Emerging markets see pricing from VimpelCom, Afreximbank, PetroPeru, Dominican Republic

By Rebecca Melvin and Colin Hanner

New York, June 13 – Emerging markets were awash in new paper on Tuesday, a day ahead of an expected rate hike by the U.S. Federal Reserve that could raise the U.S. target interest rate to 1% to 1¼%.

VimpelCom Holdings BV launched $1.5 billion of notes in two tranches of four and seven years. The coupon for the shorter-dated paper was 3.95% and for the longer-dated tranche was 4.95%, according to a syndicate source.

African Export-Import Bank (Afreximbank) priced a $750 million deal of seven-year notes at 99.459 to yield 4.215%, or mid-swaps plus 220 basis points, a market source said.

In Asia, China Everbright Bank Co. Ltd., priced $500 million three-year floating-rate notes and Shui On Land Ltd. sold $600 million 6.4% senior perpetual capital securities at par. Both deals priced on Monday.

On Tuesday China Merchants Bank Co., Ltd. sold $800 million three-year floating-rate notes.

In Latin America, the Republic of Chile priced $1.243 billion of 3.86% 30-year senior notes at 99.841 to yield 3.869%, and the sovereign also priced a €700 million tap of its outstanding 1 7/8% euro-denominated notes due 2030.

The Dominican Republic launched and priced an offering of $500 million 5.95% 10-year notes (B1/BB-/BB-).

Meanwhile, $2 billion of Petroleos del Peru SA notes debuted in the secondary market after pricing late Monday.

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