Banco Panamericano at tightened talk; Temasek brings $1.5 billion; cash-driven rally goes on

By Paul A. Harris

St. Louis, Oct. 19 - Emerging markets continued to rally on Monday, an emerging markets syndicate official said.

The firmness in the market is accretive, the banker added.

"There is a lot more buy interest this week than we saw last week. And the same was true the week before."

Cash inflows are stoking the market, the source added, saying that last week's inflows of nearly $1 billion - the largest cash infusion ever - are creating an ever-greater demand for paper among the institutional investors.

"Earlier in the year we were seeing only blue chip names," the syndicate banker remarked.

"Now they don't yield a lot, so investors are focusing down the credit spectrum, into double-Bs and single-Bs, which require credit work.

"When investors start doing that it's a sign that the market is truly healthy."

Banco Panamericano atop tightened talk

Brazil's Banco Panamericano SA priced a $200 million issue of 7% three-year senior unsecured notes (Ba2) at 99.337 to yield 7¼% on Monday, according to a market source.

The yield printed on top of price talk that had tightened from the range of 7¼% to 7½% last Friday.

Banco Bradesco BBI, Banco Espirito Santo de Investimento and Banco Itau were joint bookrunners for the Regulation S offering.

The issuer is a Sao Paulo, Brazil-based bank.

Temasek prices $1.5 billion

Singapore's Temasek Financial Ltd. priced $1.5 billion of 4.3% 10-year guaranteed global notes on Monday at Treasuries plus 95 basis points, an informed source said.

The deal was talked in the low-100 bps area, the source said, and priced tighter than that.

The notes (Aaa/AAA) came to market at 99.775 to yield 4.328%. They are non-callable.

Bookrunners were Deutsche Bank Securities, Goldman Sachs & Co. and Morgan Stanley & Co.

The deal was done via Rule 144A and Regulation S. It is guaranteed by parent company Temasek Holdings Ltd.

This was the second bond offering by the company, and its first since 2005, the source said. It was part of a $5 billion medium-term note program, according to a press release.

Proceeds are going for general corporate purposes.

Petrobras starts roadshow

Brazil's Petroleo Brasileiro SA will start a brief roadshow on Tuesday in San Francisco for a benchmark dollar-denominated multi-tranche notes transaction, according to a market source.

The roadshow continues on Wednesday in London and Los Angeles, then moves on to New York and Boston on Thursday.

Citigroup, HSBC, JP Morgan and Santander are joint bookrunners for the SEC registered deal.

Petrobras is a Rio de Janeiro-based multinational energy company.

Mexichem roadshow this week

Elsewhere Mexichem SAB de CV will run a roadshow this week for its $350 million offering of 10-year senior unsecured notes (Ba1//), according to a market source.

The deal, which is being led by Bank of America Merrill Lynch, is expected to price next week.

Proceeds will be used for general corporate purposes.

Mexichem is a Tlalnepantla, Mexico-based producer of PVC resins, pipes and related products.

Banco BMG mandate

Brazil's Banco BMG SA mandated Morgan Stanley, Santander, BTG Pactual and UBS as bookrunners for a $300 million of tier 2 notes (Ba3//), according to a market source.

The Rule 144A and Regulation S transaction will be launched subject to market conditions.

The roadshow will begin in Hong Kong on Oct. 21, followed by Singapore on Oct. 22, Switzerland on Oct. 23, London on Oct. 26, New York on Oct. 27 and wrapping up Oct. 28 in Boston and Los Angeles.

Banco BMG is a financial services company based in Belo Horizonte, Brazil.

Fibria dollar deal

Also from Brazil, Fibria Overseas Finance Ltd., a paper and pulp company controlled by Votorantim Celulose e Papel SA, mandated Bank of America Merrill Lynch, Deutsche Bank, and J.P Morgan as joint bookrunners for a dollar-denominated offering of notes (expected ratings Ba1/BB), a market source told Prospect News on Monday.

The Rule 144A/Regulation S deal is expected to launch, subject to market conditions, following roadshows in Europe and the United States.

BankPozitif to bring loan participation notes

Turkey's BankPozitif plans to raise capital by issuing dollar-denominated five-year loan participation notes (//BB-) via Commerzbank International AG, according to a market source.

The price guidance is the 7% area. The size of the deal remains to be determined.

JP Morgan, RBS and Standard Bank are the bookrunners for the Regulation S offering.

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