Interbank, Gerdau, PKO to Sell Debt: Emerging-Market Bond Alert

The following emerging-market borrowers are expected to sell international bonds. New information is followed by previously reported plans.

BANCO INTERNACIONAL DEL PERU hired Bank of America Corp. and JPMorgan Chase & Co. for a sale of as much as $400 million in 10-year bonds, said a person familiar with the matter. The lender known as Interbank is rated Baa3 at Moody’s Investors Service, BB+ at Standard & Poor’s and BBB- at Fitch Ratings.

BR PROPERTIES SA hired Credit Suisse Group AG and Itau Unibanco Holding SA to help it arrange meetings with credit investors next week in Hong Kong, Singapore, New York, London and Boston, said a person familiar with the plan. The Brazilian property developer has no credit ratings, Bloomberg data shows.

GERDAU SA hired HSBC Holdings Plc, Banco Santander SA and JPMorgan Chase & Co. as underwriters for a sale of 10-year bonds in a benchmark offering abroad as soon as this week, said a person familiar with the transaction. The largest steelmaker in Latin America is rated Ba1 by Moody’s and BBB- by S&P.

PKO BANK POLSKI SA said it will sell as much as 800 million euros ($1.1 billion) of five-year Eurobonds to finance expansion and increase lending. The largest bank in Poland, which met with investors in April, hired HSBC Holdings Plc and Societe Generale SA to manage the sale. PKO is rated A2 at Moody’s.

ASIA

AXIS BANK LTD. may raise as much as $500 million in a sale of foreign-currency bonds by the end of March, Reuters reported, citing Partha Mukherjee, the bank’s president of treasury and international banking. The Indian lender is rated BBB- at S&P.

HYUNDAI MOTOR CO.’s financing unit will issue $500 million of bonds that are to be guaranteed by the parent company, according to a regulatory filing. The South Korean carmaker is rated Baa3 at Moody’s and BBB- at S&P and Fitch.

INDONESIA plans to sell Samurai bonds in the fourth quarter of this year, Finance Minister Agus Martowardojo said. Proceeds from the sale will be used to repay yen debt, according to Rahmat Waluyanto, director general at the finance ministry’s debt management office. The country is rated Ba2 at Moody’s and BB at S&P.

KOREA ELECTRIC POWER CORP. had bond investor meetings last week in Asia and the U.S., two people familiar with the matter said. The company is considering a sale of at least $500 million of bonds two people familiar with the matter said last month. The largest utility in South Korea, also known as Kepco, is rated A1 at Moody’s, A at S&P and A+ at Fitch.

KOREA FINANCE CORP. is selling as much as $750 million of six-year dollar bonds at a yield of about 187.5 basis points more than U.S. Treasuries, according to a person with knowledge of the sale. The company hired banks to arrange bond investor meetings on Sept. 10, a person familiar with the plan said. Korea Finance is rated A1 at Moody’s and A at S&P.

KOREA NATIONAL OIL CORP. plans to raise between $500 million and $1 billion selling bonds to fund acquisitions, a spokesman for the South Korean company known as KNOC said. The Gyeonggi-based company, which is engaged in a $2.6 billion hostile takeover of Dana Petroleum Plc, is rated A1 by Moody’s and A by S&P.

LG UPLUS CORP. said it hired Morgan Stanley for a sale of $300 million in two-year exchangeable bonds in Europe and Asia this month. The South Korean mobile-phone operator is rated Baa3 at Moody’s and BBB- at S&P and Fitch.

LOTTE SHOPPING plans to sell $100 million of one-year floating-rate notes this month. Proceeds will be used to repay maturing debt, Lee Sun Dae, spokesman for South Korea’s biggest department-store owner, said by telephone. The company is rated A3 at Moody’s and A- at Fitch Ratings.

NAN YA PLASTICS CORP.’s Hong Kong unit plans to sell as much as $400 million of bonds, the Taipei-based company said in a filing to the Taiwan Stock Exchange. The world’s largest processor of plastics for pipes and imitation leather is rated BBB+ at S&P.

POSCO hired Bank of America Corp., BNP Paribas SA, Deutsche Bank AG, Goldman Sachs Group Inc. and Morgan Stanley for bond investor meetings in Asia and the U.S. next month, according to a company official. The South Korean steelmaker, the world’s third-biggest, is rated A2 at Moody’s, A at S&P and A- at Fitch.

RURAL ELECTRIFICATION CORP. may sell as much as $500 million of five- or seven-year bonds in yen or dollars as early as November to exploit lower funding costs in those currencies, said Finance Director Hari Das Khunteta. India’s state-run lender to power projects is rated Baa3 at Moody’s and BBB- at Fitch.

WOORI FINANCE HOLDINGS CO. may sell $210 million in foreign-currency bonds to help fund the acquisition of Hanmi Bank in the U.S., Maeil Business Newspaper reported today, citing people it didn’t identify. The South Korean company is rated A2 at Moody’s and BBB+ at S&P and Fitch Ratings.

CENTRAL, EASTERN EUROPE

BANKAS SNORAS has hired Commerzbank to arrange meetings with investors for a planned sale of euro-denominated bonds, the bank said in a statement filed with the Vilnius Stock Exchange. It expects the meetings to begin on Sept. 13. Lithuania’s fifth- largest bank by assets is rated B+ at Fitch.

BRASKEM SA hired Deutsche Bank AG, HSBC Holdings Plc and Itau Unibanco Holding SA to arrange meetings with bond investors starting Sept. 21, according to a person familiar with the matter. Latin America’s biggest petrochemical producer is rated Ba1 by Moody’s and BB+ by S&P.

OAO GAZPROM plans to sell its first international bonds in more than a year by the end of 2010, said Yana Kolosovskaya, the company’s head of loans and guarantees. The Russian gas export monopoly is rated Baa1 at Moody’s and BBB at S&P and Fitch.

KERNEL HOLDING may sell Eurobonds by the end of this month, Interfax reported, citing a person with knowledge of the matter. ING Groep NV and JPMorgan Chase & Co. will organize the sale, the news agency said. Ukraine’s second-largest exporter of sunflower oil has no credit rating, according to data compiled by Bloomberg.

KOLEJE MAZOWIECKIE said it plans to sell as much as 100 million euros ($130 million) of bonds in the fourth quarter. The Polish railway company that operates in Mazowsze region hired Standard Bank Plc to manage the sale. Koleje has no credit rating, according to data compiled by Bloomberg.

POLSKIE GORNICTWO NAFTOWE I GAZOWNICTWO said it hired Societe Generale SA, BNP Paribas SA and UniCredit SpA to manage its planned sale of Eurobonds. Poland’s dominant gas distributor delayed the sale of 500 million euros of five-year bonds until the first quarter of 2011, Chief Financial Officer Slawomir Hinc said on Aug. 31. The company known as PGNiG is rated Baa1 at Moody’s and BBB+ at S&P.

ROMANIA plans to sell at least 1 billion euros ($1.3 billion) of euro-denominated bonds by the end of this year said, Finance Minister Sebastian Vladescu. Erste Group Bank AG and Societe Generale SA were selected to manage the sale. Romania is rated Baa3 at Moody’s and BB+ at S&P.

SERBIA plans to raise $400 million by the end of the year selling Eurobonds backed by a World Bank guarantee, Branislav Toncic, head of the country’s debt management agency said. The sale will be a “closed, private placement,” Toncic said. Serbia is rated BB- by S&P and BB- by Fitch.

OAO TMK plans to sell ruble bonds and Eurobonds to refinance $3.6 billion of debt, Senior Vice President Vladimir Shmatovich said. Russia’s biggest producer of steel pipes is rated B1 by Moody’s and B by S&P.

YASAR HOLDINGS hired Barclays Plc for a sale of five-year notes in dollars, said a person familiar with the matter. The Turkish company that makes dairy and meat products, paint and paper plans to meet investors from Sept. 20 in Germany, Switzerland, the Netherlands and the U.K., said the person. Yasar is rated B2 at Moody’s and B at Fitch.

MIDDLE EAST & AFRICA

ALBARAKA BANKING GROUP said it plans to sell $200 million of Islamic bonds by the end of the year. The largest publicly traded Islamic lender in Bahrain is rated BBB- at S&P.

BURGAN BANK SAK may sell $300 million to $500 million of 10-year Tier 2 bonds in dollars that may be priced to yield in the low 8 percent range, said two people familiar with the offering. JPMorgan Chase & Co., Morgan Stanley and Standard Chartered Plc are managing the sale. The Kuwaiti lender is rated A2 at Moody’s and BBB+ at S&P.

ISLAMIC DEVELOPMENT BANK plans to sell $1 billion of Islamic bonds with maturities of five, seven and 10 years in the fourth quarter to fund development projects, said Vice President Abdul Aziz Al Hinai. The Saudi Arabia-based lender is rated Aaa at Moody’s and AAA at S&P and Fitch.

JORDAN is in the final stages of hiring banks including JPMorgan Chase & Co., HSBC Holdings Plc, Credit Suisse Group AG and Arab Bank Plc to manage a sale of a $500 million Eurobond maturing in five years to help finance the budget deficit, Finance Minister Mohammad Abu Hammour said in an interview. The country is rated Ba2 at Moody’s, and BB at S&P.

KENYA ELECTRICITY GENERATING CO. may sell $1 billion worth of bonds to fund expansion. The debt may be sold domestically or as “a foreign-currency denominated bond, which would be issued outside” Kenya, Managing Director Eddy Njoroge said. KenGen, as the company is known, has no credit ratings, according to data compiled by Bloomberg.

LATIN AMERICA & CARIBBEAN

BOLIVIA plans to sell debt abroad in the first half of 2011, its first international bond sale in more than 70 years, Viviana Arinez, a Finance Minister spokeswoman, said in an interview. The country’s debt is rated B2 by Moody’s and B by Standard & Poor’s.

CENTRAIS ELETRICAS BRASILEIRAS plans to sell $1 billion in bonds this year and is also in talks with banks for a syndicated loan, Chief Financial Officer Armando Casado said on Aug. 17. Eletrobras Chief Executive Jose Muniz said in February that the company had planned to sell as much as $2 billion in bonds by the end of the first half of 2010. Latin America’s largest utility is rated BBB- at S&P and Fitch.

COSTA RICA will sell its first international bonds since 2004 after Moody’s raised the country’s credit rating to Baa3, said Laura Chinchilla, the country’s president. The Central American country is rated BB at S&P and Fitch.

GRUPO FERTINAL SA hired UBS AG to underwrite its sale of $200 million of five-year notes, a person familiar with the offering said. The Mexican producer of fertilizers is rated B2 at Moody’s and B at S&P.

MEXICO hired Nomura Securities Co., Mitsubishi UFJ Morgan Stanley Securities Co. and Mizuho Securities Co. to manage the sale of about 150 billion yen ($1.8 billion) of bonds backed by the Japan Bank for International Cooperation in October, said Octavio Lara, deputy general director of debt issuance at the Ministry of Finance and Public Credit of Mexico. The country is rated Baa1 at Moody’s and BBB at S&P and Fitch.

To contact the reporter on this story: Krystof Chamonikolas in Prague at kchamonikola@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

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