Greenland Hong Kong sells notes; Lat-Am bonds suffer; Chexim trades better; VEB mulls deal

By Christine Van Dusen and Aleesia Forni

Atlanta, July 31 – China’s Greenland Hong Kong Holdings Ltd. printed notes on Thursday as most bonds from Latin America moved wider following Argentina’s default, which was the sovereign’s second in the last 12 years.

Brazil’s Petroleo Brasileiro SA (Petrobras) moved out the most, a New York-based trader said, with dollar prices dropping significantly since Wednesday’s open.

Mexico’s Cemex SAB de CV also suffered, he said. “Bids pulled way back on that curve.”

And Colombia’s Grupo Aval Acciones y Valores SA, Colombia’s Ecopetrol SA and Brazil’s Braskem SA saw prices fall.

Looking to Asia, spreads were mostly mixed curing the morning, though the recent offering from Export-Import Bank of China (Chexim) was trading better.

A market source quoted the bank’s $1.5 billion of 2½% notes due 2019 at about 3 basis points tighter at 89 bps bid.

The notes due 2019 priced at 99.506 to yield Treasuries plus 90 bps.

The company’s $1.5 billion of 3 5/8% notes due 2024, which sold at Treasuries plus 120 bps, were quoted 1 bp better at 118 bps bid.

The Beijing-based lender sold the $3 billion offering on July 24.

“Overall, it was a day of profit-taking in [emerging markets] fixed income, with long dated [Hungary government bonds] looking particularly vulnerable to a shift toward risk-off sentiment,” according to a report from Erste Group Research.

Meanwhile, primary activity in the emerging markets space remained mostly quiet, save for the new deal from Greenland Hong Kong Holdings.

Chinese corporate prices bonds

China-based real estate developer Greenland Hong Kong Holdings sold $500 million 4 3/8% notes due 2017 at 99.307 to yield 4.58%, a syndicate source said.

Credit Suisse and HSBC were the joint global coordinators for the Regulation S deal.

Credit Suisse, HSBC, BOC International, JPMorgan and Morgan Stanley were the joint bookrunners, the source said.

The proceeds will be used for general corporate purposes, development of domestic projects and repayment of existing debt.

VEB considers issuance

Russia’s Vnesheconombank is considering an issue of renminbi-denominated notes, a market source said.

No other details were immediately available on Thursday.

The Moscow-based lender previously announced plans for between $1 billion and $1.5 billion of notes.

Seven Energy postpones

Nigeria-focused Seven Energy has postponed until at least next week its planned issue of $500 million notes due in seven years due to current market conditions, a market source said.

The company was expected to price the notes on Thursday after setting talk in the mid-9% area.

Deutsche Bank, Morgan Stanley and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.

The notes were to be non-callable for three years and include a change-of-control put at 101%.

The proceeds were to be used to redeem convertible bonds, to refinance existing debt and for general corporate purposes.

The energy company is based in Lagos and London.

© 2015 Prospect News.
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