GarantiBank sells notes; Eros cancels deal amid controversy; Nemak on deck; Helios popular

By Christine Van Dusen

Atlanta, March 9 – Turkey’s Turkiye Garanti Bankasi (GarantiBank) and China’s KWG Property Holding Ltd. sold notes on a “remarkably solid” Thursday for emerging markets assets, a London-based analyst said.

“As we head closer to tomorrow’s job market data report and next week’s FOMC meeting, market sentiment has turned somewhat softer, with rates selling off and the dollar firming up,” he said. “EM credit still remains remarkably solid so far, but undeniably looks prone, should the change in tone lead to fund outflows.”

Also on Thursday, the Governing Council of the European Central Bank met and E.U. member countries were holding a two-day summit.

“With Brexit, potential trade barriers, a new bailout program for Greece and diverging views across E.U. countries on the bloc’s future, there are enough challenges to tackle,” the analyst said.

The new issue of notes from Turkey’s Akbank TAS received some attention in trading on Thursday.

The $500 million issue of 7.2% notes due March 16, 2027 priced Wednesday at par to yield 7.2%, or mid-swaps plus 502.6 basis points, following talk in the 7½% area.

“Despite the softer market context, the deal attracted a $2.2 billion book,” the analyst said.

BofA Merrill Lynch, Citigroup, Goldman Sachs, HSBC, Societe Generale CIB and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.

On Thursday morning the new notes were seen at about 100.70 bid, 101 offered. At mid-afternoon in New York, the notes were spotted at 100¾ bid, 101 offered.

Also on Thursday, India’s Eros International Media Ltd. postponed a dollar-denominated issue of notes and Mexico’s Nemak SAB de CV advanced plans for a euro deal.

Cameroon eyed

Some investors were keeping an eye on Cameroon as the sovereign started discussions with the International Monetary Fund about a three-year economic program.

“The fund said that the medium-term economic outlook remains positive on the back of a relatively diversified economy and with several key infrastructure projects coming on-stream,” the analyst said.

Still, the fund was concerned with “the rapid increase in public debt and highlighted a need to reduce the pace of new borrowing,” he said.

GarantiBank sells bonds

In its new deal, Turkey’s GarantiBank priced a $500 million issue of 5 7/8% notes due March 16, 2023 at par to yield 5 7/8%, a syndicate source said.

The notes were talked at a yield in the 5 5/8% to 6% area.

BBVA, Citigroup, Goldman Sachs, JPMorgan, MUFG and SMBC Nikko were the bookrunners for the Rule 144A and Regulation S deal.

GarantiBank is a lender based in Istanbul.

New deal from KWG

China’s KWG Property priced $400 million 6% notes due Sept. 15, 2022 at par to yield 6%, according to a company filing.

Goldman Sachs, HSBC, Morgan Stanley and Standard Chartered Bank were the bookrunners for the Regulation S offering.

The proceeds will be used to refinance existing debt.

KWG Property is a developer based in Guangzhou, China.

Eros postpones

India’s Eros International Media has postponed plans for a five-year issue dollar-denominated notes, according to a company announcement.

The company blamed a change in current credit market conditions, as well as allegations made on a short-selling website, the announcement said.

“A short-selling website republished certain allegations made in a lawsuit from an anonymous person about purported events that occurred several years before Eros International plc went public on the NYSE,” the announcement said. “The lawsuit and all of its allegations are completely baseless and without merit, and the court is currently considering its dismissal. For over a year, short-sellers have spread false claims about the company to manipulate its stock, and these false claims have been repeated in meritless lawsuits.”

The notes had been talked in the 8¼% area.

Barclays and Deutsche Bank were the joint bookrunners. Jefferies was the lead manager.

Eros International is a Mumbai maker of movies.

Nemak plans notes

In other news, Mexico’s Nemak is planning to issue €500 million notes due in seven years, according to a company announcement.

JPMorgan, BNP Paribas and Morgan Stanley are the bookrunners for the Rule 144A and Regulation S deal.

Nemak is a global automotive parts manufacturing company based in Garcia, Greater Monterrey, Mexico.

Helios draws orders

Helios Towers Africa LLP’s new $600 million issue of 9 1/8% notes due in 2022 was over three times oversubscribed, a market source said.

BofA Merrill Lynch, Standard Bank and Standard Chartered were the bookrunners for the Rule 144A and Regulation S deal.

The notes will be non-callable for two years.

Other details were not immediately available on Thursday.

The telecommunications company is London-based and Africa-focused.

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