Brazil’s Klabin prices $1 billion in dual tranches; Sharjah prices $1 billion sukuk

By Rebecca Melvin

New York, March 27 – Klabin Austria GmbH issued on Wednesday $1 billion of senior unsecured notes in two equal tranches due 2029 and 2049 concurrently with a tender for existing notes.

The notes, guaranteed by Klabin SA, include $500 million of 5¾% note due 2029 and $500 million of 7.0% note due 2049.

The Government of Sharjah’s newly priced sukuk also hit the market with a $1 billion deal of seven-year paper, which bears a distribution rate of 3.854%. Spread was set at mid-swaps plus 155 basis points, which was tightened a good chunk from talk at mid-swaps plus 180 bps and represents only a slight new issue premium.

Order books for the deal reached $4.3 billion ahead of the launch.

Russia-focused steel company Evraz plc priced $700 million of 5¼% five-year notes at par. The Rule 144A and Regulation S notes will be used to refinance debt, including its senior notes due 2020.

Also debuting in the market was Tbilisi, Georgia-based telecommunications company Silknet JSC, which priced $200 million of 11% notes due 2024 at par. The notes, which are non-callable for three years, are expected to be used to refinance the company’s existing debt.

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