Colombia plans new 2049 notes, tap of 2029s; Venezuela gains as Guaido claims presidency

By Rebecca Melvin

New York, Jan. 23 – Emerging markets debt saw a little bit more activity on Wednesday than in the prior session, with Colombia announcing that it is planning to price a new issue of U.S. dollar-denominated global notes due 2049 and a tap of its 4½% global bonds due 2029.

In the secondary market, Venezuela bonds gained on Wednesday after the country’s opposition leader Juan Guaido declared himself interim president while hundreds of thousands of Venezuelans rallied in street protests against the leadership of current socialist President Nicolas Maduro.

Shortly after Guaido’s surprise announcement, U.S. President Donald Trump threw his backing behind the 35-year-old congressman, with the governments of Canada, Brazil, Colombia and others following suit, and leaving Venezuela in the unusual position of having two presidents.

Investors bought bonds, which have been in the 20 to 30 range through most of the curve, apparently enthusiastic about the idea of ousting Maduro, who has led a regime that has left the country wracked by economic and humanitarian crises, reduced oil output, debt default, hyperinflation and the exodus of about three million Venezuelans abroad.

Venezuela’s benchmark 2027 bonds rose to 31.5 on Wednesday, which was up more than three points on the day and near its highest level in seven months.

Back in primary market action, Dubai Investments Park Development Co., a subsidiary of Dubai Investments PJSC, said it has mandated banks and scheduled a roadshow for a planned five-year Islamic bond, or sukuk.

Citigroup, Dubai Islamic Bank, NBD Capital, First Abu Dhabi Bank and HSBC are joint lead managers and joint bookrunners of the Dubai-based developer’s Regulation S deal.

In new paper, Korea’s Hanwha Total Petrochemical Co. Ltd. has issued $400 million of 3 3/8% senior notes due 2024 (Baa1/BBB).

Lead managers and bookrunners of the Regulation S deal for Korea’s lead petrochemicals producer were Citigroup Global Markets Ltd., Credit Agricole CIB and Standard Chartered Bank.

Proceeds will be used for general corporate purposes, including repaying debt and capital spending.

Also, Philippines’ Asian Development Bank said it has priced £500 million of new floating-rate notes due 2022 at par on Wednesday to yield a spread of 26 basis points over the sterling overnight index average, according to a syndicate source.

HSBC, RBC Capital Markets and TD Bank are bookrunners for the Regulation S deal.

The issuer is a development bank based in Manila.

And Zhenro Properties Group Ltd. priced a $150 million add-on to its 10½% senior notes (B3/B-) due 2020, according to an announcement.

Zhenro originally priced $250 million of the 10½% notes on June 28, 2018.

The company is a real estate developer and property manager based in Shanghai.

The iShares JPMorgan U.S. dollar emerging markets sovereign bond ETF was up 0.5 point for the day, extending gains for a sixth day. So far this year, the ETF has risen 3%.

In the broader markets, global stocks were mostly lower, but there were pockets of strength with China and Korea’s major indexes up.

© 2015 Prospect News.
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