Angola prices $500 million tap of 2048 notes; Dominican Republic 2028 notes trade well

By Rebecca Melvin

New York, July 16 – Emerging markets debt has shown signs of life despite an onslaught in recent weeks related to U.S. dollar strength, currency woes and international trade war worries, among other things.

The Republic of Angola on Monday launched and priced a $500 million tap of its 9 3/8% notes due 2048 on Monday at 102.76 to yield 9.1%, according to a syndicate source.

The launch pricing was tight compared to initial price talk earlier Monday in the area of 9.3%.

Goldman Sachs International (global coordinator), Deutsche Bank and ICBC are joint lead managers and bookrunners for the Rule 144A and Regulation S deal.

The new notes will be consolidated and form one series with the initial 2048 notes, which priced on May 2 and of which there is $1.25 billion outstanding. They will be admitted to the official list of the UK Listing Authority for trading on the London Stock Exchange’s regulated market.

In secondary action, a market player pointed to continued strength in the new Dominican Republic 6% notes due July 2028, which priced last Thursday.

“From a market standpoint, the Domrep deal tells us there is appetite to add exposure despite consecutive weeks of outflows. The deal is performing very well in the secondary,” the New York-based market source said.

The $1.3 billion 10-year deal priced at par on Thursday, on top of yield talk and inside of guidance in the 6¼% area, sources said.

On Monday the Dominican Republic 2028s were bid at 101.077, which is a yield of about 5.85%, and with a 10 basis points curve to the outstanding 2027 notes with a 5¾% yield.

The 2028s have compressed all of the concession offered versus the curve, which shows there was follow through demand, the source said.

Also pricing last week for the Latin America region was a Cemig Geracao e Transmissao SA add-on to its 9¼% bonds due December 2024. Those bonds were also seen tighter in Friday trading.

The $500 million tap priced at 100.5 on Thursday.

Whether these deals are deemed good indicators of favorable conditions in the new issue market and pave the way for other deals such as Empresas CMPC SA is “tough to say,” the source said.

It was not obvious what variables Chile’s CMPC, a pulp and paper company, is monitoring for doing a deal, the source said.

There were no other announcements heard for Latin America so far this week.

© 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.