Brazil prices $1.25 billion; Pemex sells €1 billion; talk out on Abu Dhabi Commercial, Embraer

By Paul A. Harris

St. Louis, Sept. 30 - The Federative Republic of Brazil (Baa3/BBB-/BBB-) priced $1.25 billion of 5.65% global bonds due in 2041 at 97.498 to yield 5.8% on Wednesday in emerging markets.

The yield printed at the tight end of the 5.85% area price guidance.

Barclays Capital and HSBC managed the sale.

Brazil's new 2041 bonds closed flat on Wednesday, according to an emerging markets investor.

Meanwhile Brazil's previous long bond, the 11% notes due in August 2040, came off the day's highs, but closed at 134½ bid, unchanged from Tuesday, the buy-sider added.

Pemex prices €1 billion

Also on Wednesday Petroleos Mexicanos (Pemex) priced a €1 billion issue of 5.5% bonds maturing on Jan. 9, 2017 at a 250 basis points spread to mid-swaps.

Calyon Securities and Deutsche Bank ran the deal.

The bonds came at a reoffer price of 99.311 to yield 5.623%.

Pemex is a Mexico City-based government-run oil firm.

The deal played to a book that contained €2.5 billion of orders, according to an informed source.

Talk for upcoming deals

In other primary market action Abu Dhabi Commercial Bank PJSC set price guidance for its benchmark-sized dollar-denominated offering of five-year senior notes (Aa3/A) at Treasuries plus 262.5 basis points.

The deal, which is believed to be currently sized around $1 billion, is expected to price Thursday morning in Europe.

Abu Dhabi Commercial Bank, Bank of America Merrill Lynch, Deutsche Bank and Standard Chartered Bank are joint bookrunners for the Rule 144A/Regulation S offering.

Abu Dhabi Commercial Bank is the third largest bank in the United Arab Emirates, with total assets of $39.3 billion as of March 31, 2009. The Abu Dhabi government has a 64.8% stake in the bank through the Abu Dhabi Investment Council, while members of the ruling family hold at least an additional 10%.

And Brazil's Empresa Brasileira de Aeronautica SA (Embraer) set price talk for its $500 million maximum offering of global bonds due January 2020 (expected ratings Baa3/BBB-) at 6½% to 6 5/8%.

The deal is set to price in New York on Thursday.

Deutsche Bank Securities and Morgan Stanley are running the Securities and Exchange Commission-registered deal.

Proceeds will be used for general corporate purposes, which may include refinancing the debt of Embraer and its subsidiaries and/or funding working capital needs and capital expenditures.

Embraer is an aircraft manufacturer based in Sao Jose dos Campos, Brazil.

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