Landmark emerging market deals of 2010

MEXICO

Issuer: Mexico

Date: Oct. 5

Size/Structure: $1 billion 5¾% notes due Oct. 12, 2110 priced at 94.276 to yield 6.1%, or Treasuries plus 235 basis points.

Proceeds: For general government purposes, including the refinancing, repurchase or retirement of domestic and external debt.

Lead banks: Deutsche Bank, Goldman Sachs

• Unusual for its 100-year tenor.

• Largest-ever century bond.

• The first Latin American sovereign to issue a century bond.

• Issuer has not demonstrated an ability to repay long-dated debt.

• Noteworthy yield for a sovereign, given market conditions.

• Indicative of investors' healthy appetite for risk

PERU

Issuer: Republic of Peru

Date: Nov. 10

Size/Structure: $2.5 billion-equivalent two-part offering, including $1 billion 5 5/8% notes due Nov. 18, 2050 priced at 96.164 to yield 5 7/8%, or Treasuries plus 160.3 bps.

Proceeds: To reimburse Peru's Public Treasury and about $63 million in connection with the financing and tender offer of global bonds from April and to pre-finance a portion of the general financial requirements for the year 2011.

Lead banks: Bank of America Merrill Lynch, Morgan Stanley

• Second-longest tenor for a global bond from Latin America.

• The sovereign's longest-maturity overseas bond to date.

• Low coupon for an issue of its tenor.

• Priced during window of opportunity, liquidity- and interest rates-wise.

ARGENTINA

Issuer: Republic of Argentina

Date: June 2

Size/Structure: About $738 million 8¾% fixed-rate notes due June 2, 2017 priced at 90.11 as part of the sovereign's debt restructuring:

Lead banks: Barclays Capital, Citigroup, Deutsche Bank

• Marked the sovereign's return to the debt markets.

• Made possible by the sovereign's intent to settle more than $29 billion of debts.

• Came at a time of robust fundamentals for the sovereign.

PDVSA

Issuer: Petroleos de Venezuela SA (PDVSA)

Date: Oct. 18

Size/Structure: $3 billion bonds due 2017 priced at par to yield 8½%; could be purchased at a rate of 4.3 bolivars to the dollar and then traded in dollars in the secondary market; concurrent with a debt swap of $3 billion 2011 local-law bonds for a new 8% semiannual 2013 Luxembourg law bond.

Proceeds: To finance company's investment plan for government housing projects.

Lead bank: Citigroup

• Added a significant amount of supply.

• Illustrative of Venezuela's tendency to do a lot of issuance.

• Should be a self-sustaining company, given its industry, but is used by the sovereign as a financing vehicle.

STATE BANK OF INDIA

Issuer: State Bank of India

Date: July 22

Size/Structure: $1 billion 4½% notes due July 27, 2015 at 99.708 to yield 5.66%, or Treasuries plus 290 bps.

Proceeds: To fund bank's foreign operations and to support Indian corporates with commercial borrowings.

Lead banks: Bank of America Merrill Lynch, Citigroup, Deutsche Bank, HSBC, RBS, UBS

• Significant for its size.

• Broadened company's investor base.

• Attracted high-quality investors and was 4.8 times oversubscribed.

SLOVAKIA

Issuer: Slovak Republic

Date: Oct. 6

Size/Structure: €2 billion 4.35% notes due Oct. 14, 2025 priced at 99.751 to yield 4.373%, or mid-swaps plus 150 bps

Proceeds: To enhance the sovereign's liquidity and improve its debt maturity profile.

Lead Banks: HSBC, SG CIB, Tatra Banka, Unicredit

• Showed wide-ranging appetite for EM debt.

• Priced at a time when Slovak funding costs were lower than other euro zone members with higher credit ratings.

• Came to market as the sovereign was grappling with austerity measures.

VTB BANK

Issuer: VTB Bank

Date: Dec. 10

Size/Structure: RMB 1 billion notes due Dec. 23, 2013 priced at par to yield 2.95%.

Lead Banks: HSBC, VTB Capital

• Part of a wave of non-Asian issuers delving into offshore renminbi market.

• Illustrated that investors are interested in "dim-sum" bonds as a means to diversify away from dollar assets.

• Showed that the Chinese market, notoriously difficult to gain entry to, was opening up.

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