ACWA Power to price $600 million bond on Wednesday; eyes on FOMC meetings throughout week

By Colin Hanner

Chicago, May 2 – With much of the world returning to work following holidays, those in tune with emerging markets will turn to the Federal Open Market Committee meetings, a market source said.

“Tomorrow’s decision is unlikely to bring any changes, but bets remain on a 25 basis points hike in June,” the market source said.

In the geopolitical realm, much of the focus is turned to the seemingly worsening U.S. and North Korea animosity as President Trump meets with several world leaders ahead of the G20 summit.

France will hold its second and final round of voting on Sunday whose results could have reverberations felt throughout the world. Currently, Emmanuel Macron leads Marine Le Pen in recent polls.

ACWA expecting benchmark deal

Saudi Arabia’s ACWA Power Management and Investments One Ltd., a Riyadh-based company that provides electricity and desalination services, is expected to price a $600 million senior secured bond due 2039 on Wednesday, a market source said.

Initial price guidance is in the 6¼% area, the market source said.

The notes have an assumed rating of Baa3 from Moody’s Investors Service and a BBB- rating from S&P Global Ratings.

Citi and Jefferies are global coordinators and bookrunners for the Rule 144A and Regulation S deal. CCB Singapore, Mizuho, NCB Capital and Standard Chartered Bank are also bookrunners for the deal.

Middle East sovereigns

The continuing decline in worldwide oil future prices had mixed effects for sovereign bonds in the Middle East, a trend that continues into the shortened week.

Saudi Arabia’s 2 3/8% notes due 2021 were up 7 bps to a 98.27 bid, 98.42 offer to close the session.

Its 3¼% notes due 2025 were up 2 bps to a 97.62 bid, 97.87 offer.

And its 3.628% notes due 2027 were unchanged at a 100.45 bid, 100.55 offer.

In Kuwait, movement was trending the opposite direction.

Its 2¾% notes due 2022 were down 2 bps to a 100.95 bid, 101.05 offer.

And the 3½% notes due 2027 were down 13 bps to a 102.31 bid, 102.56 offer.

© 2015 Prospect News.
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