit of a sell-off but oil and equities recovered, which had EM bonds reverse course as well.”

Five-year credit default swaps spreads for Brazil ended the session at 351 basis points from 360 bps, while Mexico’s moved to 167 bps from 170 bps.

“Latin American high-yield finishes mixed on the day, with Argentina giving back much of the gains from yesterday, whereas Venezuela jumps on positive news headlines regarding PDVSA debt servicing,” he said.

PDVSA’s 2017s moved higher, to 68 from 64.75, on the news. Venezuela’s 2027s closed at 43.50 from 42.25. And Argentina’s Bonar 2024s were mostly unchanged at 112, while the 2026s moved to 104.75 from 105.75.

“Flows today saw better buying of all EM low-beta names,” he said.

In other trading, the new issue of 4.251% notes due 2021 from Turkey that priced at par traded at 100.45 bid, 100.55 offered.

And Qatar’s 2 3/8% 2021s continued to trade well, a London-based trader said.

Oman releases details

Oman released more details on its upcoming issue of dollar-denominated and benchmark-sized notes, a market source said.

Citigroup, JPMorgan, MUFG Securities, National Bank of Abu Dhabi and Natixis are the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used for general budgetary purposes.

The roadshow started on Thursday in Abu Dhabi and Dubai and will travel to London and Boston before concluding on June 7 in New York and Los Angeles.

Tianjin company on roadshow

China’s Tianjin Infrastructure Construction & Investment is holding investor meetings in Hong Kong, Singapore and London, a market source said.

The roadshow began on Wednesday.

A dollar-denominated issue of notes could follow.

Bank of China and BNP Paribas are the bookrunners and – along with CCBI, Haitong International, ICBCI and Wing Lung Bank – the joint global coordinators for the deal.

Motherson sets roadshow

India’s Samvardhana Motherson will set out on Friday for a roadshow to market a dollar-denominated issue of notes, according to a company announcement.

ANZ, DBS Bank and HSBC are the joint global coordinators, joint bookrunners and joint lead managers for the Regulation S deal. Barclays and Standard Chartered are joint bookrunners and joint lead managers.

The roadshow will be held in Hong Kong, Singapore and London.

The subsidiary of Motherson Sumi Systems Ltd. is a Noida, India-based supplier of automobile components.

Fibra Uno plans marketing trip

Mexico’s Fibra Uno will depart on June 6 for a roadshow to market a dollar-denominated issue of notes, a market source said.

BBVA, Deutsche Bank, Goldman Sachs and Santander are the bookrunners for the Rule 144A and Regulation S deal.

The roadshow will start in London and Los Angeles and conclude on June 7 in Boston and New York.

Fibra Uno acquires, develops and operates commercial real estate in Mexico.

Eldorado advances deal

Brazil’s Eldorado Brasil Celulose departed on Thursday for a roadshow to market a dollar-denominated issue of notes, a market source said.

The company previously announced plans to this year issue $500 million in notes with a maximum maturity of seven years.

BofA Merrill Lynch, Credit Suisse, BB Securities and Santander are the bookrunners for the Rule 144A and Regulation S deal.

The roadshow started in London and will travel to Zurich, Geneva, Los Angeles and New York before concluding on June 8 in Boston.

Eldorado is a Sao Paulo-based pulp producer.

Evraz mandates bookrunners

Russia’s Evraz Group SA has mandated Barclays, Gazprombank, ING, JPMorgan, Societe Generale CIB and VTB Capital as joint bookrunners for a dollar-denominated issue of notes, a market source said.

The notes are being offered alongside a tender offer.

Evraz is a vertically integrated steel making and mining company based in London with operations mainly in Russia.

Orlen does deal

On Wednesday, Poland’s PKN Orlen priced €750 million 2˝% notes due June 7, 2023 at 98.727 to yield 2.702%, or mid-swaps plus 260 bps, a market source said.

BNP Paribas and Societe Generale CIB were the global coordinators and – along with Citigroup, ING, PKO BP, Santander and UniCredit – the joint lead managers and bookrunners for the Regulation S deal.

The issuer is an oil refiner based in Warsaw.

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