Primary sees deals from Gruma, HDB, Moscow bank, Angamos; Petrobras, Ukraine in focus

By Christine Van Dusen

Atlanta, Nov. 21 – Mexico’s Gruma SA de CV, Singapore’s Housing and Development Board, Russia’s Credit Bank of Moscow and Chile-based Empresa Electrica Angamos SA sold notes on a more positive day for emerging markets assets.

Though some bonds suffered at the start of the week, those from the Latin America corporate market firmed up as the week went on as some investors thought the market was turning a corner, a New York-based trader said.

Bonds from Brazil-based Petroleo Brasileiro SA tightened another 20 basis points into the close on Friday on the news that one of its offshore oil platforms became operational this week.

“Flows were markedly one-way as volumes ramped up again after taking a little breather yesterday,” a New York-based trader said.

Similarly, bonds from Brazil-based Vale SA also narrowed on Friday amid better sentiment in Brazil, he said.

Vale’s bonds closed as much as 15 bps tighter on Friday, he said.

“Much better buying seen through most account bases,” he said.

Taking a look at corporate bonds from Colombia, flows were two-way on Friday and traded better than in previous days, he said.

Looking to Ukraine, sovereign bonds rallied into the end of the week, even as trouble continued in the East and Russia-supporting rebels were reportedly violating ceasefires. U.S. Vice President Joe Biden visited Ukraine during the week for talks with President Petro Poroshenko.

“Diplomatic headlines are not showing much progress,” said Svitlana Rusakova of Dragon Capital, “but are nevertheless seen positively as a step towards possible negotiations.”

This “lack of new negative developments” seemed to trigger some short-covering, she said.

“Quasi-sovereigns rose in line with the sovereign, but corporates remained very weak,” she said.

Gruma sells bonds

In its new deal, Mexico’s Gruma priced $400 million 4 7/8% notes due Dec. 1, 2024 at 99.899 to yield Treasuries plus 255 bps, a market source said.

Goldman Sachs and Santander were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds from the new issue will be used to redeem the company’s perpetual bonds and to pay debt.

Gruma, based in Monterrey, Mexico, is involved in the production, marketing, distribution, and sale of corn flour, packaged tortillas and wheat flour.

Singapore issuer prints notes

Singapore’s Housing and Development Board sold S$600 million 3.22% notes due Dec. 1, 2026 at par to yield 3.22%, a market source said.

OCBC was the sole bookrunner for the Regulation S issue.

Moscow bank prices bonds

Russia’s Credit Bank of Moscow priced RUB 5 billion 16½% notes due May 26, 2025 at par to yield 16½%, a market source said.

Otkritie, Region and Sberbank CIB were the bookrunners for the Regulation S deal.

Angamos sells notes

Chile-based Angamos priced an $800 million issue of 4 7/8% notes due May 25, 2029 at 98.528 to yield 5.086%, or Treasuries plus 275 bps, a market source said.

The notes were talked at a spread of Treasuries plus high-200 bps to 300 bps.

Citigroup, HSBC, JPMorgan, Itau, Scotia Capital and Sumitomo were the bookrunners for the Rule 144A and Regulation S deal.

The issuer is a Santiago-based thermal power plant operator and subsidiary of Inversiones Nueva Ventanas SA.

Issuance from mBank

On Thursday, Poland’s mBank sold €500 million 2% notes due Nov. 26, 2021 at 99.413 to yield mid-swaps plus 145 bps, a market source said.

Barclays, Commerzbank, Credit Suisse and JPMorgan were the bookrunners for the deal.

The lender is based in Lodz.

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