Icici Bank, Banco do Brasil price notes; Zambia sees strong demand; more supply on horizon

By Aleesia Forni

Columbus, Ohio, Sept. 14 - Emerging markets closed out Friday on a positive note, as India's Icici Bank Ltd. sold RMB 500 million three-year notes and Banco do Brasil SA priced ¥24.7 billion of 1.8% notes.

Latin American names are looking to tap the market in the upcoming weeks, as Maestro Peru SA and Colombia Telecomunicaciones SA are both planning investor meetings that will run through the Sept. 17 week.

With the recent Federal Reserve meetings wrapped up, the market "should be ready for more supply next week," a London-based trader said.

Spreads tightened in the emerging markets bond space, as the Markit iTraxx SovX index spread tightened 5 basis points on Friday to 190 bps over Treasuries.

Meanwhile, the new issue from Zambia is seeing a great deal of activity in the secondary market after the orderbook totaled roughly $12 billion.

The debut bond "didn't disappoint," showing the high demand for African sovereign paper, the trader said.

Also in the secondary, higher beta sovereign names including Bahrain, Lebanon and Jordan were seen trading very well throughout the week, while Russia's 30-year bond tightened 13 bps on the day.

Banco do Brasil prices

Banco do Brasil priced ¥24.7 billion 1.8% senior unsecured notes (Baa1//) due 2015 at par, according to a syndicate source.

JPMorgan, BB Securities, Mizuho, SMBC, Bank of America Merrill Lynch were the bookrunners.

The lender is based in Brasilia.

Icici new issue

The primary also saw Icici Bank price a RMB 500 million issue of 4.9% three-year senior notes at par, according to a syndicate source.

HSBC and Standard Chartered Bank were the bookrunners on the deal.

The notes will be issued under the bank's $5 billion global medium-term note program.

Icici Bank is based in Mumbai.

Maestro investor meetings

Maestro Peru will begin investor meetings on Monday ahead of a possible notes offering, according to a syndicate source.

Bank of America Merrill Lynch and JPMorgan are arranging the meetings.

The proposed deal size is $200 million, according to a news release from Moody's Investors Service.

Maestro engages in the retail sale of hardware and products for home improvement and is based in Lima, Peru.

Colombia Telecom roadshow

Colombia Telecomunicaciones is also eying a tap into the market and will hold investor meetings running through Sept. 19, according to a syndicate source.

Credit Suisse, JPMorgan and HSBC are arranging the roadshow.

The telecommunications company is based in Bogota, Colombia.

Zambia active

In the secondary market, Zambia's $750 million issue of 5 3/8% 10-year notes was quoted at 102 bid, or 5.11% yield, on Friday.

The notes priced at 98.108 to yield 5 5/8% on Friday.

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