Primary hosts Chexim, GNL Quintero, Greenko, others; Russian CDS widen; LatAm tightens

By Christine Van Dusen

Atlanta, July 24 – Export-Import Bank of China (Chexim), China’s Sichuan Development Holding Co. Ltd. and Singapore’s Dyna-Mac Holdings Ltd. were among the issuers to print notes as the European Union readied further sanctions on Russia.

Also selling notes during the session were Modern Land (China) Co. Ltd., Chile’s GNL Quintero SA and India’s Greenko Group plc.

Ahead of expected sanctions against financial and energy companies in Russia, credit default swaps for the sovereign moved about 5 basis points wider on Thursday, a London-based analyst said.

Meanwhile, credit default swap spreads from Turkey tightened 14 bps on the back of a positive report on inflation.

From Latin America, corporate bonds also narrowed, with Brazil’s Petroleo Brasileiro SA (Petrobras) moving in another 5 bps and seeing buyers.

High-grade names were also a bit stronger, though Brazil’s Votorantim Cimentos SA’s paper moved lower, he said.

Chile-based Empresa Nacional de Telecommunicaciones SA’s recent $800 million 4¾% notes due 2026 that priced at 99.763 improved on Thursday.

And the new issue from Chile-based natural gas company GNL Quintero – $1.1 billion 4.634% notes due 2029 that priced at par on Thursday to yield Treasuries plus 212.5 bps – moved up about 1 point in the secondary market, he said.

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

BBVA, BofA Merrill Lynch, HSBC and Santander were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used to refinance debt and for general corporate purposes.

“The funding is satisfying a huge need for the country,” he said. “Nicely done.”

Chexim does deal

From the primary market, China’s Chexim priced a $3 billion two-tranche issue of notes due 2019 and 2024, a market source said.

The $1.5 billion 2½% notes due 2019 priced at 99.506 to yield Treasuries plus 90 bps. Talk was set in the 95 bps area.

The $1.5 billion 3 5/8% notes due 2024 priced at 99.229 to yield Treasuries plus 120 bps, following talk in the 125 bps area.

ANZ, Bank of Communications, Barclays, Credit Agricole CIB, HSBC, ICBC International, JPMorgan and RBS were the bookrunners for the Rule 144A and Regulation S deal.

Modern Land prices bonds

In its new deal, Modern Land priced a $125 million issue of 12¾% five-year notes at 99.101 to yield 13%, a market source said.

Credit Suisse Securities (Europe) Ltd., Goldman Sachs (Asia) LLC, HSBC Ltd., J.P. Morgan Securities plc, Guotai Junan Securities (Hong Kong) Ltd., Morgan Stanley & Co. International plc and CLSA Ltd. were the joint bookrunners and joint lead managers for the Regulation S offering, with Credit Suisse and Goldman Sachs as the joint global coordinators.

Proceeds from the proposed notes will be used to fund existing and new property projects and to refinance existing debt.

Sichuan Development prices

China’s Sichuan Development – through Yieldking Investment Ltd. – sold RMB 1 billion three-year notes at par to yield 5.15%, a market source said.

Bocom International, HSBC, ICBC (Asia), ABC International, CCB International, CICC HK Securities and Citigroup were the bookrunners for the Regulation S deal.

The proceeds will be used for general corporate purposes.

Sichuan Development is an investment holding company based in Sichuan Province.

Issuance from Dyna-Mac

Singapore’s Dyna-Mac Holdings sold S$50 million three-year notes at par to yield 4¼%, a market source said.

OCBC and Standard Chartered Bank were the bookrunners for the Regulation S deal.

Dyna-Mac is an investment holding company that is engaged in the fabrication and assembly of topside modules for floating, production, storage and offloading vessels and for floating, storage and offloading vessels.

Greenko sells bonds

India’s Greenko Group priced $550 million five-year notes at par to yield 8%, a market source said.

The notes were talked at a yield in the 8¼% area.

Deutsche Bank, Barclays, Investec, JPMorgan and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will primarily be used to refinance debt and to repay loans, as well as for general corporate purposes.

Based in Hyderabad, India, Greenko Group is engaged in the business of owning and operating clean energy facilities.

Tata Steel launches notes

India’s Tata Steel launched a combined $1.5 billion of notes due in 5½ and 10 years, a market source said.

The $500 million notes due Jan. 31, 2020 launched at 4.85%, following talk in the low-to-mid-5% area.

The $1 billion notes due July 31, 2024 launched at 5.95%, following talk of a yield in the mid-6% area.

ANZ, BofA Merrill Lynch, BNP Paribas, Citigroup, Credit Agricole CIB, Deutsche Bank, HSBC, Morgan Stanley, Rabobank International, RBS, SBI Capital Markets and Standard Chartered Bank are the bookrunners for the Regulation S deal.

The proceeds will be used for paying debt and for general corporate purposes.

China Railway offers guidance

China Railway Construction Corp. Ltd. set final guidance in the 4% area for its upcoming dollar-denominated issue of benchmark-sized perpetual notes, a market source said.

Citigroup, HSBC, BNP Paribas, DBS Bank and UBS are the bookrunners for the Regulation S deal.

The construction group is based in Beijing.

Brazil prints bonds

Late on Wednesday, Brazil priced $3.55 billion 5% notes due Jan. 27, 2045 (Baa2/BBB-/BBB) at 97.992 to yield 5.131%, according to a filing from the sovereign.

BofA Merrill Lynch, Deutsche Bank and Itau BBA were the bookrunners for the Securities and Exchange Commission-registered deal.

The proceeds will be used for liability management and general government purposes.

Senegal oversubscribed

The final book for Senegal’s new $500 million issue of 6¼% notes due 2024 that priced at par was about $3.5 billion, a market source said.

About 50% of the orders came from the United States, 29% from the United Kingdom and Ireland, 7% from other Europe, 6% from Germany and Austria, 5% from the Nordics and 3% from others.

Fund managers picked up 92%, banks 6% and pension funds and insurers 2%.

The notes came to the market at a yield of Treasuries plus 379.3 bps with bookrunners Citigroup, Societe Generale CIB and Standard Chartered Bank.

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