Emerging markets: Egypt, Abu Dhabi, Romania price large deals; New World is among corporate issuers

By Rebecca Melvin

New York, May 22 – The Arab Republic of Egypt brought a blockbuster $5 billion of notes in three tranches this past week and the Emirate of Abu Dhabi and Romania priced $3 billion and €3.3 billion of notes, respectively, enlivening the sovereign space.

Meanwhile, a subsidiary of Abu Dhabi’s Mamoura Diversified Global Holding PJSC sold $4 billion of senior notes in dual tranches, Hong Kong-based conglomerate New World Development Co. Ltd. sold a $600 million issue of 4½% notes and Indonesia’s PT Bank Mandiri (Persero) Tbk. priced $500 million of 4¾% notes.

The issuance speaks to a continuing resurrection of the emerging markets debt capital market after it slowed to a trickle in March and April amid fears related to the coronavirus pandemic and slower economic growth around the world.

Emerging & Central Europe was quieter this past week compared with last week and Latin America cannot seem to get its footing as Argentina stares down further defaults and Ecuador is looking for ways to restructure its heavy debt burden. But Bogota, Colombia promised an upcoming deal of COP 600 million of public debt bonds.

Bogota’s offerings will be maturities between 10 and 30 years.

Banco Itau is the structuring and placement manager.

China’s Country Garden Holdings Co. Ltd. priced $544 million 5.4%, 2025 notes and Hong Kong’s Doosan Bobcat Inc.’s U.S. subsidiary Clark Equipment Co. priced a $300 million issue of five-year senior secured notes.

Egypt prices $5 billion

The Arab republic priced $5 billion of notes in three tranches due 2024, 2032 and 2050.

The $1.25 billion tranche of 5¾% four-year notes priced at par to yield Treasuries plus 540.7 basis points. The pricing was low compared to initial talk for a yield in the 6¼% area.

The $1.75 billion tranche of 7 5/8% 12-year notes priced at par to yield Treasuries plus 694.5 bps. The pricing was below talk for a yield in the area of 8 1/8%.

The $2 billion of 8 7/8% 30-year notes priced at par to yield 748.7 bps over Treasuries. Pricing was tight compared to initial talk seen in the area of 9 3/8%.

BNP Paribas, Citigroup, HSBC, JPMorgan and Standard Chartered Bank were joint lead managers for the Regulation S and Rule 144A transaction.

Abu Dhabi brings add on deals

Abu Dhabi priced $3 billion in three add-on tranches of notes due in 2025, 2030 and 2050 (expected ratings: AA/AA) on Tuesday, according to a market source.

The $1 billion 2½% notes due April 16, 2025 priced at 103.773 to yield 1.692% or a yield spread of Treasuries plus 135 basis points. The pricing was tight to initial talk for yield in the area of Treasuries plus 165 bps.

The $1 billion of 3 1/8% notes due April 16, 2030 priced at 108.149 to yield 2.203% or a yield spread of Treasuries plus 150 bps, which was tight to initial talk for a spread in the Treasuries plus 185 bps area.

The $1 billion of 3 7/8% notes due April 16, 2050 priced at 111.89 for a 3¼% yield, which was tighter than initial price talk for a 3½% to 3.55% yield.

The Rule 144A and Regulation S notes were marketed by joint lead managers and joint bookrunners BNP Paribas, Standard Chartered Bank and JPMorgan.

Total deal sizes are now $3 billion for the 2025 and 2030 notes and $4 billion for the 2050 notes.

Abu Dhabi’s Mamoura brings $4 billion of notes

Mamoura, formerly Mubadala Development Co. PJSC, sold $4 billion of senior notes in tranches due in six, 10 and 30 years (AA/AA), according to a market source.

The $1 billion tranche of 2½% six-year notes priced at 99.884 to yield 2.521%, or a spread of 210 basis points over mid-swaps. That pricing was tight to initial price talk of mid-swaps plus 250 bps area and guidance of mid-swaps plus 220 bps area.

The $1 billion tranche of 2 7/8% 10-year notes priced at 99.012 to yield 2.99%, or mid-swaps plus 235 bps, which was tight to initial price talk in the area of 275 bps and guidance of mid-swaps plus 245 bps area.

The $2 billion tranche of 30-year notes priced at par to yield 3.95%, which was tight to initial price talk in the 4 3/8% area and guidance in the 4.1% area.

The order books at launch were in excess of $6.25 billion, $8.25 billion and $9 billion for the six-, 10- and 30-year tranches, respectively.

Banca IMI SpA London Branch, BNP Paribas, BofA Securities, First Abu Dhabi Bank, HSBC, Natixis, and Societe Generale were joint lead managers, with BNP Paribas Taipei Branch, SG Securities (HK) Ltd., Taipei Branch each as manager and HSBC Bank (Taiwan) Ltd. as lead manager of the Regulation S deal.

The proceeds will be used to refinance debt and for general corporate purposes.

Abu Dhabi’s Mamoura Diversified Global Holding is a government-owned investment company.

Romania prices 6-, 10-year notes

Romania, acting through the Ministry of Public Finance, priced €3.3 billion of notes in tranches due Feb. 26, 2026 and a 10-year note (Baa3/BBB-/BBB-), according to a market source.

The €1.3 billion 2¾% long five-year notes priced at 99.781 for a 2.793% yield and a yield spread of mid-swaps plus 305 basis points. Pricing was tightened from guidance of mid-swaps plus 330 bps and initial talk in the area of mid-swaps plus 355 bps.

The €2 billion 3.624% 10-year notes priced at par for a yield spread of mid-swaps plus 375 bps. That pricing was tightened from guidance of mid-swaps plus 400 bps and initial talk in the mid-swaps plus 425 bps area.

The combined order book for both tranches was in excess of €8 billion, skewed toward the 10-year paper.

BNP Paribas (billing and delivery), Erste Group, ING, JPMorgan, RBI and Unicredit were bookrunners of the Rule 144A and Regulation S notes.

Bank Mandiri sells $500 million of notes

Bank Mandiri priced $500 million of 4¾% notes due May 13, 2025 (Baa2//BBB-), according to a market source.

The notes were sold at 99.255.

The offering is the second from the bank’s $2 billion euro medium-term note program.

CIMB Bank Bhd., Labuan Offshore Branch, DBS Bank Ltd., Mandiri Securities Ptd. Ltd., MUFG Securities Asia Ltd. and Standard Chartered Bank managed the transaction.

Standard Chartered Bank worked as the stabilization manager.

Proceeds from the Regulation S offering will be used for general corporate purposes.

Country Garden, Clark price

China’s Country Garden Holdings Co. Ltd. priced $544 million 5.4% senior notes (BBB-) due 2025 at par, according to a notice.

Morgan Stanley, Goldman Sachs (Asia) LLC, BNP Paribas, HSBC and UBS AG Hong Kong Branch are joint global coordinators, joint lead managers and joint bookrunners for the Regulation S offering.

Fine Nation Group Ltd., a connected entity, has purchased $50 million of the notes.

Proceeds will be used to refinance existing medium- to long-term offshore debt, which will become due in the next year.

Country Garden is a Foshan, China, real estate developer.

Clark Equipment priced a $300 million issue of five-year senior secured notes (Ba3/BB+) at par to yield 5 7/8% on Thursday, according to market sources.

Bookrunners were J.P. Morgan Securities LLC, BofA Securities Inc. and Goldman Sachs & Co. LLC.

The yield came 12.5 basis points through the 6% to 6¼% price talk and well inside of initial guidance in the 6½% area, sources said.

The Dunwoody, Ga.-based supplier of agricultural, construction and materials handling equipment plans to use the proceeds for general corporate purposes.

Clark Equipment is a wholly owned subsidiary of Hong Kong-based Doosan Bobcat Inc.

© 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.