French election jump-starts session; Metalloinvest to close; HMEL prices; ACWA deal ahead

By Colin Hanner

Chicago, April 24 – A French election had global markets, including emerging markets, jumping during Monday’s session, a market source said. Several new deals are expected to price, with the pipeline steady out of Russia, Asia and Latin America.

“With the first round of the French presidential election behind us, we’re seeing a euphoric start into the day,” a market source said. Gulf states opened 5 to 10 basis points tighter, while Turkey was 7 to 9 bps tighter, a market source said. Factoring in underlying rates, movement was flat to inching lower, the source said.

Saudi Arabia’s 2 3/8% notes due 2021 were quoted with a 98.12 bid, 98.37 offer, and its 3.628% notes due 2027 were quoted with a 100.40 bid, 100½ offer.

Oman’s 3 5/8% due 2021 were quoted with a 101.15 bid, 101.30 offer. Its 4¾% notes due 2026 were quoted with a 100.31 bid, 100.81 offer.

The relief in the markets after the first of two rounds of the French election was reliant on Emmanuel Macron’s expected victory in the second round of voting to be held on May 7 against his far-right opponent, Marine Le Pen, who finished second in voting on Sunday.

As of late, “favorable external drivers outweigh domestic negatives” in emerging markets, the market source said.

Metalloinvest expected

Russia’s Metalloinvest Finance DAC is expected to price a dollar-denominated benchmark offering of seven-year notes on Monday, a market source said.

Initial price talk was in the low 5% area, a market source said, while another market source said talk was in a 5% to 5¼% area.

The deal is in excess of $1.6 billion, a market source said.

The new issue is part of a refinancing that includes a cash tender offer for any and all of the company’s $1 billion of 5 5/8% notes due 2020.

The settlement date for the new notes is expected to be May 2, or five days following the new notes’ pricing.

Credit Suisse (Europe) Securities Ltd., Sberbank CIB, VTB Capital plc and Societe Generale are global coordinators and bookrunners for the deal, and ING Bank NV, London Branch and Merrill Lynch International are joint lead managers and bookrunners.

“It’s pretty busy out there,” a market source said. “There are quite a lot of trades, quite a few Russian [deals] in the pipe to follow Metalloinvest. Another four deals that could all be this week’s business” – Credit Bank of Moscow, KOKS Finance DAC, PhosAgro and MHP SA – “are wrapping up investor work in the next few days. There’s an additional supply from Russia this week.”

Other than that, the source said, a list of Asian new issuances has priced, or are expected, the market source said.

HPCL pricing

HPCL-Mittal Energy Ltd. priced $375 million of 10-year notes at par to yield 5¼% on Monday, a market source said.

Initial price guidance was in a 5 5/8% area and was later revised to 5¼%, a market source said.

ANZ, Citigroup and JPMorgan were joint global coordinators and bookrunners for the deal. SBI Capital and Standard Chartered were also joint bookrunners.

The issuer is a Punjab, India-based joint-venture crude oil refinery.

ACWA eyes deal

A postponed dollar-denominated offering of notes from Saudi Arabia’s ACWA Power Management and Investments One Ltd. is expected to resurge with a possible new deal next week, a market source said.

Investor calls will be conducted Monday through Friday, the source said.

In December, S&P assigned a preliminary BBB- rating to the dollar-denominated senior secured sukuk, and Moody’s Investors Services assigned provisional long-term Baa3 ratings.

“It is similar to what was out late last year with fresh financials,” a market source said.

ACWA Power is a Riyadh-based company that provides electricity and desalination services.

Fidabanka plans tier 2 deal

Fibabanka AS has mandated banks for investor meetings on Tuesday, a market source said, for a proposed tier 2 dollar-denominated issue expected to price later in the week, a market source said.

The size of the deal is expected to be at or around $300 million.

Fidabanka is an Istanbul-based private bank.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.