Issuers launch in Asia; TSKB to price; JSL Europe prices add on; Latin America calendar grows

By Rebecca Melvin

New York, Jan. 8 – China’s Longfor Properties Co. Ltd. and Country Garden Holdings Co. Ltd. announced on Monday plans to issue benchmark-sized offerings of dollar-denominated notes and other issuers in Asia launched during the session, as well as in the Middle East and Asia. Still, it was generally a slower day for emerging markets compared to last week’s strong action, sources said.

Longfor is a Beijing-based investment holding company and Country Garden is a Foshan, China-based real estate developer.

In addition, Singapore-based energy company Puma Energy Holdings Pte. Ltd. said it plans to price a benchmark-sized offering of dollar-denominated eight-year notes, which will be non-callable for three years.

Several issuers in India also indicated that they had notes coming soon.

Moving eastward, Turkey’s Turkiye Sinai Kalkinma Bankasi AS launched an offering of 2023 notes that was seen pricing on Tuesday, according to a market source.

Spreads on TSKB’s existing notes ranged from 0.6 to 5 basis points wider on three shorter-dated notes, but about six bps tighter on the longest dated TSKB bonds, a 7 5/8% note due 2027, a London-based trader said.

Oman’s curve was about unchanged to 4 bps wider on the day as the market awaits pricing of the sovereign’s multiple tranches later in the week. Saudi Arabia was active, with spreads 1 to 2 bps tighter from the 2028s and downward, but the long end was unchanged.

It was a “busy start” to the morning session before a “more subdued” afternoon, the trader said.

“Bigger picture, EM took a little pause after a banner opening in the first four days of the year,” the trader said. Interest rates were steady at 2.47% and oil was still higher.

It is surprising that more Central & Eastern Europe and Middle East and Africa deals have not been announced, the trader said. Nevertheless, there was still net buying on Monday by a ratio of about 4 to 1, he added.

Latin American new deals

In Latin America, JSL Europe SA priced a $300 million add on to its 7¾% notes due 2024, lifting the issue size to $625 million.

The new 7¾% notes priced at 105.207 of par to yield 6¾%.

Bookrunners for the offering were Morgan Stanley, J.P. Morgan and Santander Securities, which were the same bookrunners of the issue originally priced on July 19.

The notes are guaranteed by JSL SA.

Proceeds will be used for debt refinancing and for general corporate purposes.

JSL SA is a conglomerate which operates in segments of supply chain dedicated services, cargo transportation and passenger transportation, outsourced fleet management and vehicle commercialization and car rental services. It is based in Mogi das Cruzes and maintains corporate offices in Sao Paulo.

Meanwhile, Brazil’s Hidrovias International Finance Sàrl, a subsidiary of Hidrovias do Brasil SA, announced plans to price a dollar denominated offering of seven-year senior unsecured notes.

Fixed-income investor meetings are being held through Jan. 16.

Based in Sao Paulo, Hidrovias is an inland waterway services company.

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