Rusal, Phosagro price benchmark deals; Credit Bank of Moscow, KOKS, Ziraat deals ahead

By Colin Hanner

Chicago, April 26 – Talked-about issuances came to fruition on Wednesday, including United Co. Rusal plc and Phosagro, with more expected by Thursday, a market source said.

The first of two benchmark deals came out of Rusal, which priced $500 million six-year bullet notes at par on Tuesday to yield 5.3%, the company said.

Price talk was 5.3% after tightening from 5.3% to 5 3/8%, a market source said.

J.P. Morgan Securities plc, VTB Capital, Citigroup, Credit Suisse, Gazprombank, RenCap, Sberbank and Sovcombank were bookrunners for the Rule 144A and Regulation S deal.

The notes will be issued via Rusal Capital DAC, a wholly owned finance subsidiary of the Moscow-based aluminum company.

Phosagro prices eurobond

Moscow-based chemical holding company Phosagro priced a $500 million 3.95% 4.5-year eurobond on Tuesday, the company said.

Initial price talk was 4% to 4¼% and eventually tightened to 3.95%, a market source said.

A roadshow for the notes took place from Thursday to Monday.

The deal was overbooked at more than $2 billion, the company said.

The deal is expected to settle on May 3.

Moody’s Investors Service gave the notes a preliminary rating of Ba1, S&P Global Ratings gave it a BBB-, and Fitch Ratings gave it a BB+ rating, in line with the company’s corporate credit rating.

Citi, Sberbank CIB, VTB Capital were joint global coordinators and bookrunners for the deal. BofA Merrill Lynch, Societe Generale, UBS and UniCredit were also bookrunners for the deal.

Credit Bank of Moscow expected

Credit Bank of Moscow is expected to price dollar-denominated perpetual bonds to yield 8 7/8% on Wednesday, a market source said.

Initial price guidance was in the 9% to 9¼% area, a market source said.

The bonds are non-callable for 5½ years, the company said.

Societe Generale CIB, JPMorgan, Citigroup and Credit Suisse are bookrunners for the deal.

The bank is privately owned and operating in Moscow and the Moscow region.

Latin America updates

“There are a couple of roadshows with deals that are ending today,” a market source said, including Brazil’s Votorantim Metais and Brazilian Development Bank and Guatemala’s Energuate.

Electricity distributor Energuate is expected to price up to $350 million of notes by Thursday, the market source said.

For the week, Latin American markets seem to be in flux with other emerging markets.

“[Latin American] markets started strong after the French election, but things feel a bit softer today on top of a nice run, which isn’t too surprising,” a market source said, adding profit-taking may be the root of the softness with new issue activity.

Companies who want to get deals done using their fourth-quarter figures are running out of time to do that, a market source said, likely causing a lack of new issuance in the next week in corporate issues.

Ecuador, which had been on the road earlier in the week, will not see a deal come out of its roadshow, the market source said.

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