Votorantim, Tan Chong, PTTEP scheduled roadshows for week ahead; spreads mostly tighter

By Aleesia Forni

Virginia Beach, June 6 – New deal announcements from Votorantim Industrial SA, Petrol dd Ljubljana, Tan Chong International Ltd. and PTT Exploration and Production PCL closed out a fairly active week for emerging markets bonds.

“All told, a solid week,” a trader said.

All four potential issuers announced marketing trips for the new deals, with each expected to kick off at the beginning of the week ahead.

In the secondary market, spreads were mostly tighter overall to wrap the first full week of June, sources said.

Bonds from Dar al-Arkan and National Bank of Abu Dhabi were also active this week, with a trader noting the latter’s performance as “impressive.”

National Bank of Abu Dhabi’s bonds due 2020 were around 3 basis points tighter on Friday.

He also noted that bonds from Investment Corporation of Dubai “have been heavy lately.”

However, he saw the company’s bonds due 2020 and 2024 “back to closing strongly bid at par bid post the payrolls” on Friday.

In other secondary action, the Republic of Korea’s new dollar notes were trading around 10 bps better compared to Wednesday’s pricing.

Votorantim plans dollar sale

Votorantim Industrial has tapped BB Securities, Bradesco BBI, Citigroup Global Markets Inc., Mitsubishi UFJ Securities, Morgan Stanley & Co. LLC and Banco Votorantim to arrange a roadshow ahead of a possible bond offering, according to a market source.

The roadshow will being on Monday, and a dollar-denominated, Rule 144A and Regulation S deal may follow.

The notes will be issued through the company’s subsidiary, Companhia Brasileira de Aluminio.

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.

Petrol dd Ljubljana roadshow

Petrol dd Ljubljana plans to begin a roadshow in Europe on Monday ahead of a possible Regulation S-only euro-denominated notes offering, market sources said.

J.P. Morgan Securities LLC is arranging the meetings.

The oil and energy company is based in Ljubljana, Slovenia.

Tan Chong taps leads

Also kicking off next week, Hong Kong’s Tan Chong International has mandated DBS Bank Ltd and HL Bank to arrange a roadshow ahead of a possible bond offering, according to market sources.

The series of investor meetings will begin on Monday.

The Wanchai, Hong Kong-based investment holding company conducts business in four business segments: motor vehicle distribution, heavy commercial vehicle and industrial equipment distribution, property rentals and development and other operations.

PTTEP eyes perpetuals

PTT Exploration and Production is planning to bring to market a dollar-denominated offering of perpetual bonds, market sources said.

The company has mandated banks to arrange a roadshow ahead of the proposed Rule 144A and Regulation S offering.

BofA Merrill Lynch, Credit Suisse Securities, HSBC and J.P. Morgan Securities LLC are arranging the investor meetings, which will kick off on June 9.

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

SMRT oversubscribed

The book for the recent S$100 million offering from SMRT Corp. Ltd. reached around S$175 million from over 30 accounts, according to a market source.

Asset managers picked up 53%, banks 25%, private banks 17% and insurers 4%.

Singapore investors grabbed 99%, while 1% of orders came from Hong Kong.

Australia and New Zealand Banking Group Ltd., Hongkong and Shanghai Banking Corp. Ltd. and Oversea-Chinese Banking Corp. Ltd. ere the joint lead managers and joint bookrunners.

Proceeds will be used to finance general corporate funding requirements.

SMRT is a Singapore-based transport operator.

Shui On distribution

In another recently priced deal, around 93% of investors for the recent $550 million sale from Shui On Land Ltd. came from Asia.

The remaining 7% of investors were from Europe.

Private banks picked up 58%, fund managers 32% and banks 10%.

The company’s subsidiary, Shui On Development, priced the 9 5/8% senior notes due 2019 in a Regulation S sale at par on Tuesday.

BNP Paribas, Hong Kong Branch, Deutsche Bank AG, Singapore Branch, J.P. Morgan Securities plc, Standard Chartered Bank and UBS AG, Hong Kong Branch are the bookrunners, according to a filing by the company.

Proceeds will be used to repay debt with near-term maturities and to fund capital expenditures.

Shui on Land is a Shanghai-based real estate development company.

Christine Van Dusen contributed to this review.

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