Romania, Vale, Bancolombia, Singapore corporates price deals as primary market wakes up

By Christine Van Dusen and Aleesia Forni

Atlanta, Sept. 4 - Two issuers from Singapore - Oversea-Chinese Banking Corp. (OCBC) and StarHub Ltd. - sold notes on Tuesday alongside Romania, Brazil's Vale SA and Colombia's Bancolombia SA as the summertime lull lifted and emerging markets issuers and investors kicked activity up a notch.

Still, the market showed some caution following Federal Reserve chairman Ben Bernanke's disappointing remarks in Wyoming on Friday and ahead of the European Central Bank's meeting this Thursday.

"Following the conference in Jackson Hole uncertainty did not wane but, on the contrary, even increased," according to a report from UFS Investment Co. "In the coming days, bond dynamics - as well as dynamics in most financial markets - will be defined by the ECB decisions on Thursday and [ECB president Mario Draghi]'s comments on bond purchase."

Market sources are also keeping an eye out for Friday's release of non-farm payroll numbers from the United States, which could rise - a move that might keep the Fed from going full steam ahead with quantitative easing, according to a report from Barclays.

Still, most eurobonds didn't react strongly to this wariness. Indeed, bonds from Russia inched up slightly at the start of the week, with the sovereign's 2030s adding 0.2% on the back of rising oil prices.

In other trading, the recent notes from the Republic of Angola ticked along on Tuesday, a trader said.

The $1 billion 7% notes due 2019 priced at par via VTB Capital in a Regulation S deal.

The notes opened at 106.25 bid, 107 offered and were later seen at 107 bid, 107.75 offered.

"Nice move higher by Angola today, a solid 25 basis points tighter," he said.

In other news from Africa, Zambia will set out on a roadshow starting Thursday for a dollar-denominated issue of notes due 2022, a market source said.

Barclays and Deutsche Bank are the bookrunners for the Rule 144A and Regulation S deal.

The issue could total $500 million.

South Africa sees buyers

From South Africa, buyers were seen for sovereign paper, as well as Eskom Holdings, a trader said.

He also reported seeing more retail buyers of Investec Ltd. The company's 2017 bonds - which traded Friday at 97.75 bid, 98.75 offered - were seen Tuesday at 98 bid, 99 offered.

Five-year credit default swaps for the sovereign were trading Tuesday at 147 bid, 150 offered.

From the Middle East, Bahrain's 2022s were seen at 102 bid, 102.75 offered on Tuesday after Friday's level of 103.50.

Qatar's 2042s traded Tuesday at 125.12 bid 126.12 offered after last week's 124.75 bid, 125.75 offered.

After trading Thursday with a 114 handle, Mubadala's 2021 notes were quoted Tuesday at 114.25 bid, 115 offered. This followed Standard & Poor's affirmation of the Abu Dhabi-based company's foreign currency issuer credit rating at AA, given the likelihood of government support.

Ukraine in focus

Looking to Ukraine, trading activity was limited, with the sovereign's 2020s quoted at 93.25 bid, 94.25 offered at the start of the shortened week, according to Svitlana Rusakova of Dragon Capital.

Last week the notes traded at 93 bid, 94 offered.

Ukraine's 2021s were seen at 94 bid, 95 offered on Tuesday after last week's levels of 93.75 bid, 94.75 offered.

"Corporates were also quiet and virtually unchanged," she said. She pointed to Metinvest's 2015s, which were quoted at 99.25 bid, 100.25 offered.

OCBC sells notes

In its new deal, Singapore-based lender Oversea-Chinese priced $1 billion 3.15% notes due March 11, 2023 at 99.905 to yield 3.169%, or Treasuries plus 255 bps, a market source said.

Initial guidance was set at 270 bps over Treasuries before being tightened to the area of Treasuries plus 255 bps to 265 bps.

Bank of America Merrill Lynch, JPMorgan and OCBC were the bookrunners for the Rule 144A and Regulation S deal.

Proceeds will be used for general corporate purposes.

StarHub does deal

In another new deal, Singapore-based telecommunications company StarHub sold S$220 million of fixed-rate notes under its S$1 billion multicurrency medium-term note program established on Sept. 23, 2011.

The 10-year notes priced at par to yield 3.08% via bookrunners ANZ Banking Group and DBS Bank.

Proceeds will be used for general corporate funding requirements and investments.

And Romania priced a €750 million tap of its 6½% notes due June 18, 2018 at 106.817 to yield 5.1%, a market source said.

The existing issue totaled €750 million and priced at 98.59.

BNP Paribas, Deutsche Bank, JPMorgan and UniCredit were the bookrunners for the deal.

Bancolombia prints bonds

Colombia-based lender Bancolombia priced a $1.15 billion issue of 5 1/8% notes due Sept. 11, 2022 at 99.421 to yield Treasuries plus 362.6 bps, a market source said.

Bank of America Merrill Lynch, Citigroup and Morgan Stanley were the bookrunners for the Securities and Exchange Commission-registered deal.

Proceeds will be used to strengthen capital structure, for regulatory compliance and for general corporate purposes.

The notes are part of a recently announced $1.2 billion note program that Moody's has rated Baa3.

Vale prices notes

Brazil-based metals, mining and logistics company Vale priced a $1.5 billion issue of 5 5/8% notes due Sept. 11, 2042 at 99.198 to yield Treasuries plus 300 bps, a market source said.

BB Securities, Bradesco BBI, Citigroup, JPMorgan and Santander were the bookrunners for the SEC-registered deal.

Proceeds will be used for general corporate purposes.

PTT plans roadshow

From Bangkok, petrochemical and refining company PTT Global Chemical PCL set a roadshow this week ahead of a possible dollar-denominated offering, according to a market source.

The meetings will be held Sept. 5 to Sept. 11 and will make stops in Europe, Asia and the United States.

Goldman Sachs, RBS, Barclays and Standard Chartered are arranging the meetings.

Also on Tuesday, Phoenix-based and Latin America-focused Southern Copper Corp. postponed its planned issue of notes due 2022 and 2042, a market source said.

Proceeds were to be used for general corporate purposes.

No other details were immediately available.

Marisa Wong contributed to this article

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