Agile, Hong Kong Broadband issue notes to end hectic week; Fosun, Regal, Minerva on deck

By Christine Van Dusen

Atlanta, Jan. 11 - China's Agile Property Holdings Ltd. and Hong Kong Broadband Network Ltd. printed notes on Friday, capping off a busy week for emerging markets issuers, particularly from Asia and Latin America.

Indeed, the pipeline appears to be prepped for more deals from those regions, with possible notes ahead from such names as China's Fosun International Ltd., China's Regal Real Estate Investment Trust, China's Yuexiu Property Co. Ltd., Brazil's Minerva SA and Philippines-based JG Summit Holdings Inc.

The Markit iTraxx SovX index spread was 1 basis point wider while the corporate index moved out by 2 bps.

"This morning we are seeing profit-taking in Asian credit, with real money locking in gains from recent issuance," a London-based analyst said. "The Russia sovereign has been weak over the last 48 hours, with longer-dated maturities coming out."

Russia's 2042s were seen 18 bps wider on the week.

"High-yielders continue to outperform low-yielders, where we are starting to see some paper come out," she said.

Good buyers were sighted for Dubai's 2021s, a London-based trader said.

"Market context now is 111½ bid, 112½ offered, but we're seeing consistent Street buyers around the 111 5/8 bid, 111¾ offered mark the past few days," he said.

In its new deal, China-based Agile Property Holdings priced a $700 million issue of 8¼% perpetual notes at par.

Hongkong and Shanghai Banking Corp. Ltd., UBS AG, Hong Kong Branch and Morgan Stanley & Co. International plc were the lead managers and joint bookrunners for the Regulation S deal.

ICBC International Securities Ltd. was a joint lead manager.

Proceeds will be used for the purchase of new land sites, refinancing and general working capital purposes.

Hong Kong Broadband does deal

In another new deal, Hong Kong Broadband Network priced a $450 million issue of 5¼% notes due Jan. 17, 2018 at par to yield 5¼%, a market source said.

The notes priced tighter than talk, set at the 5½% area.

JPMorgan, Standard Chartered and UBS were the bookrunners for the Regulation S deal.

The notes were issued by Metropolitan Light International.

Ukraine notes dip

In other trading, Ukraine's sovereign bonds were seen a bit lower toward the end of the week, while corporates were mostly unchanged or a bit stronger, said Svitlana Rusakova of Dragon Capital.

The sovereign's 2017s dipped to 110¼ bid, 111¼ offered. The 2020s weakened to 104¼ bid, 105¼ offered.

Quasi-sovereign Naftogaz lost a little bit of ground, trading at 103¾ bid, 104¾ offered. And Mriya Agro Holdings saw two-way flows at 103¾ bid, 105¼ offered.

Meanwhile Metinvest's 2015s were unchanged at 105½ bid, 106½ offered.

Fosun mandates bookrunners

On Friday, China-based conglomerate Fosun International mandated HSBC, Standard Chartered Bank and UBS for a roadshow to market a dollar-denominated issue of notes, a market source said.

The marketing trip for the Regulation S deal will begin Jan. 14.

The proceeds will be used to refinance indebtedness, for working capital and for general corporate purposes, according to a company filing.

And China's Regal REIT mandated ANZ, HSBC, JPMorgan and UBS for a roadshow beginning Jan. 14 and traveling to Hong Kong and Singapore.

Yuexiu taps banks

Also From China, Yuexiu Property has mandated Bank of China, DBS Bank, HSBC and Morgan Stanley for a roadshow starting Jan. 14, a market source said.

The roadshow for the Regulation S offering of dollar notes will stop in Hong Kong, Singapore and London.

The deal is part of the company's $2 billion medium-term note program.

Proceeds will be used for general corporate purposes.

Minerva roadshow ahead

From Latin America, Brazil-based food processing company Minerva picked BTG Pactual, HSBC and Credit Suisse to arrange a marketing trip for a 10-year issue of dollar notes in benchmark size, a market source said.

The Rule 144A and Regulation S notes will be non-callable for five years.

Concurrently the company is launching a purchase offer for up to $500 million of the company's existing 2017, 2019 and 2022 bonds.

The roadshow will begin on Jan. 14 in Los Angeles and London, then travel to New York before concluding on Jan. 16 in Boston.

JG to market issue

Philippines-based JG Summit will set out on a roadshow starting Jan. 15 for a 10-year issue of dollar notes, a market source said.

Citigroup, Credit Suisse and HSBC are the bookrunners for the Regulation S deal.

The notes will be issued by wholly owned subsidiary JGSH Philippines Ltd., according to a letter to the Philippine Stock Exchange and the Philippine Dealing and Exchange Corp.

JG Summit is a Pasig City-based conglomerate that focuses on air transportation, banking, food manufacturing, petrochemicals, real estate, hotels and property development and telecommunications.

Credit Europe Bank plans deal

Netherlands-based Credit Europe Bank NV, a lender that serves emerging Europe, China and the United Arab Emirates, has mandated Citigroup, Goldman Sachs and HSBC for an issue of dollar-denominated notes, a market source said.

A roadshow for the Regulation S-only issue will begin Jan. 15.

Copeinca sells notes

On Thursday, Peru-focused fishmeal and fish old producer Corporacion Pesquera Inca SAC (Copeinca) priced a $75 million reopening of its existing 9% notes due Feb. 10, 2017 (B2/B+/B+) at 107 to yield 6.989%, a market source said.

BTG Pactual and Santander were the bookrunners for the Rule 144A and Regulation S deal.

Proceeds will be used to refinance debt, for capital expenditures and for general corporate purposes.

The outstanding size is $175 million.

Lai Sun oversubscribed

The final book for China-based Lai Sun International Finance 2012 Ltd.'s new $350 million issue of 5.7% notes due Jan. 18, 2018 was $3.5 billion from 195 accounts, a market source said.

The notes priced at par to yield 5.7% via BNP Paribas, HSBC and Standard Chartered Bank in a Regulation S deal.

About 89% of the orders came from Asia while 11% came from Europe.

Private banks accounted for 42%, fund managers 39%, banks 13% and corporates 6%.

The notes are guaranteed by Lai Sun Development Co. Ltd., a Hong Kong-based real estate company.

Power Grid notes in demand

Also oversubscribed was Power Grid Corp. of India Ltd.'s $500 million 3 7/8% notes due Jan. 17, 2023.

The deal attracted about $9.5 billion from 354 accounts, with 58% from fund managers 10% from funds and central banks, 15% from private banks, 9% from banks and 8% from insurers.

The notes priced at 98.954 to yield 4.003%, or Treasuries plus 210 bps, at the tight end of talk.

Barclays, RBS and Standard Chartered Bank were the bookrunners for the Regulation S deal.

Investors pick up Champion

Investors snapped up China-based Champion Real Estate Investment Trust's $400 million issue of 3¾% notes due Jan. 17, 2023.

The final book was more than $3 billion from about 135 accounts, with 50% from Hong Kong, 35% from Singapore, 8% from other Asia and 7% from Europe.

Fund managers accounted for 53%, private banks 21%, banks 15% and insurers 11%.

The notes priced at 99.185 to yield 3.849%, or Treasuries plus 195 bps via Citigroup, HSBC and UBS in a Regulation S deal.

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