Stoneway Capital, Polyus Gold advance new deals; Greece, South Africa, Turkey in focus

By Christine Van Dusen

Atlanta, Jan. 31 – Emerging markets-focused Stoneway Capital Corp. set a roadshow and Polyus Gold International Ltd. announced plans for a dollar-denominated issue of notes on a Tuesday that had investors seeking safe havens.

“Political uncertainty is weighing on markets in a week of heavy macro data and central bank decisions,” a London-based analyst said. “Following Trump’s executive order to ban immigrants from seven predominantly Muslim countries, his decision to fire the acting U.S. attorney general has further unnerved markets.”

Investors are feeling “unsettled,” according to a report from Schildershoven Finance BV.

Meanwhile, policymakers from the Federal Open Market Committee met on Tuesday as part of a two-day gathering. A statement should be released on Wednesday.

“No changes are expected ... but any further comments will be further scrutinized,” the analyst said. “Concerns have also emerged on the lack of progress in further European Union and International Monetary Fund bailout for Greece.”

Greece has not yet about two-thirds of the conditions required for the next disbursement, he said.

“Further concerns have emerged as the IMF warned that even full implementation of the policies, public debt and financing needs will become explosive in the long run and therefore demanded a substantial restructuring of currently outstanding loans,” he said. “The IMF board is expected to discuss Greece’s bailout on Feb 6.”

South Africa received some attention on Tuesday as well.

“Following few weeks of tranquility, domestic concerns on a potential cabinet reshuffle in South Africa combined with a weakening in governance have shaken South Africa,” the analyst said. “No new meaningful developments have occurred since.”

Africa eyed

But infighting continued in South Africa, and the ruling party was under strain.

“Domestic politics will certainly stay in focus this year ahead of the ANC National Conference in December,” the analyst said.

In other news from Africa, Zambia saw its curve tighten by as much as 25 basis points on Tuesday after the sovereign invited the IMF to discuss a program, the analyst said.

Turkey keeps performing

Turkey’s bonds remained resilient on Tuesday, even after the downgrade from Fitch Ratings.

“Following the rating revision, investors do not see any other strong negative factors that may provide downside pressure on Turkish assets,” according to a report from Schildershoven Finance BV.

Stoneway sets roadshow

Stoneway Capital began meetings with fixed-income investors on Tuesday ahead of a $500 million offering of 10-year senior secured notes (B3), in a capital expenditures deal related to power plant projects in Argentina, according to an informed source.

Roadshow stops include New York on Wednesday and Thursday and Los Angeles on Friday.

The roadshow continues in Boston on Feb. 7, London on Feb. 8 and in Frankfurt and Munich on Feb. 9.

Joint bookrunner Jefferies LLC is the sole global coordinator for the Rule 144A and Regulation S notes offer. Seaport Global is also a joint bookrunner.

The notes come with five years of call protection.

Proceeds will be used to help fund four power generating projects in Argentina.

Stoneway Capital, a private company with equity contributed by Siemens AG, was formed for the purpose of constructing, owning and operating four simple-cycle power generating plants in the Buenos Aires region of Argentina. The company has secured four power purchase agreements through Argentina’s Ministry of Energy and Mining for a 10-year period on each.

Stoneway Capital is incorporated in New Brunswick, Canada.

Polyus to price notes

In deal-related news, Polyus Gold is planning to issue dollar-denominated notes due in six years, according to a company announcement.

JPMorgan, Alfa Bank, Gazprombank, Renaissance Capital, Sberbank and VTB Capital are the bookrunners for the Rule 144A and Regulation S deal.

London-based Polyus is a gold producer with mines in Russia and Kazakhstan.

Aeropuertos sees demand

Demand for Aeropuertos Argentina 2000 SA’s new issue of $400 million notes due in 10 years, which came to the market last week with a 6.95% coupon, drew a final order book of about $2.6 billion, a market source said.

Morgan Stanley and Oppenheimer & Co. were the bookrunners for the deal.

“Aeropuertos’ 10-year maturity bond follows $8.4 billion of bond sales executed in the last two weeks by Argentine issuers, $7 billion by the government and $1.4 billion by energy companies,” Schildershoven said in a report.

The issuer is a Buenos Aires-based transportation services company.

Paul A. Harris contributed to this article.

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