Bulgaria, Severstal, Q-Tel Plan Debt Sales: Emerging Bond Alert
The following emerging-market borrowers are expected to sell international bonds. New information is followed by previously reported plans.
BANCO CONTINENTAL SA plans to sell $200 million of 30-year bonds callable after 2020 as soon as today, said a person familiar with the transaction. The notes may yield 7.375 percent, the person said. Credit Suisse Group AG and BBVA are arranging the sale, the person said. The Lima-based lender is rated BBB- at Standard & Poor’s and BBB at Fitch Ratings.
BANCO INTERNACIONAL DEL PERU’s planned sale of up to $400 million of senior unsecured 10-year bonds may be priced to yield about 337.5 basis points more than similar-maturity U.S. Treasuries as soon as today, said a person familiar with the transaction. The lender known as Interbank is rated Baa3 at Moody’s Investors Service, BB+ at S&P and BBB- at Fitch.
BULGARIA may sell bonds in international markets early next year to help cover its budget deficit, said Finance Minister Simeon Djankov. The country is rated Baa3 at Moody’s, BBB at S&P and BBB- at Fitch.
JORDAN hired JPMorgan Chase & Co., HSBC Holdings Plc, Credit Suisse Group AG and Arab Bank Plc for a Eurobond sale, said Finance Minister Mohammad Abu Hammour. The country is rated Ba2 at Moody’s and BB at S&P.
QATAR TELECOM QSC hired six banks to help organize meetings next week with credit investors in Singapore, Hong Kong, Los Angeles, New York, Boston, Dubai and London ahead of a possible dollar bond sale, said a person familiar with the matter. The company is rated A2 at Moody’s, A at S&P and A+ at Fitch.
OAO SEVERSTAL plans to meet bond investors in Europe, Asia and the U.S. to discuss a sale of dollar bonds, said a banker with knowledge of the roadshow, managed by Barclays Capital, Goldman Sachs Group Inc. and Royal Bank of Scotland Group Plc. Russia’s largest steelmaker is rated BB- at S&P and B+ at Fitch.
VTB GROUP hired Citigroup Inc., Deutsche Bank AG and its VTB Capital unit for a sale of dollar bonds, a banker involved in the deal said. Russia’s second-largest lender is rated Baa1 at Moody’s and BBB at S&P and Fitch.
EXPORT-IMPORT BANK OF KOREA plans a benchmark-sized sale of dollar bonds as early as October, said a person familiar with the matter. The Seoul-based lender known as Kexim is rated A1 at Moody’s, A at S&P and A+ at Fitch.
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.
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.
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.
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.
PKO BANK POLSKI SA 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.
POLSKIE GORNICTWO NAFTOWE I GAZOWNICTWO 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.
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
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.
LATIN AMERICA & CARIBBEAN
ARGENTINA received suggestions from Wall Street bankers to sell bonds, Ambito Financiero newspaper reported, without saying how it obtained the information. One investment bank offered to arrange a sale of $1 billion of five-year bonds paying 8.75 percent interest, the Buenos Aires-based newspaper said. The proposals were made during a meeting between Economy Minister Amado Boudou and 35 investment fund managers at Deutsche Bank AG’s offices in New York, the newspaper said. Argentina is rated B3 at Moody’s Investors Service and B at Standard & Poor’s.
BANCO DEL ESTADO DE CHILE hired Deutsche Bank AG and JPMorgan Chase & Co. to arrange a benchmark-sized sale of 10- year dollar bonds as soon as this week, said a person familiar with the transaction. The state-owned lender is rated A+ at S&P.
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.
BR PROPERTIES plans to sell $300 million of perpetual notes, Fitch Ratings said in an e-mailed statement today. The Sao Paulo-based real-estate developer hired Credit Suisse Group AG and Itau Unibanco Holding SA to help it arrange meetings with investors beginning Sept. 27, according to a person familiar with the matter. The developer is rated Ba2 at Moody’s and B+ at Fitch.
BUENOS AIRES province in Argentina may sell as much as $550 million of dollar bonds after issuing the same amount in five- year debt earlier this week, Ambito Financiero newspaper reported. Argentina is rated B3 at Moody’s and B 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.
PANAMA plans its first yen-denominated bond sale with an offer to raise the equivalent of $500 million on Japanese markets early next year, Finance Minister Alberto Vallarino said. The country is rated Baa3 at Moody’s and BBB- at Standard & Poor’s and Fitch.
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