Emerging Markets: Shanghai port operator prices two bonds; Bright Foods prices euro deal

By Rebecca Melvin

New York, July 17 – Asia continued to dominate the emerging markets new issuance tallies this past week as other regions turned notably quieter with the lull from summer vacation schedules yet to peak.

Shanghai International Port (Group) Co., Ltd. issued $1 billion of guaranteed bonds (A1/A+) in two tranches via subsidiary Shanghai Port Group (BVI) Development 2 Co., Ltd.

The port operator issued $300 million of 1½% bonds due 2025 and $700 million of 2 3/8% bonds due 2030. Proceeds of the issue, which was expected to be issued on Tuesday, will be used to refinance debt and for general corporate purposes.

BOSC International, Bank of China, UBS, J.P. Morgan and BofA Securities are joint global coordinators, as well as joint bookrunners and joint lead managers alongside ICBC International, China Construction Bank, DBS Bank Ltd., Industrial Bank Co., Ltd. Hong Kong Branch and Bank of Communications.

Bright Food (Group) Co. Ltd., also based in Shanghai, is guarantor of Bright Food Singapore Holdings Pte. Ltd.’s €800 million 1.75% five-year senior notes (Baa3/BBB-/BBB+), which priced on Wednesday at 99.73 to yield 1.807%, or mid-swaps plus 215 basis points, according to a syndicate source.

The notes are guaranteed by Bright Food International Ltd. and Bright Food Group.

Pricing of the Regulation S deal was tightened from initial talk for a spread in the mid-swaps plus 250 bps area.

Bank of China, BNP Paribas (billing and delivery), China Construction Bank (Asia), DBS Bank Ltd., ICBC, Shanghai Pudong Development Bank Hong Kong Branch, Standard Chartered Bank, ABC International and J.P. Morgan are joint lead managers and joint bookrunners for the deal, which was listed on the Global Exchange Market of Irish Stock Exchange, or Euronext Dublin.

The order book for the food and beverage maker’s deal stood in excess of €3.25 billion at the time when final price guidance was released.

The proceeds of the notes will be used to repay the group’s existing offshore debt.

Yankuang Group (Cayman) Ltd. sold $400 million of 4% three-year bonds guaranteed by Yankuang Group Co. Ltd. at 99.442, according to a listing notice with the Stock Exchange of Hong Kong Ltd.

China Securities International, Guotai Junan International, China International Capital Corp., CCB International and Goldman Sachs (Asia) LLC were the global coordinators and were joined as bookrunners and lead managers by Cinda International, GF Securities, Huatai International, China Minsheng Banking Corp., Ltd., Hong Kong Branch, CLSA Industrial Bank Co., Ltd. Hong Kong Branch and Shanghai Pudong Development Bank Hong Kong Branch.

The coal mining companies are based in Shandong, China.

Moving further south, PTT Treasury Center Co. Ltd. issued $700 million of 3.7% senior notes due 2070 (Baa1/BBB+) guaranteed by the Bangkok-based oil and gas company PTT PCL on Thursday, according to a notice.

BNP Paribas, Citigroup Global Markets Inc., Hongkong and Shanghai Banking Corp. Ltd., Singapore Branch and Standard Chartered Bank (Singapore) Ltd. are bookrunners for the Regulation S and Rule 144A offering.

The notes were issued under the company’s $2 billion medium-term note program.

Macau-based Melco Resorts Finance Ltd. priced a $500 million issue of eight-year senior notes (Ba2/BB) at par to yield 5¾% on Tuesday, according to a syndicate source.

The yield printed at the tight end of yield talk in the 5 7/8% area.

The gaming and resort company plans to use the proceeds to repay the principal amount outstanding under its revolving credit facility, with the remainder to be used for general corporate purposes.

For the Philippines, Globe Telecom, Inc. priced a $600 million dual-tranche offering of dollar-denominated senior notes.

Globe Telecom priced $300 million of 10-year notes with a coupon of 2½% and $300 million of 15-year notes with a coupon of 3%, according to a 17-C filing with the Philippine Securities and Exchange Commission.

Hongkong and Shanghai Banking Corp. Ltd., J.P. Morgan Securities plc and BPI Capital Corp. are the joint lead managers and joint bookrunners for the Regulation S deal.

The final order book was 6.5 times oversubscribed, allowing the company to tighten pricing from initial guidance by 40 bps for the 10-year tranche and 35 bps for the 15-year tranche, according to a press release.

Proceeds from the unrated notes will be used to finance the company’s capital expenditures and its maturing or existing obligations and for general corporate purposes.

“The issuance is a testament of the investor community’s unwavering trust in the company’s strong business fundamentals. The success of the offering, after having last tapped the international capital markets in 2004 and achieving a record-low coupon for the 10-year tranche and the record-long tenor for unrated bonds for the 15-year tranche, enables us to maintain our momentum, enhance our network and deliver on our commitment of providing first-world internet connectivity to the Philippines,” president and chief executive officer Ernest L. Cu commented in the release.

The telecommunications company is based in Taguig, Philippines.

In local currency, Philippines’ Robinsons Land Corp. priced PHP 13,190,280,000 of fixed-rate bonds in two tranches, according to a press release.

The company issued PHP 12,763,070,000 of three-year series C bonds with a coupon of 3.683% and PHP 427.21 million of five-year series D bonds with a coupon of 3.8%.

The total issue size was increased from an originally planned PHP 10 billion.

BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., First Metro Investment Corp. and Standard Chartered Bank acted as joint lead underwriters and bookrunners.

Proceeds will be used to partially fund the capital expenditure budget for the calendar years 2020 and 2021, to partially repay short-term loans maturing the second half of 2020 and to fund general corporate purposes, including working capital.

Robinsons is a real estate company based in Manila

Also in local currency, Rizal Commercial Banking Corp. said it raised about PHP 16.6 billion from its offering of 3¼% two-year bonds.

Rizal closed the bond offering on July 15, ahead of its original public offer end date of July 17, due to overwhelming investor demand. Orders totaled more than five times the initially announced issue size of PHP 3 billion, according to a company announcement.

ING Bank NV, Manila Branch is the lead arranger and bookrunner and a selling agent alongside RCBC Capital Corp.

The bonds will form part of the bank’s PHP 100 billion bond and commercial paper program established in March. This will be the fifth tranche under the program, drawing from the remaining unissued amount of PHP 62.45 billion, according to a prior press release.

Proceeds will be used to support the bank’s asset growth, refinance maturing liabilities and fund other general purposes.

Rizal is based in Makati City, Philippines.

Outside of Asia, Slovenska izvozna in razvojna banka dd Ljubljana (SID Bank) priced €350 million of 1/8% five-year bonds guaranteed by the Republic of Slovenia, according to a press release.

Deutsche Bank and JPMorgan managed the deal.

Demand for the bonds exceeded expectations, with orders for over €700 million, enabling the bank to reach a competitive yield to maturity of 0.14%, the bank said.

The bonds were offered to foreign and domestic institutional investors. Among buyers, 73% of the issue was allocated to foreign investors. The biggest share was bought by banks, asset management companies, central banks and insurance companies.

Funds will mainly be used for Slovenian companies impacted by the Covid-19 crisis.

SID Bank is a lender based in Ljubljana, Slovenia.

Kazakhstan’s Tengizchevroil Finance Co. International Ltd. priced $1.25 billion of senior secured fixed-rate notes (Baa2/BBB) guaranteed by Tengizchevroil LLP, according to a notice.

The benchmark-sized offering consists of $500 million of five-year notes and $750 million of 10-year notes.

The five-year notes were priced at 99.412, and the 10-year notes were priced at 98.939.

J.P. Morgan Securities plc, Banca IMI SpA, Bank of China Ltd., London Branch, HSBC Bank plc, Citigroup Global Markets Ltd., Deutsche Bank AG, London Branch, ING Bank NV, London Branch, Mizuho International plc, MUFG Securities EMEA plc, SMBC Nikko Capital Markets Ltd., Societe Generale and UniCredit Bank AG are managers for the Regulation S and Rule 144A offering.

Based in Atyrau, Kazakhstan, Tengizchevroil is a joint venture between Chevron, ExxonMobil, KazMunayGas and LukArco.

Looking ahead, the government of the Emirate of Sharjah, acting through its finance department, is planning a benchmark dollar-denominated offering of notes due July 28, 2050, according to a notice.

Managers for the transaction are Citibank Taiwan Ltd., HSBC Bank (Taiwan) Ltd. and Standard Chartered Bank (Taiwan) Ltd.

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