Persero plans dollar bonds; Ukranian corporate, sovereign spreads trade up; Kowepo widens

By Aleesia Forni

Virginia Beach, Sept. 19 – PT Pelabuhan Indonesia III (Persero) announced plans to price a dollar bond offering on Friday, as the market tone improved following positive developments in Ukraine.

Ukrainian sovereign bonds were up around ˝ of a point on Friday following comments from Finance Minister Oleksandr Shlapak that Ukraine would not need to restructure its sovereign debt, a source said.

The source added that corporate bonds in the space were up about ˝ point to 1 point on the day.

Ukraine-based poultry company MHP SA’s 2020s have decreased by 0.1 percentage point to 85 bid, 86.9 offered, an analyst said.

MetInvest BV has seen its bonds decline this week, with the 2015s moving down 1 percentage point to 77 bid, 80 offered, the analyst added.

In other trading, the recently priced 2.625% five-year notes from Korea Western Power (Kowepo) traded 1 basis point wider during the session.

In primary news, Guangzhou R&F Properties Co., Ltd. announced plans to price a renminbi-denominated offering of notes.

Kowepo widens

Korea Western Power’s $300 million of 2.625% five-year notes, which sold at Treasuries plus 92.5 bps on Monday, traded 1 bp wider on Friday.

The notes were quoted at 92 bps bid.

Barclays, BofA Merrill Lynch and Standard Chartered Bank were the bookrunners.

Korea Western engages in the production and supply of electricity and has headquarters in Seoul, South Korea.

Persero taps leads

PT Pelabuhan Indonesia III (Persero) has mandated ANZ, Credit Suisse Securities and Standard Chartered bank as bookrunners for a possible dollar-denominated offering of senior notes, a market source said.

The sale will be sold via Rule 144A and Regulation S.

Persero is a Surabaya, Indonesia-based provider of port service facilities.

Guangzhou eyes renminbi bonds

Guangzhou R&F Properties is proposing an up to RMB 7 billion issue of domestic medium-term notes, according to a company announcement.

The notes will have a maturity of three to 10 years.

The issuer intends to use proceeds for the development of ordinary commodity housing projects, to replenish its working capital and to repay bank loans for its welfare housing projects and ordinary commodity housing project.

The proposed notes are subject to shareholder approval at an upcoming extraordinary general meeting.

The real estate company is based in Guangzhou, China.

Honghua’s final book

The final book for Honghua Group Ltd.’s recently price $200 million of 7.45% senior notes due 2019 was more than $1.3 billion, a market source said.

The issue sold at par on Thursday.

HSBC Ltd., Citigroup Global Markets Inc., Morgan Stanley & Co. International plc and Merrill Lynch International were the joint global coordinators, joint lead managers and joint bookrunners for the Regulations S and Rule 144A offering.

Proceeds will be used to refinance existing indebtedness, including all amounts under the company’s term loan facility agreement, and, to a lesser extent, for general corporate purposes.

The large-scale equipment manufacturer and drilling service provider is located in Wan Chai, Hong Kong.

Marisa Wong contributed to this review.

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