Credit Bank of Moscow joins calendar; Sappi prices; AES Gener, Petrobras, Cemex on tap

By Rebecca Melvin

New York, March 12 – A number of corporate issuers were in the emerging markets debt market on Tuesday to price new deals as conditions for supply improved.

Credit Bank of Moscow announced that it has selected banks and is taking its planned dollar-denominated notes offering on the road, returning to the U.S. currency after pricing a euro-denominated note last month.

Commercial lender Credit Bank of Moscow was last in the international bond market with a €500 million deal of 5.15% five-year loan participation notes at a spread of 502.5 basis points over mid-swaps. The mid-February deal was distributed under Rule 144A and Regulation S and had an order book of more than €800 million.

South Africa’s Sappi Papier Holding GmbH priced €450 million of 3 1/8% seven-year notes after announcing the deal on Monday. The proceeds will be used to redeem all of the company’s outstanding €450 million senior notes due 2022.

The new notes are non-callable for three years. The existing 2022 notes will be redeemed on April 10 at 100.844 plus accrued interest from April 1.

Likewise, Chile’s AES Gener SA was selling $450 million junior subordinated (hybrid) notes due 2079 to refinance its existing $450 million 8 3/8% hybrid notes due 2073.

Meanwhile, Petroleo Brasileiro SA (Petrobras) announced and launched a mega $3 billion of new notes, including $2.25 billion of new 30-year notes and a $750 million tap of its existing 5¾% global notes due 2029. The deals are pricing concurrently with tenders for existing series of dollar- and euro-denominated notes.

Pricing of the 2049 notes with a 6.90% yield is at the tight end of talk for a yield in the low 7% area, and pricing of the 5¾% 2029 notes to yield 5.95% was tight to talk for yield in the area of 6.05%.

The 5¾% notes will be added to the existing $1.9 billion of the notes issued on Feb. 1, 2018.

Petrobras is also making cash tender offers to repurchase several outstanding dollar- and euro-denominated notes due 2021 through 2025.

BNP Paribas Securities Corp., Banco Bradesco BBI SA, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and Santander Investment Securities Inc. are acting as joint bookrunners for the new notes (expected ratings: BB-/B-) and as lead dealer managers with respect to the tender offers, and ABN Amro Securities (USA) LLC, BBVA Securities Inc. and Commerz Markets LLC are acting as co-managers with respect to the new notes and as co-dealer managers for the tenders.

The proceeds of the new notes will be used to repurchase the tendered notes and for general corporate purposes.

Meanwhile, Monterrey, Mexico-based cement company, Cemex SAB de CV was talking a €400 million note due 2026 on Tuesday with final yield set at 3 1/8%.

The Rule 144A and Regulation S Cemex notes are non-callable until 2022 and were being sold by BofA Merrill Lynch, BNP Paribas Securities Corp., Citigroup and Santander.

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