New deals from Romania, Colombia; Brazil in spotlight; SECO, TAQA among popular bonds

By Christine Van Dusen

Atlanta, Oct. 21 – Romania and Colombia sold notes on Tuesday as investors kept an eye on Brazil, where the presidential election remained a tight contest.

In response, Brazil’s Petroleo Brasileiro SA weakened during the session, moving out about 16 basis points, while Brazil-based Vale SA’s bonds widened about 5 bps.

Other Latin American bonds were mostly quiet amid mixed flows, a New York-based trader said.

He had expected to see more yield-hunting investors shopping for names from the region, but buyers were somewhat scarce for names like Mexico’s Cemex SAB de CV.

From the Middle East, high-yield names “regained some of their footing after being very heavy last week,” a London-based trader said. “Perpetuals are a mixed bag again, although there was good buying of Emirates Islamic Bank and [Global Education Management Systems Ltd.].”

Bonds from Abu Dhabi Islamic Bank and Abu Dhabi-based Al Hilal Bank were softer, he said, while Saudi Electricity Co., Abu Dhabi National Energy Co. (TAQA) and International Petroleum Investment Co. were popular.

“Qatar’s long end is still very poor,” he said. “Bahrain’s 2044s are more balanced, having traded a few times between 102.375 and 102.50.”

In its new deal, Romania priced $1.5 billion 2 7/8% notes due Oct. 28, 2024 at 99.163 to yield 2.973%, or mid-swaps plus 185 bps, a syndicate source said.

The notes were talked at a spread in the 200 bps area.

HSBC, Raiffeisen Bank International, Societe General CIB and UniCredit were the bookrunners for the Regulation S deal.

Colombia taps issues

Also on Tuesday, Colombia priced a $1 billion tap its 4% notes due Feb. 26, 2024 and 5 5/8% notes due Feb. 26, 2044, a market source said.

The deal included $500 million 4% notes due 2024 that came to the market at Treasuries plus 145 bps and $500 million 5 5/8% notes due 2044 that came to the market at Treasuries plus 185 bps.

Citigroup and Goldman Sachs are the bookrunners for the Securities and Exchange Commission-registered deal.

The proceeds will be used for general budgetary purposes.

Other details on the new issues were not immediately available on Tuesday.

The original $1.6 billion of the 2024 notes was issued on Sept. 26, 2013.

The original $2 billion of the 2044 notes was issued on Jan. 28.

Roadshow for JSW

In deal-related news, Poland’s Jastrzebska Spolka Weglowa SA (JSW) will set out on Wednesday for a roadshow to market a dollar-denominated issue of notes, a market source said.

Credit Suisse and JPMorgan are the bookrunners for the Rule 144A and Regulation S transaction.

The roadshow will begin in London and travel to Los Angeles and Boston before concluding on Oct. 28 in New York.

The issuer is a coking coal company based in Jastrzebie-Zdroj, Poland.

Global Bank plans roadshow

Panama’s Global Bank Corp. is planning to hold a roadshow to market an issue of senior notes, a market source said.

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

The issuer is a privately owned bank in Panama.

E-CL postpones issuance

Chile’s E-CL SA has postponed plans for an issue of notes, a market source said.

The company recently set out on a roadshow to market the Rule 144A and Regulation S deal with bookrunners BofA Merrill Lynch, Citigroup and HSBC.

No other details were immediately available on Tuesday.

E-CL is a Santiago, Chile, holding company with assets in electricity and natural gas.

© 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.