Yasar Holding prints bonds; Oi notes move higher on takeover news; Unacem trades up

By Christine Van Dusen

Atlanta, Oct. 31 – Turkish conglomerate Yasar Holding AS sold notes on Friday as bonds from Brazil-based Grupo Oi SA moved higher and notes from Mexico’s Cemex SAB de CV were better bid.

Oi’s notes jumped 1½ points on Friday on the news that the company was bidding – along with Mexico’s America Movil SAB and Spain’s Telefonica SA – for TIM Participacoes SA in an effort to break up the company.

Paper from Oi looked like it was for sale, a New York-based trader said.

“Confusing takeover story,” he said. “Seems like it has a long way to go before this mass consolidation trade is settled, meaning the paper will continue to trade in the 3 point to 5 point range.”

Meanwhile, the curve for Brazil-based Petroleo Brasileiro steepened under selling pressure, he said.

The long end for Brazil-based Vale SA was unchanged on a spread basis, he said, but it took a price hit with the drop in Treasuries.

“Clients are better sellers there as well,” he said.

And the recent issue of notes from Peru’s Union Andina de Cementos SAA (Unacem) – 5 7/8% notes due 2021 that priced at par – traded in a tight range on Friday.

The notes were spotted between 101.55 and 101¾, he said.

BBVA, Deutsche Bank and Scotiabank were the bookrunners for the Rule 144A and Regulation S deal.

Overall, emerging markets bonds ended the week on better footing, a London-based analyst said.

Election, end of QE

Also impacting the picture for emerging markets into the end of the week: Incumbent Brazilian president Dilma Rouseff was elected for another term in office.

“These events are reminders of the difficulties that EM will face in the next few years,” according to a report from Barclays. “Global factors are unlikely to be as supportive as in the past few years, and despite the improvement in macro fundamentals, political and institutional fragility will continue to constrain growth.”

Yasar Holding sells notes

In its new deal, Turkey-based Yasar Holding sold $250 million 8 7/8% notes due May 6, 2020 at par to yield 8 7/8%, a market source said.

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

New World China does deal

On Thursday, New World China Land Ltd. sold RMB 900 million 5 3/8% notes due Nov. 6, 2019 at 99.676, a market source said.

BOC International, HSBC, BofA Merrill Lynch and Citigroup were the bookrunners for the Regulation S deal.

New World China Land is the mainland China flagship property company of Hong Kong-based developer New World Development Co. Ltd.

Cagamas issues bonds

On Wednesday, Malaysia’s Cagamas Bhd. priced HK$1.5 million 1.88% notes due May 8, 2018 at par to yield 1.88%, a market source said.

HSBC was the bookrunner for the deal.

Cagamas is a mortgage company based in Kuala Lumpur.

© 2015 Prospect News.
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