Deals from ADB, Sigma Alimentos; upbeat comments from Fed give EM assets a boost; Ghana widens

By Christine Van Dusen

Atlanta, Feb. 2 – Philippines’ Asian Development Bank (ADB) and Mexico’s Sigma Alimentos SA de CV sold notes on a solid Thursday for emerging markets assets, as Federal Reserve officials remained optimistic about the U.S. economy.

Also on Thursday, Argentina’s Compania Latinoamericana de Infraestructura & Servicios SA (Clisa) was on a roadshow and Brazil’s Rumo Logistica Operadora Multimodal SA set talk for an upcoming deal.

“Despite the many central bank meetings this week, markets have turned their attention to politics,” a London-based analyst said. “Monetary policymakers are waiting for further signals and more clarity, with the Fed being no different. Fed Chair Yellen and her colleagues remained upbeat on the U.S. economy, but yesterday’s meeting did not reveal any timing for the next move, with markets expecting a hike around mid-year.”

In trading, bonds from Ghana have widened by 20 basis points on the news of an undisclosed $1.6 billion-equivalent expenditure that could push the country’s 2016 budget deficit close to double digits.

“The focus is now certainly on talks between the new government and the IMF that will take place later in the month,” the analyst said.

Market-watchers were also whispering about Paraguay, which could issue up to $550 million of bonds in March.

In its new deal, Mexico-based branded foods producer and distributor Sigma Alimentos priced €600 million 2 5/8% notes due Feb. 7, 2024 at 99.628 to yield mid-swaps plus 275.3 bps, a syndicate source said.

The notes were talked at a spread of 250 bps to 262.5 bps.

BNP Paribas, JPMorgan, MUFG and Rabobank were the bookrunners for the Rule 144A and Regulation S deal.

Issuance from ADB

In another new deal, Philippines’ ADB priced €520 million notes due February 2037 at 99.223 to yield mid-swaps plus 3 bps, according to a company announcement and a market source

JPMorgan, Citigroup and Deutsche Bank were the bookrunners for the Regulation S deal.

Other details were not immediately available on Thursday.

ADB, based in Manila, focuses on reducing poverty in Asia and the Pacific through economic growth, environmentally sustainable growth and regional integration.

Rumo gives guidance

Brazil’s Rumo Logistica set talk in the high-7% area for a dollar-denominated issue of notes due in seven years, a market source said.

BB Securities, Bradesco, BTG Pactual, Itau, Morgan Stanley and Santander are the bookrunners for the Rule 144A and Regulation S deal.

The logistics company and rail operator is based in Curitiba, Brazil.

Clisa on roadshow

Argentina’s Clisa is on a roadshow for a tap of its 9½% notes due in 2023, a market source said.

BCP Securities and Santander are the bookrunners.

The roadshow started Jan. 31 and is set to end on Friday.

Clisa is a Buenos Aires-based infrastructure manager and developer.

Entre Rios draws orders

The new deal from the Argentine province of Entre Rios – a $350 million issue of 8¾% notes due 2025 that priced Wednesday at 98.726 to yield 9% – drew a final order book of $800 million, a market source said.

Citigroup, HSBC and Santander were the bookrunners for the transaction.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.