Jingrui Holdings prints bonds; Russia, Argentina dominate headlines; Lat-Am notes widen

By Christine Van Dusen

Atlanta, Aug. 1 – China’s Jingrui Holdings Ltd. printed notes on a Friday that saw poor liquidity and significant selling of Latin American bonds in the wake of Argentina’s default.

Investors also remained focused on Russia after the European Union imposed sanctions in an effort to get the sovereign to cut off support of rebels in Eastern Ukraine.

“Argentina and Russia remain idiosyncratic, volatile markets,” according to a report from Barclays.

Prices and spreads for bonds from such places as Brazil and Chile ran the gamut on Friday, a New York-based trader said.

Brazil’s Petroleo Brasileiro SA (Petrobras) continued to lead the way wider, moving out as much as 20 basis points on the long end, he said. Other Brazilian names followed suit.

Still, some names managed to trade in significant size, he said, with good flows for Corporacion Nacional del Cobre de Chile (Codelco).

Better sellers were reported for Mexico’s Cemex SAB de CV, he said. And Chile-based Masisa SA’s paper took a beating.

The session also saw Poland’s EM&F Financing AB set talk at 8½% to 8¾% for a €240 million issue of six-year notes, a market source said.

JPMorgan, Santander, Societe Generale, Unicredit and RBS are the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used to repay debt.

And Shanghai Electric Group Corp. made plans to set out on Monday for a roadshow to market a dollar-denominated issue of notes with Goldman Sachs, Deutsche Bank, JPMorgan, Barclays, BNP Paribas, Guotai Junan, Huatai Financial and ICBC International.

The Regulation S roadshow will be held in Hong Kong, Singapore and London.

Jingrui Holdings sells notes

In its new deal, Shanghai-based property developer Jingrui Holdings priced a $150 million issue of 13 5/8% notes due Aug. 8, 2019 at 98.683 to yield 14%, a market source said.

The pricing matched talk, which was set in the 14% area.

Haitong International Securities Co. Ltd., UBS AG, BOCI Asia Ltd., CLSA Ltd. and Guotai Junan Securities (Hong Kong) Ltd. were the joint bookrunners and joint lead managers for the Regulation S offering.

Proceeds from the notes will be used to refinance existing debt and to fund new and existing property projects.

As previously reported, the company had proposed the notes issuance in May. However, due to market conditions at that time, the company did not launch the international offering as planned.

Kexim picks banks

Korea Export-Import Bank has mandated ANZ, BofA Merrill Lynch, BNP Paribas, HSBC, Citigroup and Standard Chartered Bank as bookrunners for a dollar-denominated issue of notes, a market source said.

No other details were immediately available on Friday.

Hong Kong deal attracts orders

China-based Greenland Hong Kong Holdings Ltd.’s $500 million 4 3/8% notes due Aug. 7, 2017 drew an order book of $4.3 billion, a market source said.

The notes came to the market this week at 99.307 to yield 4.58% with Credit Suisse, HSBC, BOC International, JPMorgan and Morgan Stanley as the joint bookrunners.

The proceeds will be used for general corporate purposes, development of domestic projects and repayment of existing debt.

About 78% of the orders came from Asia and 22% from Europe, with 42% from fund managers, 34% from private banks, 16% from banks, 7% from corporates and 1% from insurers.

© 2015 Prospect News.
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