Banco Votorantim sells bonds as Greece downgrade dings sentiment; Finansbank trades wider

By Christine Van Dusen

Atlanta, May 9 - Greece once again reared its debt-heavy head on Monday with news of a ratings downgrade from Standard & Poor's, which renewed worries about the global economic recovery and kept investors cautious.

"The Greece situation keeps bubbling away in the background," a London-based market source said.

But that didn't stop Brazil's Banco Votorantim SA from selling notes while several other issuers made moves toward the market.

On that list is Brazil's Banco Bradesco SA, Prague-based Czech Railways, Ukraine-based Agroton plc, Lebanon-based Byblos Bank, Hungary's Nitrogenmuvek ZRT and Hungarian Development Bank plc, Indonesia's PT Pertamina Persero, Brazil's Banco Safra SA and Hong Kong's China Shanshui Cement Group Ltd.

In trading, the new issue for Turkey's Finansbank AS was wider while Middle Eastern names saw some solid demand.

"We didn't really see a tremendous amount of selling pressure from accounts," a London-based trader said. "Some valuations look stretched to me, post-rally, but still respectful of supply and demand dynamics."

Votorantim prints notes

Brazil-based lender Banco Votorantim priced R$1 billion notes due May 16, 2016 at par to yield 6¼%, a market source said.

Deutsche Bank, Itau BBA, BB Securities and Banco Votorantim were the bookrunners for the Rule 144A and Regulation S deal.

Also on Monday from Brazil, lender Banco Bradesco announced plans for a five-year issue of dollar-denominated benchmark-sized senior notes.

Bradesco BBI, Citigroup and Goldman Sachs are the bookrunners for the Rule 144A and Regulation S deal.

Proceeds will be used for general corporate purposes.

And Brazil-based bank Banco Safra mandated Barclays Capital, Banco Safra and UBS for a dollar-denominated issue of three-year notes that is expected to price this week.

Fibra, Tupi do deals

This news followed the late-Friday pricing of notes from another Brazilian bank. Banco Fibra SA sold $175 million senior notes due May 12, 2014 at par to yield 5 7/8%.

The notes priced in line with talk, which was set at 5 7/8%, via Banco Safra SA (Cayman Islands branch) in a Regulation S transaction.

And Brazil-based cement and concrete company Cimento Tupi SA sold $100 million 9¾% senior notes due May 11, 2018 at 98.763 to yield 10%, matching price talk, a market source said.

Bank of America Merrill Lynch was the bookrunner for the Rule 144A and Regulation S notes, which are non-callable for four years and include a change-of-control put at 101%.

Bos Finance sells bonds

Also on Friday, Poland-based BOS Finance AB - part of Bank Ochrony Srodowiska SA (Bos Bank - priced €250 million notes due May 11, 2016 at par to yield 6%, or mid-swaps plus 303.20 basis points, a market source said.

Barclays Capital, ING Bank and Raiffeisen Bank International were the bookrunners for the Regulation S notes, which include a change-of-control put at par if state ownership falls below 51%.

Proceeds will be used for general corporate purposes.

And China-based real estate company Sino-Ocean Land (Perpetual Finance) Ltd. priced $400 million perpetual notes at par to yield 10¼%, or Treasuries plus 831 bps, a market source said.

Goldman Sachs, BOC International and HSBC were the bookrunners for the Rule 144A and Regulation S notes.

Proceeds will be used to finance new and existing projects and for general corporate purposes.

Czech Railways offering eyed

In other news, Prague-based Czech Railways mandated Barclays Capital, Erste and Societe Generale for a €300 million issue of notes, a market source said.

No other details were immediately available on Monday.

And Ukraine-based agriculture producer Agroton selected VTB Capital and Dragon Capital as bookrunners for a dollar-denominated issue of notes, a market source said.

The Regulation S transaction is expected to launch following a roadshow that starts Tuesday.

Byblos Bank plans deal

Also on Monday, Lebanon-based lender Byblos Bank was planning a $300 million issue of 10-year notes, a market source said.

The notes, via bookrunner Byblos Bank, are expected to yield 7%.

Proceeds will be used for general corporate purposes.

And Indonesia-based oil and gas company Pertamina Persero mandated Citigroup, Credit Suisse and HSBC for a benchmark-sized issue of dollar-denominated notes, a market source said.

A roadshow for the Rule 144A and Regulation offering will begin Wednesday.

Hungarian firms set leads

From Hungary, fertilizer producer Nitrogenmuvek mandated BNP Paribas for a roadshow from Wednesday to Friday, a market source said.

The marketing trip will travel from Frankfurt to Vienna and London before wrapping up in Zurich and Geneva.

Also from Hungary, Hungarian Development Bank mandated BNP Paribas, ING and Societe Generale for a roadshow from May 16 to May 19, a market source said.

The marketing trip will take place in Vienna, London, the Hague, Geneva and Zurich.

China Shanshui plans roadshow

Monday also saw Hong Kong-based cement producer China Shanshui Cement Group tap Barclays Capital, Credit Suisse, Deutsche Bank and Standard Chartered Bank for a dollar-denominated issue of five-year notes, a market source said.

A roadshow for the Rule 144A and Regulation S offering will take place this week in Asia, Europe and the United States.

Proceeds will be used for refinancing debt, expanding production capacity, acquisitions and general corporate purposes, according to a company filing.

Finansbank in focus

Traders were keeping a close eye on the recent $500 million 5½% notes due 2016 that Turkey-based lender Finansbank AS priced May 5 at 99.384 to yield mid-swaps plus 373.50 bps.

The final book for Finansbank's deal was $800 million from more than 100 investors. About 25% of the orders came from Switzerland, 19% from Asia, 17% from the United Kingdom, 15% from the Netherlands, 12% from the Americas, 8% from Europe and 4% from the Middle East and North Africa.

Private banks accounted for 33%, fund managers 31%, banks 28%, central banks 5% and insurance 3%.

The notes were seen at 97.70 bid, 98 offered early in the session on Monday.

"Finansbank still doesn't seem to have found a floor, and trading on it is purely on technicals. It's now 50 bps wider from its reoffer level," a trader said later in the day. "However, this doesn't seem to have spill-over effects on the rest of the sector."

Middle East sees some demand

In other trading on Monday, Bahrain continued to see solid demand while Dubai was on pause during the morning.

"The past two sessions have seen a little softness in Dubai and Dubai Water and Electricity Authority paper as some look to fade the move we've had," the trader said. "DEWA remains 5 to 10 bps tighter over the week."

He also saw buyers for Kuwait-based Kipco's 2016s and for Sabic Capital.

"Saudi Arabia names have received some good interest," he said.

South Africa, Senegal gain

Looking to Africa, South Africa continued to trade very well, the trader said. And the new 8¾% notes due 2021 from Senegal - which priced Friday at 97.574 - were trading at 102.50 bid, 102.75 offered.

The notes, via Standard Bank and Standard Chartered Bank, yielded 9 1/8%, in line with talk.

"The new Senegal is settling in 100 [bps] wide of Dubai," the trader said. "Some Street selling pressure came in this afternoon."

Another new issue wasn't faring quite as well on Monday. The $300 million 8½% notes due 2018 from Kazakhstan's JSC Kazkommertsbank (KKB) that priced at 99.353 to yield 8 5/8% on May 5 were trading at 97.75 bid, 98.50 offered on Monday.

"The new KKB is under pressure still, but otherwise the sector is quiet," the trader said.

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