America Movil jumps into sturdy EM debt market; Islamic Development Bank, Melco to price

By Rebecca Melvin

New York, April 16 – America Movil SAB de CV jumped into a buoyant market for emerging markets debt issuance pricing its first international bonds in three years with a dual tranche offering of 2029 and 2049 bonds that reaped $2.25 billion in proceeds for the Mexico City-based telecommunications company.

The two bonds received ratings of A3/A-/A- from the ratings agencies and priced at 115 basis points over U.S. Treasuries for the 10-year notes and at Treasuries plus 145 bps for the 30-year notes. The paper priced slightly wide of comparable global market telecom paper, but right in line with its existing valuation.

Market players were not expecting much from the Latin America market this week given observance of Holy Week ahead of the Easter holiday, but recent new issuance success seems to be attracting more would-be issuers to join in. There are several deals expected to be announced or price next week, according to market players.

Elsewhere on Tuesday, First Abu Dhabi Bank PJSC priced $1.1 billion of five-year floating-rate notes due 2022 (Aa3/AA-/AA-) at par with an interest rate of Libor plus 95 bps. The United Arab Emirates lender also priced two smaller deals of floating-rate notes including $170 million of notes maturing in 2020 and $20 million of notes maturing in 2024.

Islamic Development Bank was talking a new deal of U.S. dollar-denominated five-year Islamic bonds. The Regulation S paper was being talked at a yield of mid-swaps plus high 40 bps. Final terms were not heard on Thursday.

In Asia, Melco Resorts & Entertainment Ltd. plans to price $500 million of senior fixed-rate notes (expected ratings Ba2/BB) on Wednesday, according to market sources.

Deutsche Bank and ANZ are the joint bookrunners for the Rule 144A and Regulation S offering.

The issuing entity will be Melco Resorts Finance Ltd., a wholly owned subsidiary of Melco Resorts & Entertainment.

The Macau-based owner and operator of gaming and resort properties plans to use the proceeds to pay down its revolving credit facility under the Melco Resorts (Macau) Ltd. amended and restated credit agreement.

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