Uruguay, Bimbo, UzAuto Motors bring notes to market as LimakPort, Atlantida eye deals

By Rebecca Melvin

Concord, N.H., May 14 – Emerging markets delivered a steady flow of new bond deals during the past week, including both sovereign and corporate issues.

The Republic of Uruguay priced a dual-currency, dual-tranche offering of notes this past week including Ps. 51,332,112,000 8¼% global bonds due May 21, 2031 and a $400 million add-on to its 4 3/8% bonds due Jan. 23, 2031.

The 8¼% global bonds priced at par and the $400 million add-on to the 4 3/8% bonds priced at 114.783 for a reoffered yield of 2.454%, or a spread over U.S. Treasuries of 80 basis points.

There are $2,441,342,673 principal amount of the bonds outstanding, with an initial $1.25 billion issued on Jan. 23, 2019 and add-on tranches issued on Oct. 2, 2019 and July 2, 2020.

BofA Securities, Inc., HSBC Securities (USA) Inc. and Santander Investment Securities Inc. are joint bookrunning managers of both tranches.

Bimbo taps market

A 30-year note was brought by Bimbo Bakeries USA Inc. The unit sold $600 million of 4% senior notes due May 17, 2051. The notes are guaranteed by Grupo Bimbo SAB de CV and Grupo Bimbo subsidiaries Bimbo SA de CV and Barcel SA de CV.

The notes priced with a Treasuries plus 168 bps spread, which was tight to talk that was in the Treasuries plus 190 bps area, according to a market source.

HSBC, JPMorgan, Mizuho and Santander are bookrunners of the deal, for which proceeds will be used to repay Grupo Bimbo debt.

The issuer is the U.S. corporate arm of the Mexican multinational bakery company and based in Horsham Township, Pa.

UzAuto active

Meanwhile, from Uzbekistan, automaker UzAuto Motors sold $300 million of 4.85% notes with a five-year tenor (B+/B+), according to a company notice.

At launch, the notes were being talked with a 5% to 5 1/8% coupon, tightened from initial guidance at 5 3/8%.

Over 130 accounts received allocations, with the order books peaking at $1.4 billion.

The Rule 144A and Regulation S notes were sold by Citigroup, MUFG, Natixis and Raiffeisen Bank International. And proceeds, according to Fitch Ratings, will be used for general corporate purposes.

Other supply

Gauging a jumping-in point, Turkey’s Limak Iskenderun Uluslararasi Liman Isletmeciligi AS (LimakPort) is pricing $360 million of senior secured notes due in 15 years (expected rating: B3//BB-), according to a notice published by the London Stock Exchange.

UBS AG and BofA Securities are managers of the deal.

According to Moody’s Investors Service, the proceeds are expected to be used to refinance LimakPort's senior secured debt, pay down some but not all the shareholder loans, pay transaction fees and pre-fund reserve accounts as required under the terms of the proposed notes.

The port operator is based in Turkey.

And from Latin America, Honduras’ Inversiones Atlantida is marketing a $300 million offering of five-year senior secured notes (B+/B) with initial price talk in the 7¾% area, according to a market source.

Pricing was expected as early as Friday.

Oppenheimer & Co. Inc. is the bookrunner for the Rule 144A and Regulation S deal.

The notes have two years of call protection.

Proceeds will be used to repay outstanding notes, to strengthen the company’s capital base and for general corporate purposes, including selected investments and expansion of the business.

Atlantida is a financial services company based in Tegucigalpa, Honduras.

Other notable deals included an upsized $850 million of 4½% green subordinated perpetual securities (BB/BB+) priced on Tuesday by GLP Pte. Ltd. The notes were upsized from a target size of $500 million.

The offer was more than six times oversubscribed.

This is GLP’s first issue in the international market in more than five years.

Proceeds from the Regulation S issue will be used to refinance eligible green projects.

The notes are not callable for the first five years. The rate steps up 25 bps in year 10 and then another 50 bps from year 25.

Citigroup Global Markets Singapore Pte. Ltd., DBS Bank Ltd., Deutsche Bank AG, Singapore Branch, Goldman Sachs (Singapore) Pte. and Mizuho Securities Asia Ltd. are acting as joint bookrunners and joint lead managers for the offering.

GLP is a global investment manager and business builder in logistics, real estate, infrastructure, finance and related technologies. Headquarters are in Singapore.

More from Asia included Indonesia’s PT Sarana Multi Infrastruktur (Persero), which priced $300 million of 2.05% notes due 2026 (//BBB), according to a Singapore Exchange listing notice.

The Regulation S notes were sold via Merrill Lynch (Singapore) Pte. Ltd., DBS Bank Ltd., MUFG Securities Asia Ltd. Singapore Branch, Mandiri Securities Pte. Ltd. and Standard Chartered Bank (Singapore) Ltd. as lead managers and bookrunners.

The notes will be listed and quoted in the bonds market effective on Wednesday.

The Indonesian state-owned enterprise provides infrastructure development finance.

Green financing

And green or environmental, social and corporate governance debt continued to feature prominently in the EM debt market as it has been across the investment universe.

Investment Energy Resources Ltd. sold a $700 million green bond with a 6¼% coupon due 2029 (Ba3/BB-/BB-), according to a press release.

This was the inaugural issue for the company.

The notes are guaranteed by substantially all of the subsidiaries of IERL that own energy generation facilities and secured by the pledge of common stock of substantially all of such subsidiaries.

Citigroup Global Markets Inc. and JPMorgan were the initial purchasers for the Rule 144A and Regulation S notes.

Proceeds were used to repay existing project finance debt.

IERL also got a new $440 million term loan.

The company is the holding company of CMI Energia, which operates a portfolio of over 800MW of renewable assets in Central America, and is based in Guatemala.

China’s ENN Clean Energy International Investment Ltd. sold $800 million of 3 3/8% notes due May 12, 2026 (Ba1//BBB-) at 99.658, according to an offering memorandum.

The notes are unconditionally and irrevocably guaranteed by ENN Natural Gas Co., Ltd.

The notes can be redeemed with a make-whole premium of Treasuries plus 100 bps until May 12, 2024. Starting with that May 2024 date, the notes can be redeemed at 101.688 and then after May 12, 2025 at 100.844.

Morgan Stanley, Citigroup, Standard Chartered Bank, Natixis and Deutsche Bank are the global coordinators and are joined as bookrunners and lead arrangers by China Citic Bank International, BNP Paribas, UBS, China Everbright Bank Hong Kong Branch, CMB International, Mizuho Securities, JPMorgan, Bocom International and CCB International.

Proceeds will be used to repay existing debt.

ENN Ecological Holdings is a Langfang, China-based company engaged in the clean energy industry

Property developers

China’s property developers were as busy as ever. Country Garden Holdings Co. Ltd. priced $500 million of additional 3 1/8% senior notes due Oct. 22, 2025 (Baa3//BBB-) at 100.113, according to a company announcement.

The notes will be consolidated and form a single series with the $500 million of 3 1/8%notes due 2025 issued on Oct. 22, 2020.

Morgan Stanley & Co. International plc, UBS AG Hong Kong Branch, J.P. Morgan Securities plc, Goldman Sachs (Asia) LLC, BNP Paribas, Hongkong and Shanghai Banking Corp. Ltd., Standard Chartered Bank and CLSA Ltd. are joint global coordinators, joint lead managers and joint bookrunners for the Regulation S tap issue.

Proceeds will be used to refinance existing medium- to long-term offshore debt set to mature within one year.

The real estate developer is based in Foshan, China.

And Yanlord Land (HK) Co., Ltd., a wholly owned subsidiary of Yanlord Land Group Ltd., sold $500 million of 5 1/8% green senior notes due May 20, 2026 (Ba3), according to an announcement.

DBS Bank Ltd., HSBC Ltd. and Standard Chartered Bank (Singapore) Ltd. were the joint global coordinators.

They were joined by CMB Wing Lung Bank Ltd., Goldman Sachs (Singapore) Ptd., Merrill Lynch (Singapore) Ptd. Ltd., Nomura Singapore Ltd. and UBS AG Singapore Branch as joint bookrunners and joint lead managers.

Proceeds will be used to refinance the company’s debt, including its 2017 senior notes, and also for general corporate purposes.

The issuer is a Hong Kong-based property developer.

Kaisa Group Holdings Ltd. sold $500 million more of its 11.7% senior notes due 2025 (B2//B), bringing the deal size listed on the Singapore Exchange to $1,000,022,000, according to a listing notice on Wednesday.

Credit Suisse, Deutsche Bank, China Citic Bank International, Guotai Junan International, Haitong International, HSBC and UBS are the joint bookrunners and joint lead managers of the new notes.

As previously reported, the notes are callable at par plus a make-whole premium and interest until Nov. 11, 2023. Subsequently they are callable at 104 plus interest until 2024, and then they may be redeemable at 102 plus interest until maturity.

In addition, there is an equity clawback in which the company may redeem up to 35% of the principal amount of notes prior to Nov. 11, 2023 with cash proceeds of one or more common stock sales at 111.7 plus accrued and unpaid interest.

Kaisa is a Shenzhen, China-based property development company.

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