Controladora Mabe, Lumena set talk; EMBI-Plus flat to easier; Russian corporates tighten

By Christine Van Dusen and Paul A. Harris

Atlanta, Oct. 20 - The primary was "generally quiet" Tuesday, in a departure from the red-hot pace of deals in mid-October, according to an emerging markets bond fund manager.

The EMBI-Plus headed out of the session at a slightly wider level of 305 bps bid, versus the Monday close of 302 bps bid, the buy-sider said.

"It's very minimal," the investor remarked of the easing in the index.

"We're seeing some of the investment-grade companies a tad wider, but nothing major."

Meanwhile, although there were no pricings, details emerged on several deals in the works, and in the secondary Russian corporate paper tightened and some traders turned a concerned eye toward Brazil, where a new law could affect inward investment in bonds.

Controladora Mabe sets talk

Controladora Mabe, SA de CV talked its planned $300 million sale of 10-year notes (/BBB-/BBB-) at the 7.875% area and is expected to price the deal on Wednesday, according to a market source.

Bank of America Merrill Lynch and HSBC are lead managers for the Rule 144A and Regulation S offering of non-callable notes.

Proceeds will be used to repay outstanding debt.

Controladora Mabe is a manufacturer and distributor of white line products, based in Col. de Valle, Mexico.

Lumena fixes guidance

Price talk also went on China's Lumena Resources Corp., which set guidance for its $250 million offering of five-year global notes at the 12¼ % area, according to a market source.

Pricing is expected Wednesday for the deal from the Chengdu-based miner, processor and manufacturer of thenardite products.

The notes are non-callable for three years, the source said.

Noble for Thursday

Also from China, Noble Group is expected to price its dollar-denominated bonds due 2020 (//BBB-) on Thursday, the buy-side source said.

The offering - led by Goldman Sachs International, Hongkong and Shanghai Banking Corp. Ltd., J.P. Morgan Securities Ltd. and Royal Bank of Scotland - will fund a tender for up to $340 million of the Hong Kong commodities company's 6 5/8% notes due 2014, and go to general corporate purposes.

Russian corporates tighten

Russian sovereign and corporate debt continues to see good demand, according to a London-based trader who focuses on that sector of emerging markest.

The country's debt is in a "tightening mode," the trader said.

OAO Gazprom five-year credit default swaps were at 225 bps bid, 230 bps offered, and Gazprom's 8 1/8% notes due 2014 were at 107½ bid, at 107 7/8 offered.

"There are no new issues so far in corporates, but I'm sure there will be," the trader said, noting that Russia is planning to bring $17.8 billion of global bonds next year.

The roadshow will begin in November, the trader said.

New Brazil law could hit investment

Just after paper and pulp company Fibria Overseas Finance Ltd. set its roadshow for a dollar-denominated offering of notes (expected ratings Ba1/BB), its home country of Brazil passed a law that will tax inward investment into Brazilian stocks and bonds.

The new tax, which would place a 2% levy on foreign investment in the stock market and fixed-income securities, is designed to slow the appreciation of Brazil's currency.

A portfolio manager based on the U.S. West Coast said that the law is causing a little concern about the local markets, but "history has shown that these types of taxes don't work, and don't keep money from flowing in when fundamentals are positive."

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