ACWA prices $600 million notes; Fibabanka updates; BNDES sells $1 billion green bonds

By Colin Hanner

Chicago, May 3 – With the new deal pipeline lighter in emerging markets on Wednesday – compared to this time last week – there were several updates to benchmark new issues.

Saudi Arabia’s ACWA Power Management and Investments One Ltd. priced $600 million 5.95% senior secured bonds due 2039 at par, a market source said.

Final price guidance tightened to 5.95% from 6% to 6 1/8% area, a market source said. Prior to that, guidance was in the 6¼% area.

The deal was oversubscribed at $1.5 billion.

The notes have an assumed rating of Baa3 from Moody’s Investors Service and a BBB- rating from S&P Global Ratings.

Citi and Jefferies are global coordinators and bookrunners for the Rule 144A and Regulation S deal. CCB Singapore, Mizuho, NCB Capital and Standard Chartered Bank are also bookrunners for the deal.

Fibabanka sets price talk

Istanbul-based private bank Fibabanka AS announced initial price talk in the 8% area for its proposed tier 2 dollar-denominated offering of notes (//BB-), a market source said.

The size of the deal is expected to be up to $300 million, the market source said.

The notes will be issued by Fiba Holding and will be consolidated with a previously issued $100 million notes issued on March 24.

Fiba Holding might decide to offer the previously issued notes in combination with the newly raised amount, a market source said.

BNDES goes big

Rio de Janeiro-based economic and social development bank, Banco Nacional de Desenvolvimento Economico e Social (BNDES or Brazilian Development Bank), priced $1 billion 4¾% seven-year green bonds to yield 4.8% on Tuesday, a market source said.

The bonds (Ba2/BB) priced at 99.706, a market source said.

BofA Merrill Lynch, Credit Agricole CIB and JPMorgan were the bookrunners for the deal.

Proceeds will be used to fund green-eligible projects.

LatAm sovereigns

With an overall flattening in the U.S. Treasury yield curve, long-maturity Latin American sovereign bonds were more inactive than expected compared to shorter-term bonds, a market source said.

In Mexico, the 5 1/8% notes due 2020 were quoted with a 108.2 bid, 108.6 offer, and its 3½% notes due 2021 were quoted with a 103.95 bid, 104.35 offer, which were “very well bid,” a market source said.

There was a market for Colombia’s 2 5/8% notes due 2023, which were quoted with a 97 bid, 97½ offer, as well as its 4% notes due 2024, quoted with a 103.65 bid, 104.15 offer.

“[The] long end [was] widening because of the rally in the long bond,” a market source said of Brazil’s bonds, adding that the 5 5/8% notes due 2041 – quoted at a 100.15 bid, 101 offer – was soaking up much of the activity in the market.

Brazil’s 6% notes due 2026 were also active, quoted with a 110.15 bid, 110½ offer.

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