Votorantim plans roadshow; PDVSA, Venezuela down amid turmoil; Credit of Moscow eyes issue

By Colin Hanner

Chicago, April 19 – Talk of several new issues came to the forefront in emerging markets on Wednesday, market sources said, even in a less-than-normally active Latin American market.

Activity has been picking up since the end of the Easter holiday, a market source said, though with holidays overextended into this week, along with companies beginning to enter an earnings blackout, activity has yet to ramp up to normal.

Yet, Brazil’s Votorantim Metais, a Sao Paulo, Brazil-based zinc producer, announced an international roadshow that will begin on April 21, and a deal may follow, a market source said.

HSBC, Morgan Stanley and JPMorgan Chase & Co. are global coordinators for the deal.

No other details were available at press time.

PDVSA, Venezuela down sharply

Amid protests scheduled to take part in Venezuela and a bleak outlook given by the IMF, Petroleos de Venezuela and Venezuela’s bonds were down markedly on Wednesday.

PDVSA’s 8½% notes due 2017 were down 1¾ points on the day to an 89¼ bid, 90¼ offer.

The 9% notes due 2021 were down 2½ points to a 51½ bid, 52½ offer.

And the 6% notes due 2024 were down 1 point to a 38 bid, 39 offer.

Venezuela’s 7% notes due 2018 were down 1 point to a 70 bid, 71 offer.

Its 9% notes due 2023 were down 1½ points to a 47½ bid, 48½ offer.

And the 9¼% notes due 2027 were down 1½ points to a 49¼ bid, 50¼ offer.

Credit Bank of Moscow deal

Another new deal was whispered in the emerging market space on Wednesday, a market source said, coming from Credit Bank of Moscow.

The privately-owned bank operating in Moscow and the Moscow region plans to issue dollar-denominated additional tier 1 bonds, non-callable for 5½ years, a market source said.

Tenor updates for new deals

Russian chemical holding company PhosAgro announced a mandate for investor meetings for a new dollar-benchmark deal that is expected to have a four- or five-year tenor, a market source said.

KOKS Finance DAC is expected to price new five-year loan participation notes as a part of a refinancing that includes a cash tender offer for holders of its 10¾% notes due 2018, a market source said.

And Metalloinvest Finance DAC is expected to price seven-year notes on April 24 as part of a refinancing that includes a tender offer, a market source said.

State of South Africa

After a reshuffling in South Africa’s presidential cabinet in late March, uncertainty has hung over the country’s outlook, and its new finance minister may try to solidify those concerns.

“While concerns remain that [Finance Minister Gigaba] might loosen fiscal policy (e.g., through the approval of nuclear plants for Eskom) and risk policy uncertain amid plans for a radical economic transformation,” comments about communicating with investors and rating agencies are helpful for easing worries about the National Treasury, a market source said.

The source said the National Treasury would be planning a roadshow at a “later stage.”

The country’s 5½% notes due 2020 were quoted with a 106 bid, 106½ offer.

Its 4.665% notes due 2024 were quoted with a 101 bid, 102 offer.

Saudi ticks higher

Saudi Arabia’s 2 3/8% notes due 2021 were up less than 1/8 point to a 98.31 bid, 98.51 offer from the morning session.

And its 3¼% notes due 2026 were up ¼ point to a 97¾ bid, 98 offer.

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