Issuance from ASE, Lai Sun, Net4Gas, Macedonia; Ukraine, Russia remain in focus

By Christine Van Dusen

Atlanta, July 17 – Taiwan’s Advanced Semiconductor Engineering, China’s Lai Sun Development Co. Ltd., Czech Republic’s Net4Gas sro and Macedonia were among the issuers to print notes on Thursday as investors focused the plane crash in Ukraine and sanctions against Russia.

On Thursday, a Malaysia Airlines flight with 295 passengers aboard was downed in Eastern Ukraine. As of the market close in the United States, reports had not identified who was responsible for the crash.

Meanwhile, the United States imposed sanctions against several Russian financial companies, preventing them from accessing capital markets, as punishment for activities in Eastern Ukraine and Crimea.

All of this made for some weak trading of emerging markets assets on Thursday, a London-based analyst said.

Bonds from sanctioned Vnesheconombank widened by as much as 75 basis points while OAO Sberbank, which was not sanctioned, widened by about 30 bps. Russia’s 2030s moved out 15 bps.

Looking to Latin America, most bonds weakened substantially on Thursday amid very thin liquidity, a New York-based trader said.

Selling increased as the session went on and performance from recent new issues was mixed, he said.

Peru-based Corporacion Financiera de Desarrollo SA (Cofide) saw its two-tranche issue of $600 million notes due 2019 and 2029 move up a bit in trading, he said.

The deal included $300 million 3¼% notes due 2019 that priced at 99.785 and $300 million 5¼% notes due in 2029 that priced at 99.866.

Citigroup, Morgan Stanley and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.

But the new notes from Mexico-based Unifin Financiera SAPI de CV – $400 million 6¼% notes due 2019 that priced at 99.472 – weakened, he said.

Citigroup, Credit Suisse and Scotia were the bookrunners for the Rule 144A and Regulation S deal.

Net4Gas prints euros

In its new deal, Czech Republic-based gas transmission system operator Net4Gas priced a two-tranche issue of notes due July 28 of 2021 and 2026 in a Regulation S deal, according to a company announcement.

The €300 million 2½% notes due 2021 came to the market at 99.475 to yield mid-swaps plus 165 bps via Barclays, BNP Paribas and Unicredit.

The notes were talked at a spread in the 170 bps area.

The €100 million 3½% notes due 2026 came to the market at 99.711 to yield mid-swaps plus 195 bps via BofA Merrill Lynch, Credit Agricole CIB and RBS.

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

South Africa issues notes

Also on Thursday, South Africa priced a two-tranche issue of €500 million 3¾% notes due July 24, 2026 and $1 billion 5 3/8% notes due July 24, 2026 in a Securities and Exchange Commission-registered deal, a market source said.

The €500 million 3¾% notes due 2026 priced at 99.298 to yield 3.284%, or mid-swaps plus 225 bps. The notes were talked at a spread in the 240 bps area.

The $1 billion 5 3/8% notes due 2044 priced at 98.303 to yield 5.491%, or Treasuries plus 220 bps. Talk was set in the 240 bps area.

Barclays, Citigroup and Rand Merchant Bank were the lead managers. Investec was the co-lead manager.

The proceeds will be used to repay maturing debt and for general governmental purposes.

ASE sells notes

Taiwan’s Advanced Semiconductor Engineering – through Anstock II Ltd. – sold $300 million notes due in 2017, according to a company announcement.

Other details on the pricing were not immediately available on Thursday.

HSBC, Citigroup and DBS Bank were the bookrunners for the Regulation S deal. HSBC and SEB were joint structuring advisors. HSBC was the sole global coordinator.

The proceeds from the “green” bonds will be credited to a special account that will support the company’s funding for eligible projects, including environmentally certified properties, energy efficiency in manufacturing processes, waste management, water management and green product development.

Macedonia does deal

In another new deal, Macedonia priced €500 million 3.975% notes due July 24, 2021 at 98.365 to yield 4¼% via Deutsche Bank and HSBC in a Rule 144A and Regulation S transaction.

And Chinese real estate company Lai Sun Development sold RMB 650 million 7.7% notes due July 24, 2018 at par to yield 7.7%, a market source said.

BNP Paribas, DBS Bank, HSBC and Standard Chartered Bank were the bookrunners for the Regulation S deal.

The proceeds will be used for general corporate purposes.

Entel launches

Chile’s Empresa Nacional de Telecommunicaciones SA (Entel) launched an $800 million issue of notes due Aug. 1, 2026 (expected ratings: Baa2/BBB/BBB+) at Treasuries plus 230 bps, a market source said.

JPMorgan and Santander are the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used to refinance certain existing indebtedness and for general corporate purposes.

The issuer is a Santiago-based telecommunications company.

Rolta sets talk

Technology services company Rolta India Ltd. set talk at 9% to 9 1/8% for its planned issue of dollar-denominated notes due in five years, a market source said.

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

The proceeds will be used to repay indebtedness and for working capital and general corporate purposes.

The notes are expected to price by the end of the week.

Nigerian bank sets talk

First Bank of Nigeria set initial price talk at 8¼% to 8½% for an issue of between $300 million and $500 million notes due in seven years (expected ratings: BB-/B+/), a market source said.

Citigroup and Goldman Sachs are the bookrunners for the Rule 144A and Regulation S deal.

And Buenos Aires is looking to issue up to $890 million of notes, a market source said.

Caixa prices bonds

On Wednesday, Brazil’s Caixa Economica Federal sold $500 million 7¼% notes due July 23, 2024 at par to yield 7¼%, a market source said.

The notes were talked at a yield in the low- to mid-7% area.

BB Securities, BofA Merrill Lynch, Bradesco BBI, BTG Pactual, Deutsche Bank Securities and HSBC were the bookrunners for the Rule 144A and Regulation S deal.

Caixa Economica Federal is a Brasilia-based lender.

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