Emerging markets primary active; Aramco prices $12 billion; Brazil’s CSN, Alicorp, GTLK Europe price

By Rebecca Melvin

New York, April 10 – The emerging-markets debt market saw a number of deals price on Wednesday, including the widely anticipated Saudi Arabian Oil Co.’s (Aramco) notes, which came in five tranches for $12 billion. The notes priced competitively but were heard to have mostly slipped in aftermarket trading.

Also on Wednesday CSN Resources SA, a subsidiary of Brazil’s Companhia Siderurgica Nacional (CSN), priced $1 billion of notes in two parts, including $600 million of new seven-year notes with a 7 7/8% coupon and a $400 million tap of its existing 7 5/8% notes due 2023.

The pricing was tightened from initial price thoughts.

CSN Resources is also tendering for any and all of its $547.1 million outstanding 6 7/8% senior guaranteed notes due 2019 and for part of its $1.1 billion outstanding 6½% senior notes due 2020.

Peru-based Alicorp SAA’s local-currency deal S/. 1.64 billion of 6 7/8% notes due 2027, which was marketed internationally, priced at par.

The proceeds of the nuevo sol-denominated notes will be used to repay bridge financing of its recent acquisition of Intradevco.

The Republic of Panama was also heard to have priced a bond but further information could not be obtained by Prospect News’ deadline.

For CIS, GTLK Europe Capital DAC was talking a benchmark offering of dollar-denominated six-year senior notes (expected ratings: Ba2//BB) on Wednesday to yield 6 3/8% to 6½%, according to a market source.

The issuer is a subsidiary of GTLK Europe DAC, which is owned by State Transport Leasing Co. PJSC (STLC), and both entities are guarantors of the notes.

The Regulation S deal is being sold via bookrunners J.P. Morgan Securities plc, Renaissance Capital, Gazprombank, Societe Generale, Sovcombank and VTB Capital.

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

GTLK is owned by a state-owned transport leasing company in Russia.

And for the Asia region, Beijing-based 21Vianet Group Inc., an internet-data center service provider, priced $300 million of 7 7/8% notes due 2021, and property developer China SCE Group Holdings Ltd. priced $350 million of 7 3/8% notes due 2024.

In addition, pan-Asian life insurance group AIA Group Ltd. priced $1 billion of 3.6% notes due 2029 under its recently launched $8 billion global medium-term note program, according to a notice.

Morgan Stanley, Goldman Sachs and Wells Fargo were joint global coordinators and bookrunners together with Citigroup, Credit Agricole CIB and BNP Paribas as bookrunners.

Listing of the Rule 144A and Regulation S notes on the Stock Exchange of Hong Kong Ltd. is expected to become effective on April 10.

AIA is a pan-Asian life insurance group based in Hong Kong.

And India’s GMR Hyderabad International Airport Ltd., an infrastructure company, issued $300 million of 5 3/8% senior secured notes due 2024.

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