Isbank, PTA Bank roll out new deals; Credit Bank of Moscow, KOKS, PhosAgro start roadshows

By Colin Hanner

Chicago, April 20 – Several new emerging market issues expected to come to market were released on Thursday, market sources said, with a handful of roadshows starting on the session, as well.

Yet, in overall activity, all sights point toward another weekend of geopolitical events.

“It’s a fairly calm in terms of news flow in [emerging markets] for once while global markets remain focused on the upcoming European elections in France this weekend, and with U.K. parliament having approved [Prime Minister Teresa] May’s plans for a June 8 general election.”

On the bottom half of the globe, a wave of the “mother of all protests” in Venezuela continued throughout the country.

“In clashes between opponents and supporters of President Maduro, three people were left dead across the country,” a market source said. “The opposition has called for the continuation of protests today.”

Several Venezuela and Petroleos de Venezuela bonds were unchanged, or marginally higher, on the session.

PDVSA’s 8½% notes due 2017 were unchanged at 89¼ bid, 90¼ offered.

The 9% notes due 2021 were up ½ point to 52 bid, 53 offered.

Venezuela’s 7% notes due 2018 were unchanged at 70 bid, 71 offered.

Its 9% notes due 2023 were up ½ point to 48 bid, 49 offered.

Isbank to sell notes

Turkey’s largest bank, Turkiye Is Bankasi AS (Isbank), is expected to issue dollar-denominated seven-year notes with initial price talk announced to be in the 6 3/8% area, a market source said.

Another market source said later Thursday that guidance was in the 6¼% area, plus or minus 5 basis points.

“It looks relatively cheap actually,” a market source said, adding fair value for the deal was around 6%.

Details of the book size have not been released, which indicates “it’s probably not in good shape,” a market source said.

The size of the issuance is expected to be $500 million to $750 million based off outstanding bonds, the market source said.

“The timing for today’s transaction is favorable following the constitutional referendum last Sunday, which has seen spread levels tightening,” a market source said, adding spreads were 5 bps tighter on the week on tighter rates.

PTA Bank’s notes coming

Burundi’s Eastern and Southern African Trade and Development Bank, commonly known as PTA Bank, will sell additional dollar-denominated five-year senior notes with initial price talk in the 5.3% area, a market source said.

The size of the deal has yet to be determined, but it will be consolidated and form a single series with the existing $500 million 5 3/8% notes due March 14, 2022, which were issued on March 14, a market source said.

The original notes (Ba1//BB) were priced at 99.46 to yield 5½%.

The new notes are expected to settle on April 27.

Commerzbank, MUFG and Standard Chartered are bookrunners for the Regulation S deal.

Eastern and Southern African Trade and Development Bank is a Bujumbura, Burundi-based lender for regional development.

Roadshow timeline

A roadshow for Credit Bank of Moscow’s dollar-denominated additional tier 1 bonds, non-callable for 5½ years, began on Thursday, a market source said. The notes are expected to be rated B- by Fitch Ratings.

KOKS Finance DAC, which is planning five-year loan participation notes as a part of a refinancing that includes a cash tender offer for holders of its 10¾% notes due 2018, also began a roadshow on Thursday.

The PhosAgro dollar-benchmark deal that is expected to have a four- or five-year tenor also hit the road on Thursday.

And Metalloinvest Finance DAC is on the road Thursday and Friday and is expected to price seven-year notes on Monday.

And MHP SA plans to start a three-day roadshow for an offering of six- or seven-year notes, with the size of the deal yet to be determined, a market source said.

A two-team roadshow is expected next Monday, Tuesday and Wednesday, with the first team holding meetings in London, Boston and New York, a market source said. The second team will be in Switzerland, Amsterdam, Frankfurt and London during those days.

Brazil ‘widening’

Brazil’s bonds were “widening aggressively” on Thursday, a market source said, adding “we have not seen selling to justify this, but even bonds” – like the 4 5/8% notes due 2021 – “which were super-well bid until [Wednesday] are getting hit.”

The said notes were quoted at 105½ bid, 105.85 offered.

The 4¼% notes due 2025 were quoted with a 98.95 bid, 99.40 offer.

And the 6% notes due 2026 were quoted with a 109 bid, 109.35 offer.

© 2015 Prospect News.
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