Localiza resuscitates bond plans; Ukraine, Russia crisis continues; Vale, Codelco tighten

By Christine Van Dusen

Atlanta, Aug. 22 – Brazil’s Localiza Rent a Car revived plans for an issue of notes on a slow summer Friday that had investors continuing to keep an eye on the crisis in Ukraine.

Russian and Ukrainian customs officials cleared a Russian convoy that was said to be carrying aid. But the International Committee of the Red Cross did not accompany the trucks, so Ukraine viewed the vehicles’ entry as an invasion.

Ukrainian sovereign eurobonds suffered for much of the week and by its end were mixed, with the 2023s inching up 0.5 percentage points to 91.1 bid, 92.1 offered and the 2023s moving down to 95.60 bid, 96.60 offered.

“Corporate issues were mostly lower,” according to a report from Eavex Capital.

Among them were the 2018s from Donbass Fuel & Energy (DTEK), which fell 2½ percentage points to 64 bid, 66 offered. And UkrLandFarming plc’s 2018s dipped 0.8 percentage points to trade near the end of the week at 79.8 bid, 83 offered.

Looking to Latin America, high-grade credits tightened significantly, with Petroleos Brasiliero SA (Petrobras) moving in about 20 basis points, a New York-based trader said.

The week saw Brazil-based Vale SA narrow by as much as 8 bps while Coldelco’s notes tightened between 8 bps and 10 bps, he said. And Brazil’s Braskem SA saw its 2024s move in by 20 bps.

Corporate bonds from Chile also performed well and illiquid names became even more difficult to source, he said.

“It’s very quiet this morning, although I did do one trade so far,” a New York-based trader said. “Last Friday, none. First time all year.”

Localiza seeks issuance

Brazil’s Localiza Rent a Car is looking to issue notes, a market source said.

No other details on the new offering were immediately available on Friday.

The Belo Horizonte-based vehicle rental company previously canceled a proposed international offering of real-denominated notes due to market conditions.

Merrill Lynch, Bradesco BBI, Citigroup and Itau were the bookrunners for the planned notes.

Finansbank defers

Turkey’s Turkiye Finans Katilim Bankasi AS (Finansbank) will put off the issuance of any dollar-denominated bonds until 2015, a market source said.

No other details were immediately available on Friday.

Finansbank is an Istanbul-based lender.

Power Finance puts off plans

India’s Power Finance Corp. Ltd. won’t go ahead with a bond issue in the near term, a market source said.

No other details were immediately available on Friday.

The company is based in New Delhi.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.