Panama prices $1.2 billion; Egypt launches €2 billion deal; two corporates join calendar

By Rebecca Melvin

New York, April 9 – Panama was the latest sovereign to wade into the emerging markets debt capital markets on Monday, pricing $1.2 billion of 2050 bonds at a spread tight to guidance of U.S. Treasuries plus 150 basis points, according to a market source.

“The Panama deal went really well and they took advantage of a great market window. The decision to price a new bond right in the middle of their outstanding 2047 and 2053s was very good given how flat that curve is,” a New York-based market source said.

Also on Monday, the Arab Republic of Egypt launched €2 billion of notes, evenly divided between two tranches of eight- and 12-year maturities.

Pricing on the Egypt eight year notes was set at 4¾%, which was the tight end of 4¾% to 4 7/8% final guidance, trimmed from earlier guidance at 5% area and initial price talk of low 5% area.

The 12-year notes priced at 5 5/8% yield, which was the tight end of 5 5/8% to 5¾% final guidance and lowered from earlier guidance of 5 7/8% and initial price talk in the 6% area.

Two corporate issuers also joined the calendar, including FirstRand Bank Ltd.’s inaugural dollar deal for 10-year non-call five-year tier 2 subordinated notes (expected rating: Ba2). Also scheduled to start a roadshow is Turkish real estate developer and investment company Ronesans Gayrimenkul Yatirim AS, which is eyeing a five-year dollar benchmark notes offering being marketed under Rule 144A and Regulation S subject to market conditions.

The Ankara-based commercial real estate development and investment company is jointly owned by Ronesans Group and Government of Singapore Investment Corp.

In secondary market news, the bonds of several Russian corporates were under fire after the U.S. Treasury on Friday named seven Russian oligarchs and 12 companies that they control as well as 17 senior government officials as targets of new sanctions, which were imposed in response to what it described as “malign activity” around the globe.

United Co. Rusal plc is among the sanctioned companies, and it has three bonds listed on the Irish Stock Exchange and for which storage is provided by the International Depository Clearing Co. Euroclear, which said it is assessing the new sanctions. Most recently Rusal priced $500 million of 4.85% five-year notes that priced in January.

Panama prices bonds due 2050

The new long bonds priced at 99.569 to yield 5.26%, or a yield spread of U.S. Treasuries plus 150 bps, according to a market source.

Pricing of the new paper came at the tight end of guidance after being trimmed from initial price talk of U.S. Treasuries plus 175 bps.

“We spotted the 2047’s at Treasuries plus 135 bps and the 2053s at Treasuries plus 136 bps ahead of the announcement,” a market sources said. “The deal priced at Treasuries plus 150 bps, effectively with a 15 bps new issue concession, which is very competitive pricing given the heightened volatility environment for U.S. dollar [deals].”

“I was expected a larger print size in terms of their overall funding needs for 2018,” he added.

The sovereign is using proceeds for refinancing, repurchase and retirement of sovereign debt and general budgetary purposes.

Citigroup and Deutsche Bank were the bookrunners for the Securities and Exchange Commission-registered deal.

Egypt prices €2 billion

Egypt launched €2 billion of notes on Monday, a restrained amount given order books at the time of final guidance stood at €7.2 billion.

Banca IMI, BNP Paribas, Deutsche Bank, and Standard Chartered Bank are bookrunners of the Rule 144A and Regulation S deal.

RGY eyes dollar notes

Ronesans Gayrimenkul Yakirim will start a roadshow on Wednesday, and meetings will wrap up the following Monday for a five-year dollar-denominated offering.

BNP Paribas, HSBC, and J.P. Morgan will arrange a series of fixed-income investor meetings in Europe and the United States starting April 11 and concluding April 16.

FirstRand plans dollar deal

The Johannesburg-based banking and financial services company is looking to price its first dollar deal, a subordinated tier 2 note 10-year note with a call at year five.

The Regulation S only deal being sold via BNP Paribas, HSBC, J.P. Morgan and Rand Merchant Bank as joint lead managers and bookrunners.

Roadshow meetings are slated to begin April 11.

© 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.