Agile Property, Kaisa Group, Votorantim price new notes; Dominican Republic sets roadshow

By Christine Van Dusen

Atlanta, April 21 - Emerging markets kept their slow but steady pace on Wednesday as some new issues came to market and investors continued to digest this month's uptick in supply.

But even as prospective new deals advanced, market participants also kept an eye on the repercussions of Goldman Sachs' legal troubles and Greece's debt difficulties, market sources said.

"It's been a very quiet day," a New York-based trader said.

This was due in part to Goldman Sachs, which remained on investors' minds, this time for news that the investment bank is facing German allegations of fraud similar to those outlined in a lawsuit by the Securities and Exchange Commission and lodged by British officials. The German state bank Landesbank Bayern has split from Goldman Sachs, market sources said.

And Greece remained of concern as the sovereign on Wednesday entered into long-awaited talks with officials from Europe and the International Monetary Fund and Germany's opposition party said it would not back quick approval of a bailout plan. That could slow the process of getting aid to debt-saddled Greece, sources said. The IMF and European talks are expected to last for about two weeks.

As a result, in the secondary market "there are some CDS trading," the trader said. "But that's pretty much it."

Primary picks up

In the primary, the deal the trader was most interested in on Wednesday was Hong Kong-based Agile Property Holdings Ltd.'s pricing of an upsized $650 million issue of 8 7/8% notes due 2017 at par to yield Treasuries plus 571 basis points.

"It traded all the way to 100.45 and then down to 100.125 just now," he said at mid-afternoon. "I think it's a bit tight. The market was looking for paper, so it traded up. But now the tone is slightly weaker, so it's trading down."

In another deal from Asia, China's Kaisa Group Holdings Ltd. on Wednesday priced $350 million 13½% notes due 2015 at par, according to a market source.

Also pricing on Wednesday was Brazil's Votorantim Participacoes SA, which sold €750 million 5¼% notes due 2017 at 99.605 to yield mid-swaps plus 250 bps, according to a market source.

And investors remained eager to see the Russian Federation's planned two-tranche issue of dollar-denominated eurobonds, with five-year notes talked at Treasuries plus 125 bps and 10-year notes talked at Treasuries plus 137.5 bps. Pricing information is likely to be released Friday, a market source said.

Also on Wednesday, the planned benchmark-sized dollar-denominated deal from the Dominican Republic - which was first announced in 2009 - popped back into view with plans for a roadshow starting Friday via bookrunners Barclays Capital and Citigroup.

Agile sells upsized notes

Hong Kong's Agile Property Holdings priced an upsized $650 million 8 7/8% issue of senior notes due April 28, 2017 (Ba3/BB/) at par to yield Treasuries plus 571 bps, a market source said.

The deal was upsized from $500 million.

Bank of America Merrill Lynch and Morgan Stanley were the bookrunners for the Rule 144A and Regulation S offering, which is non-callable for four years.

Proceeds will be used to exercise a make-whole call for outstanding 9% notes due 2013 and for general corporate purposes.

Agile Property is a Hong Kong-based land development company.

Votorantim prices issue

Brazil's Votorantim Participacoes priced €750 million 5¼% notes due April 28, 2017 (Baa3/BBB/BBB-) at 99.605 to yield mid-swaps plus 250 bps, according to a market source.

Deutsche Bank, HSBC and SG Corporate and Investment Banking were the bookrunners for the Rule 144A and Regulation S issue, which includes a change-of-control put at 101% with a ratings downgrade.

Proceeds will be used for general corporate purposes.

Votorantim is a Sao Paulo-based conglomerate.

Kaisa Group prices notes

China's Kaisa Group Holdings priced $350 million 13½% notes due April 28, 2015 (B2/B+/) at par, a market source said.

Citigroup, Credit Suisse and UBS Investment Bank were the bookrunners for the Rule 144A and Regulation S deal, which is non-callable for three years.

This followed a roadshow from April 12 to April 21.

Proceeds will be used for general corporate purposes and to refinance debt, to fund land acquisitions and to fund property development.

Kaisa Group is a Shenzhen, China-based property development company.

Dominican Republic sets roadshow

The Dominican Republic will begin a roadshow for a planned benchmark-sized issue of dollar-denominated sovereign global bonds on Friday, according to a market source.

Barclays Capital and Citigroup are the bookrunners for the planned offering, which was first announced in 2009.

Paul A. Harris contributed to this report

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