Primary sees PTTEP, Caltex, Votorantim price; Kookmin, eSun, Korea Gas announce roadshows

By Aleesia Forni

Virginia Beach, June 11 – Another busy primary session for emerging markets, which saw new deals price from China’s Hainan Airlines Co. Ltd., Banco do Brasil SA and PTT Exploration and Production PCL.

Other dollar-denominated issues were priced by South Korea’s GS Caltex Corp. and Votorantim Industrial SA during Wednesday’s session.

Both Caltex’s and Votorantim’s deals sold around 25 basis points tighter compared to original guidance, sources noted.

Looking to the forward calendar, South Korea’s KB Kookmin Bank, Korea National Oil Corp., Korea Gas Corp., the Commercial Bank of Qatar and eSun Holdings Ltd. each announced plans to kick off roadshows ahead of possible bond offering.

In the Latin American space, Brazil’s RioPrevidencia set price talk for its planned $1 billion issue of 10-year senior notes.

Banco do Brasil sells notes

The primary market saw Banco do Brasil sell $2.5 billion of 9% perpetual tier 1 notes (expected ratings: Ba3/B+/) at par to yield 9% on Wednesday, according to market sources.

The notes sold in line with talk, which was tightened from earlier guidance of 9% to 9¼%.

The bookrunners for the Rule 144A and Regulation S deal were BB Securities, BNP Paribas, Citigroup, HSBC, JPMorgan and Standard Chartered Bank.

Proceeds will be used for general corporate purposes.

Banco do Brasil is a lender based in Brasilia, Brazil.

Votorantim prices tight

Votorantim Industrial priced $400 million of 4¾% 10-year senior notes at the tight end of talk with a spread of Treasuries plus 225 bps, or 98.903 to yield 4.89%, according to a market source.

The joint bookrunners for the Rule 144A and Regulation S deal were BB Securities, Bradesco BBI, Citigroup Global Markets Inc., Mitsubishi UFJ Securities, Morgan Stanley & Co. LLC and Banco Votorantim.

Proceeds will be used to fund a tender offer and for general corporate purposes.

Votorantim Industrial is a subsidiary of Sao Paulo-based mining, metals and paper group, Votorantim Participacoes.

Caltex sells five-years

Also on Wednesday, South Korea’s GS Caltex sold $400 million of 3% five-year bonds at Treasuries plus 135 bps, according to a market source.

The notes (Baa3/BBB-/) sold at the tight end of talk.

Pricing was at 99.82 to yield 3.039%.

BofA Merrill Lynch, Citigroup, Morgan Stanley and BNP Paribas were the bookrunners.

Caltex is an oil refiner based in Seoul, South Korea.

PTT perpetuals

PTT Exploration and Production (Baa3/BBB-/) also sold its new deal at the tight end of talk.

The company priced its $1 billion of perpetual subordinated bonds (Baa3/BBB-/) at par to yield 4 7/8%, according to a market source.

Price talk was set in the 5% area.

BofA Merrill Lynch, Credit Suisse Securities, HSBC and J.P. Morgan Securities LLC were the bookrunners.

The bonds were sold via Rule 144A and Regulation S.

PTTEP is a Bangkok-based energy and exploration company that is 65% owned by the government of Thailand.

Hainan taps renminbi bonds

China’s Hainan Airlines priced a RMB 1.3 billion tap of its existing 6¼% notes due 2017 at par on Wednesday, according to a market source.

JPMorgan, UBS, CLSA, DBS Bank, Deutsche Bank and ICBC were the bookrunners for the Regulation S deal.

The proceeds will be used for refinancing, capital expenditures, working capital and general corporate purposes.

The total issue size now sits a RMB 3 billion.

Hainan Airlines is based in Haikou, China.

Kookmin roadshow

In forward calendar news, South Korea’s KB Kookmin Bank will embark on a roadshow starting Monday ahead of a possible dollar bond issue, a market source said.

Barclays, BNP Paribas Securities Corp., BofA Merrill Lynch, Citigroup and Standard Chartered Bank are arranging the marketing trip.

Kookmin Bank is a lender based in Seoul.

Korea National eyes euros

Korea National Oil plans to price a euro-denominated offering of notes following a series of investor meetings, according to market sources.

Barclays, BNP Paribas, Citigroup, Deutsche Bank and Societe Generale are arranging the roadshow, which will begin on June 16.

Korea National Oil is an oil and gas production and exploration company based in Anyang, South Korea.

Korea Gas investor meetings

In other news from that region, Korea Gas is scheduled to hold a roadshow during the June 16 week for a proposed offering of dollar-denominated bonds, a market source said.

BNP Paribas Securities Corp, Citigroup Global Markets Inc., HSBC Securities, JPMorgan and UBS are the bookrunners for the Rule 144A and Regulation S deal.

Korea Gas is a natural gas company based in Seongnam, South Korea.

eSun taps leads

eSun Holdings is planning to begin a roadshow on June 12 ahead of a possible offering of renminbi-denominated notes, according to a market source.

ANZ, DBS, HSBC and UBS are the bookrunners for the planned Regulation S-only deal.

eSun is a Hong Kong-based investment holding company for subsidiaries engaged primarily in the media and entertainment industries.

Roadshow for Qatar bank

The Commercial Bank of Qatar also mandated bookrunners for a roadshow, tapping BofA Merrill Lynch, HSBC and Morgan Stanley to arrange a series of fixed income investor meetings ahead of a possible benchmark Regulation S dollar-denominated offering, according to company release.

The roadshow will begin on Thursday.

The bank provides retail and wholesale banking services and is based in Doha, Qatar.

RioPrevidencia sets talk

Moving to Latin American news, Brazil’s RioPrevidencia set price talk for a planned $1 billion issue of notes due July 6, 2024 (expected ratings: /BBB-/BBB) in the mid-6% area, a market source said.

The notes will be issued by Rio Oil Finance Trust.

BB Securities and BNP Paribas were the bookrunners for the Rule 144A and Regulation S deal.

RioPrevidencia is the public pension fund for Rio de Janeiro.

Vakifbank oversubscribed

The final book for the recent deal from Turkiye Vakiflar Bankasi TAO (Vakifbank) reached more than €5 billion from more than 410 investors.

Asset managers picked up 68%, banks and private banks 20% and hedge funds 9%.

Singapore investors grabbed 45%, 18% of orders came from Germany and Austria, and 8% came from Switzerland.

About 6% of orders came from France, 5% from Benelux, 5% from southern Europe and 13% from elsewhere.

Vakifbank priced the €500 million of 3½% five-year bonds (Baa3//BBB-) at 99.326 to yield 3.65%, or mid-swaps plus 292 bps, on Tuesday.

The joint bookrunners were Barclays, BNP Paribas, Commerzbank, Erste Group, Natixis and UniCredit.

Vakifbank is a lender based in Istanbul.

Christine Van Dusen contributed to this review.

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