Emerging Markets: Slovenia debuts green bond; InPost, Andolu Efes price; Frigorifico eyes deal

By Rebecca Melvin

Concord, N.H., June 25 – Emerging markets sovereign debt was limited to the Republic of Slovenia and the Republic of Panama this past week, while corporate issuance was light albeit varied as markets begin to look toward the typically slower summer season, according to Prospect News’ data.

InPost SA and Anadolu Efes Biracilik ve Malt Sanayii AS, which are rarely seen in the international bond market, were among the week’s corporate issuers. Meanwhile, Frigorifico Concepcion SA, the Paraguayan beef exporter, is in the offing for new bonds to refinance its purchase offer for any and all of its $161 million outstanding 10¼% senior secured notes due 2025. According to a news release, Frigorifico is seeking to amend the terms of the bonds to release the notes’ collateral for the benefit of holders of new notes.

In the sovereign scene, Slovenia priced €1 billion sustainability bonds with a 10-year maturity at 99.554 to yield 0.17%, or a spread of 7 basis points over mid-swaps, according to a market source on Wednesday.

The issue is the sovereign’s debut sustainability bond, but also the sovereign’s third bond priced so far this year.

BNP Paribas, Credit Agricole CIB, Goldman Sachs Bank Europe SE, JPMorgan and Nova KBM were joint bookrunners of the Regulation S transaction.

Credit Agricole acted as sustainability structuring adviser of the notes that are expected to be listed on the Ljubljana Stock Exchange regulated market.

Panama priced a $750 million add-on to its 4½% global bonds due April 16, 2050.

The paper priced on Wednesday at 112.383 and with a yield spread of 165 bps over Treasuries, according to an FWP filing with the Securities and Exchange Commission.

The bonds will constitute a further issuance of $1.2 billion of the bonds issued April 16, 2018 and the $550 million of bonds issued on Oct. 25, 2018.

The bonds are optionally callable with a Treasuries plus 25 bps make-whole premium plus accrued and unpaid interest until Oct. 16, 2049, at which time they are optionally redeemable at par.

HSBC Securities (USA) Inc., Santander Investment Securities Inc. and Scotia Capital (USA) Inc. are the underwriters.

Proceeds will be used for general budgetary purposes.

Among corporate issuers, InPost, a self-service parcel locker company based in Poland, announced it priced an upsized €490 million of 2¼% senior notes due 2027 at par.

The offering, increased from the previously announced €390 million, is expected to close on June 29.

InPost also announced it priced PLN 500 million of floating-rate senior secured bonds due 2027 at par.

This offering was downsized from PLN 800 million, after the company decided to upsize the simultaneously launched euro-denominated offering, which provided an attractive low fixed-rate coupon and favorable financing terms.

The floating-rate bonds will bear interest rate at six-month Wibor plus an initial margin of 250 bps.

The bonds, which will be guaranteed by Integer.pl SA, InPost Paczkomaty sp z oo, Integer Group Services sp z oo and InPost sp z oo, will be issued on July 8.

Proceeds of both offerings will be used, together with drawings under an existing revolving credit facility, to complete InPost’s acquisition of Mondial Relay SAS and for general corporate purposes.

Anadolu Efes, a producer, bottler, seller and distributor of beer and non-alcoholic beverages, based in Istanbul, priced $500 million 3 3/8% seven-year senior notes at 99.23 to yield 3½%, or a spread over Treasuries of 227.8 bps.

Pricing, which occurred on Tuesday, was at the tight end of the 3½% to 3 5/8% guidance and tighter than the 4% area initial price talk.

The notes have a make-whole call at Treasuries plus 35 bps and a three-month par call.

BNP Paribas, Citigroup, HSBC and JPMorgan acted as joint bookrunners of the Rule 144A and Regulation S transaction.

The proceeds will be used to redeem $500 million 3 3/8% notes due 2022, which were issued in October 2012, and for general corporate purposes.

The notes are expected to be listed on the Euronext Dublin.

Global automotive parts manufacturing company, Nemak SAB de CV, based in Garcia, Greater Monterrey, Mexico, priced $500 million 3 5/8% sustainability-linked bonds due June 28, 2031, at par, according to a market source on Thursday.

Pricing was set below initial talk for a yield in the 4% area.

BofA Securities, Citigroup and JPMorgan were active bookrunners, with BBVA, BNP Paribas, HSBC and Sumitomo Mitsui Banking Corp. acting as passive bookrunners.

Proceeds, according to Moody’s Investors Services, will be used to refinance Nemak’s $500 million of 4¾% bonds due 2025.

Also on Tuesday, Export-Import Bank of Korea (Kexim) sold $2 billion of bullet notes in three parts on Tuesday, based on information provided by a market source and an FWP filing with the Securities and Exchange Commission.

The bank sold $750 million of 5/8% three-year notes at 99.947 for a spread of Treasuries plus 20 bps. Pricing came low to talk in the Treasuries plus 45 bps area.

Additionally, a tranche of $750 million of 1 1/8% notes due Dec. 29, 2026 was sold at 99.533. The notes priced with a spread of Treasuries plus 35 bps, low to initial price talk in the Treasuries plus 60 bps area.

A 20-year part of notes was sized at $500 million. The notes came with a 2½% coupon and priced at 99.22 for a spread of Treasuries plus 50 bps, lower than initial price talk in the Treasuries plus 85 bps area.

BofA Securities, Inc, Credit Agricole CIB, Mizuho Securities USA LLC, NH Investment and Securities Co., Ltd., Societe Generale and Standard Chartered Bank are joint bookrunners and lead managers.

Proceeds from the sale will be used for general operations, including extending foreign currency loans and repayment of maturing debt and other obligations.

The lender is based in Seoul.

And looking ahead, Baj Sukuk Tier 1 Ltd. is offering dollar-denominated perpetual sukuk, or Islamic bonds, guaranteed by Bank AlJazira, according to a notice on Thursday.

The Regulation S bonds will be non-callable for five years.

J.P. Morgan Securities plc, Alinma Investment Co. and Aljazira Capital are the banks managing the issue.

The personal banking, investment banking, private banking and asset management services firm is based in Saudi Arabia.

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