BRF mulls dollar deal; longer duration paper losing luster ahead of Fed, banker says

By Paul A. Harris

Portland, Ore., Sept. 15 – Sovereign paper tended to be a touch wider, heading out on Thursday, a market source said.

The iShares JPMorgan USD Emerg Markets Bond (EMB) ETF was 0.42% higher on the day, Tuesday, at $115.68 per share, up 48 cents.

As investors await the upcoming Federal Open Market Committee’s meeting next week, the appetite for long-duration bonds is diminishing, according to a debt capital markets banker in London who added that even if next week’s Fed meeting does not produce an increase in the Fed Funds rate, investors seem reconciled to the idea that it will increase before the end of the year.

BRF mulls dollar deal

BRF GmbH, a wholly owned subsidiary of Brazil’s BRF SA (Ba1/BBB) is contemplating a Rule 144A and Regulation S dollar-denominated notes offer, having met with fixed-income investors in the United States earlier in the week, according to a market source.

The opening of books hinges upon market conditions, the source added.

BB Securities, Bradesco, Itau, JPMorgan and Santander have the mandate.

BRF received and accepted for purchase tenders of $32.18 million of its 5 7/8% senior notes due 2022 and $54.21 million of its 7¼% guaranteed senior notes due 2020 issued by BFF International Ltd., according to a Wednesday press release.

The tender offers began on Sept. 7 and ended at 12 p.m. ET on Sept. 14.

BRF is a food company based in Itajai, Brazil.

Global Ports

The stabilization period for a Global Ports (Finance) plc dollar-denominated seven-year notes (Ba3//BB) offer is scheduled to begin today, according to a Thursday stabilization notice from stabilization coordinator JP Morgan Securities plc.

ING, Raiffeisen Bank International, Sberbank CIB, UniCredit and VTB Capital are also stabilization managers.

Global Ports is a Limassol, Cyprus-based container terminal operator serving Russian cargo flows.

Afreximbank tap

Afreximbank, the African Export-Import Bank (Baa2//BBB-), priced a downsized $150 million add-on to its 4% notes due May 24, 2021 at a 250 basis points spread to mid-swaps on Wednesday, according to a market source.

The deal size was decreased from $250 million.

The spread came on top of spread talk.

The notes were sold at a reoffer price of 101.324 and will yield 3.688%.

The issuer is a Cairo-based international bank which specializes in trade-related financing for Africa.

© 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.