Russia could price Thursday; Asian corporates expect to head to market with note offerings

By Aleesia Forni

Columbus, Ohio, March 14 - Emerging market investors continued to add risk on Wednesday, according to a market source.

The Itraxx CEEMEA SOVX index of credit default swaps from Central and Eastern Europe, the Middle East and Africa, moved sideways, and was seen at 260 basis points bid.

In the primary market, Russia's proposed bond issuance could come as early as tomorrow, while several Asian sovereigns announced proposed note offerings.

Russia offering expected

With the roadshow schedule set for Russia's (Baa1/BBB/BBB) proposed bonds, the deal could come as early as Thursday, according to a syndicate source.

Russia is planning to meet investors in London, the U.S. West Coast, Boston and New York via BNP Paribas, Citigroup, Deutsche Bank, Sberbank and VTB Capital, according to a sellside source.

After having only 10% of the play in Asia when the country completed its last $5.5 billion dollar-denominated deal in April 2012, Russia will not be holding investor meetings in Asia.

Russia has a current issuing capacity of $7 billion.

Asian corporates eye deals

Also in the primary market, Chaowei Power Holdings Ltd. expects to offer renminbi-denominated bonds subject to market conditions and investor interest, according to a press release.

The Cayman Islands-incorporated company intends to use the proceeds of the offering to fund future expansions of its production capabilities, including the construction and installation of additional production facilities in Zhejiang, Jiangxi and Henan provinces.

Nomura International plc is the lead manager.

Based in Changxing County, Zhejiang Province, China, Chaowei is a motive battery manufacturer operating in the electric bike market in China.

KWG Property Holding Ltd. plans to conduct an international offering of dollar-denominated senior fixed-rate notes, according to a company news release.

Barclays Bank plc, the Hongkong and Shanghai Banking Corp. Ltd. and Standard Chartered Bank are managing the proposed deal.

Proceeds will be used to finance the Guangzhou, China-based property company's projects and for general corporate purposes.

Mongolian Mining Corp. plans to issue dollar-denominated senior notes due 2017, according to a company release.

ING Bank NV, Singapore Branch, J.P. Morgan Securities Ltd. and Bank of America Merrill Lynch will act as joint bookrunners, and Standard Bank plc and Standard Chartered Bank will be joint lead managers.

The Ulaanbaatar, Mongolia-based coking coal producer and exporter plans to use the proceeds from the proposed issue for financing transportation infrastructure improvement and development projects, as well as for working capital and other general corporate purposes, including exploration and debt refinancing.

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