Damac new deal set for Tuesday; Red Star, Yida plan offerings; eyes on PDVSA; Latam prices

By Colin Hanner

Chicago, April 10 – With a shortened week in store for most of the working world, emerging markets were on the quieter side, a market source said, with Asian markets resonating that tone on Monday.

“We closed the day [inching] to a couple [basis points] wider as tone remains defensive in Asia,” a market source said of sovereign issues.

In Asian investment-grade issues, the market stayed “in a cautious range, although spreads finished mildly tighter in general,” the source said.

“All in all, the backdrop for [emerging market] credit therefore remains solid, but trading activity is likely to slow down ahead of the Easter weekend in many countries,” a market source said.

Yida, Red Star in lineup

Business park developer and operator Yida China Holdings Ltd. will offer dollar-denominated senior fixed-rate notes, the company said in a news release.

Proceeds from the proposed notes will be used to fund new property projects and for working capital.

Shanghai-based operator and manager of home furnishings shopping malls Red Star Macalline Group Corp. Ltd. is expected to sell dollar-denominated bonds on or around Tuesday following its roadshow, the company said in a news release.

Morgan Stanley, Citi, CICC HK Securities and China Merchants Securities (HK) are the joint global coordinators and bookrunners for the deal.

Guotai Junan International is also a joint bookrunner for the deal.

Proceeds from the proposed bonds will go toward investing in the development of Red Star’s portfolio of shopping malls; purchasing properties for operation use; investing in or acquiring home improvement, business furnishing or related business; replenishing working capital; and other general corporate purposes.

Latam prices notes

Chile’s Latam Airlines Group SA priced a $700 million offering of seven-year notes at par to yield 6 7/8% on Friday, a market source said.

Yield talk had been in the 7% area, a market source said.

BTG Pactual, BofA Merrill Lynch, BNP Paribas, Credit Suisse, Natixis and Banco Santander were bookrunners for the deal.

PDVSA bonds mostly unchanged

“Investors are still concerned on whether [Petroleos de Venezuela SA] will be able to repay [$2.1 billion] to investors” on Wednesday, a market source said.

On Monday, bonds were nearly unchanged from Friday’s levels.

Its 5¼% notes due 2017 were a ¼ point higher to a 98½ bid, 99½ offer.

The 9% notes due 2021 were unchanged with a 51¾ bid, 52¾ offer.

And the 6% notes due 2024 were similarly unchanged with a 38½ bid, 39½ offer.

As reported by Bloomberg, PDVSA said it will pay the principal and interest amounts on bonds due on Wednesday.

Damac to offer notes

In a slew of new deals expected to hit the market this coming week, Dubai’s Damac Real Estate Development Ltd. is planning to sell new dollar-denominated five-year notes on Tuesday, a market source said.

The notes will mature on April 20, 2022, and the offer price is yet to be confirmed, a market source said.

The over-the-counter issuance will have a 5% over-allotment option.

BofA Merrill Lynch, HSBC, Emirates NBD Capital and VTB Capital are stabilizing managers for the deal.

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