Movil, PGE, KrisEnergy sell notes; Brazil lags, Mexico shines; Alfa Bank, RioPrevidencia ahead

By Christine Van Dusen

Atlanta, June 2 - Mexico's America Movil SAB de CV, Poland's Polska Grupa Energetyczna SA (PGE) and Indonesia's KrisEnergy priced new notes on Monday as investors gobbled up paper from Saudi Electricity Co. and bonds from Venezuela climbed in trading.

"The SECO 2044s are trading at 105 bid, 104 7/8 offered today," a London-based trader said. "That's unchanged, price-wise, so a cool 10 basis points tighter on the week."

Bahrain's bonds continued to perform well and investors bought up the 2018s and 2019s from Saudi Arabia's Dar Al-Arkan Real Estate Development Co.

"Overall, a busy start to the week and month," he said. "Definitely better buying this morning and balanced flow in the afternoon."

Looking to Latin America, low-beta names moved lower along with U.S. Treasuries and widened as much as 3 bps, a New York-based trader said.

Brazil was an underperformer, while Mexico was an outperformer, he said.

Also on Monday, market-watchers were keeping an eye out for the upcoming notes from Abu Dhabi-based Etisalat, which set out on Sunday to market an issue of notes.

"Overall, the group has strong positioning on the telecom market," a trader said. "The target size of the bond will be circa €2.1 billion."

The deal is likely to do well because it is "a solid AA- credit with a strong balance sheet and cash flow generation," she said.

In other news, Russia's OJSC Alfa Bank mandated leads for an upcoming deal while China Merchants Bank Co. Ltd. and Brazil's RioPrevidencia set roadshows.

Movil prices bonds

In its new deal, Mexico-based telecommunications company America Movil priced a two-tranche issue of Ps. 17.5 billion denominated notes due June 9, 2019 and Dec. 9, 2024, a syndicate source said.

The deal included Ps. 10 billion 6% notes due 2019 that priced at 99.822 to yield 6.04%, or Bonos plus 125 bps.

The Ps. 7.5 billion 7 1/8% notes due 2024 priced at 99.728 to yield 7.16%, or Bonos plus 125 bps.

Talk was set in the 125 bps area for both tranches.

Deutsche Bank, HSBC and Morgan Stanley were the active bookrunners for the Securities and Exchange Commission-registered deal. BBVA, Citigroup and Credit Suisse were passive bookrunners.

Proceeds from the sale of the notes will be used for general corporate purposes, which may include the refinancing of outstanding indebtedness, according to a company filing.

New deal from PGE

Poland-based power company PGE priced a €500 million issue of 1 5/8% notes due June 9, 2019 at 99.454 to yield 1.74%, or mid-swaps plus 98 bps, a market source said.

BNP Paribas, Citigroup, ING and Societe Generale CIB were the bookrunners for the Regulation S deal.

KrisEnergy sells notes

Indonesia-based oil and gas company KrisEnergy priced S$130 million 6¼% notes due June 9, 2017 at par to yield 6¼%, a market source said.

Standard Chartered Bank was the active bookrunner for the Regulation S deal. HSBC was the passive bookrunner.

China Merchants roadshow ahead

China Merchants Bank will set out on Tuesday for a roadshow to market a dollar-denominated issue of notes, a market source said.

The notes are part of the company's recently announced $5 billion medium-term note program.

BofA Merrill Lynch, HSBC and Standard Chartered Bank (Hong Kong) are the joint global coordinators for the Regulation S deal.

BNP Paribas, Citigroup, JPMorgan and Wing Lung Bank are joint bookrunners and joint lead managers.

RioPrevidencia plans roadshow

Brazil-based pension fund RioPrevidencia will set out on Wednesday for a roadshow to market a dollar-denominated issue of notes due April 6, 2024, a market source said.

BB Securities and BNP Paribas are the bookrunners for the Rule 144A and Regulation S deal.

The roadshow will start in Santiago and travel to London before concluding with conference calls in Boston on June 10.

Alfa Bank picks leads

Russia's Alfa Bank has mandated Alfa Bank, Commerzbank and UBS as bookrunners for a euro-denominated issue of notes, a market source said.

The Regulation S offering is expected to price in the near future.

Alfa Bank is a commercial lender based in Moscow.

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