Roadshows for Dalian Wanda, Tata, Lippo Karawaci, Femsa; poor liquidity, tighter spreads

By Christine Van Dusen

Atlanta, Nov. 1 - Several issuers, including China's Dalian Wanda Commercial Properties Co. Ltd., India's Tata Communications (Netherlands) BV and Indonesia's Lippo Karawaci Tbk, set out on roadshows on a lackluster Friday for emerging markets assets.

Also planning marketing trips were Mexico's Coca-Cola Femsa SAB de CV and Serbia-based SBB/Telemach Group, market sources said.

"Lackluster session, but overall spreads are closing tighter with a cheeky move to 2.61% on the 10-year Treasury," a London-based trader said. "Liquidity, overall, is poor as is usually the case for a Friday in this space."

The Markit iTraxx SovX CEEME ex-EU index spread on Friday opened at 223 basis points over Treasuries, following Thursday's spread of 225 bps. The corporate index, seen Thursday at 243 bps over Treasuries, narrowed to 242 bps on Friday.

"In Central and emerging Europe, the Middle East and Asia, dollar paper is opening tighter on the back of the U.S. Treasury move while euro paper is slightly wider," a London-based analyst said. "Turkish banks are seeing some demand this morning."

Meanwhile, bonds from Russia's OJSC MMC Norilsk Nickel saw sellers, she said.

"We still think the Fed tapering will not start until March 2014," Barclays said in a report. "Within this context and given supportive valuations and technical positions, we think investors should look for selective opportunities to tactically extend duration on the local bond curves."

The bank recommends the 2023 bonds from Mexico and India's 10-year notes.

In other news, emerging markets bond funds saw outflows of about $593 million for the week, versus $1.6 billion in the previous week, the analyst said.

"The cumulative year-to-date outflows are now $5.5 billion," she said.

Ukraine gets boost

In trading from Ukraine, sovereign bonds headed into the end of the week slightly higher after news of joint support from the European Union and International Monetary Fund, said Svitlana Rusakova of Dragon Capital.

Dalian Wanda on roadshow

China-based real estate and hospitality conglomerate Dalian Wanda Commercial Properties is on a roadshow for a dollar-denominated issue of notes, a market source said.

Barclays, BofA Merrill Lynch, Goldman Sachs, HSBC and UBS are the bookrunners for the Regulation S deal.

The roadshow began Friday and will take place in Singapore, Hong Kong and London.

Roadshow for Indonesian issuer

Indonesia-based residential and commercial urban developer Lippo Karawaci set out on Friday for a roadshow to market a dollar-denominated issue of Regulation S notes, a market source said.

Credit Suisse is the global coordinator. Credit Suisse and Raiffeisen Bank International are the joint bookrunners.

Tata marketing trip underway

India's Tata Communications V embarked on Friday for a roadshow to market a Singapore dollar-denominated issue of notes, a market source said.

ANZ Banking Group, BNP Paribas, DBS Bank, HSBC, SBI Capital and Standard Chartered Bank are the bookrunners for the Regulation S deal.

Tata Communications is part of Tata Group, a conglomerate based in Mumbai.

Mexico bottler to market bonds

Mexico-based bottler Coca-Cola Femsa will begin a roadshow on Tuesday for a possible issue of notes, a market source said.

The roadshow will start in Boston and Los Angeles and travel to New York and San Francisco before wrapping up on Nov. 7 in New York and Chicago.

Citigroup, Goldman Sachs, JPMorgan, HSBC and Mitsubishi UFJ Securities are arranging the marketing trip.

SBB to issue euro notes

Serbia-based SBB/Telemach Group plans to market a €475 million offering of seven-year senior secured notes through Thursday in a deal that is expected to play before high-yield and emerging markets audiences, according to market sources.

Global coordinator Credit Suisse will bill and deliver. BNP Paribas and Citigroup are also global coordinators. ING and KKR are joint bookrunners.

Proceeds will be used to help fund the acquisition of the company by Kohlberg Kravis Roberts.

SBB is a Kragujevac, Serbia-based cable television and broadband internet service provider.

Bulgarian issuer sells notes

Late on Thursday, Bulgarian Energy Holding EAD priced a €500 million issue of 4¼% notes due 2018 at 99.837 to yield 4.287%, or mid-swaps plus 320 bps, a market source said.

The notes were talked at a spread of mid-swaps plus 325 bps.

Citigroup and Raiffeisen Bank International were the bookrunners for the Regulation S deal.

The company previously announced plans to issue €250 million of notes this fall.

"Bulgarian Energy Holding is trading around re-offer, seeing limited activity," a trader said.

Vingroup prices bonds

Vietnam's Vingroup JSC sold $200 million 11 5/8% notes due 2018 at 99.147 to yield 11 7/8%, a market source said.

Credit Suisse was the global coordinator. Credit Suisse, Deutsche Bank and ING were the bookrunners for the Rule 144A and Regulation S deal.

The notes include a change-of-control put at 101% and an equity clawback. The notes also are non-callable for three years.

The proceeds will be transferred to Vincom Retail for funding investment projects, for working capital and for general corporate purposes.

New deal from Citic Bank

China Citic Bank International Ltd. printed a $300 million issue of 6% notes due 2024 at par to yield 6%, a market source said.

BBVA, HSBC, RBS, Goldman Sachs and Citic Securities were the bookrunners for the Regulation S deal.

China Citic Bank Corp. Ltd. recently said it received approval from the People's Bank of China to issue up to RMB 30 billion of financial bonds in China's interbank bond market.

Proceeds from those bonds would be used to support the Beijing-based bank's small and miniature enterprise loan business, as previously announced.

China Vanke prints notes

China Vanke Co. priced an S$140 million issue of 3.275% senior notes due 2017 at par to yield 3.275%, a market source said.

The notes, issued by Bestgain Real Estate Lyra Ltd., came to the market via DBS in a Regulation S deal.

China Vanke is a real estate developer based in Shenzhen, China.

Paul A. Harris contributed to this article.

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