Far Eastern Bank Plans to Sell Debt: Emerging-Market Bond Alert

The following borrowers in emerging markets are expected to sell international debt. New information is followed by previously reported plans.

FAR EASTERN INTERNATIONAL BANK said its board approved a plan to sell up to $200 million of five-year bonds convertible to shares. The Taiwanese lender is ranked BBB- at Fitch Ratings.

ASIA

ENERGY DEVELOPMENT CORP. plans to sell more than $200 million of bonds next year, in part to fund an 86 megawatt wind power project in northern Philippines, Francis Giles Puno, president of parent company First Gen Corp., told reporters in Manila. Energy Development has no rating from any of the major credit-assessment companies, according to data compiled by Bloomberg.

EURASIAN DEVELOPMENT BANK plans to sell as much as $500 million of bonds next year and may issue a part of the debt in yuan, rubles and the Kazakh tenge, Chairman Igor Finogenov said. The lender run by the Russian and Kazakh governments is rated A3 at Moody’s and BBB at S&P’s, according to its website.

PT SEMEN GRESEK may sell $200 million to $300 million of global bonds in the first half of 2011 to finance acquisitions, President Director Dwi Sutjipto told reporters in Jakarta. Indonesia’s biggest cement producer is rated Ba2 at Moody’s.

TATUNG CO. said its board approved plans to sell as much as $200 million of three-year convertible bonds overseas to fund working capital and pay debt. The Taipei-based manufacturer of household appliances has no credit ratings on Bloomberg data.

CENTRAL, EASTERN EUROPE

BELARUS’s government approved the sale of $500 million of bonds in Asia, Belarusian central bank Chief Pyotr Prokopovich said today, the state-run Belta news service reported on its website. The country is rated B1 at Moody’s and B+ at S&P.

KOLEJE MAZOWIECKIE, the rail services provider owned by the Mazowieckie province, hired Standard Bank to arrange bond investor meetings in Europe for a potential bonds sale in euros, according to a person with knowledge of the sale.

MOSCOW may sell 500 million euros ($658.8 million) of bonds with a maturity of at least 10 years to international investors in 2011, said Sergei Pakhomov, head of the city’s state debt committee. The Russian capital is rated Baa1 at Moody’s and BBB at S&P.

ROMANIA plans to sell bonds in euros in the first quarter, part of a three-year debt-sale program worth 7 billion euros ($9.2 billion), said Deputy Finance Minister Bogdan Dragoi. The country is rated Baa3 at Moody’s and BB+ at S&P and Fitch.

RUSSIA may sell euro-denominated bonds with a maturity of more than ten years in the next few years, Deputy Finance Minister Dmitry Pankin said at a conference in St. Petersburg today. Russia is rated Baa1 at Moody’s and BBB at S&P.

OAO RUSSIAN RAILWAYS may sell Eurobonds equivalent to $300-$600 million next year, Interfax reported, citing Pavel Ilichev, deputy director of the rail monopoly’s finance department. The company is rated Baa1 at Moody’s and BBB at S&P.

OAO SBERBANK may issue Eurobonds in 2011, Deputy Chief Executive Officer Bella Zlatkis said. Russia’s largest lender has a senior unsecured debt rating of A3 Moody’s and is ranked BBB at Fitch.

OAO SIBUR HOLDING may sell between $500 million and $1 billion of five-year Eurobonds in 2011-2013, the RIA Novosti news service reported, citing company Vice President Alexei Filipovsky. The chemicals affiliate of OAO Gazprom is rated Ba2 at Moody’s and BB at Fitch.

UNITED CO. RUSAL plans to hire banks by the end of the year to sell yuan-denominated bonds and conduct the sale as early as the first quarter of 2011. A “reasonable” amount for the bonds would be about 1 billion yuan, Rusal’s Head of Capital Markets Oleg Mukhamedshin said. The world’s biggest aluminum producer has no credit rating, according to data compiled by Bloomberg.

MIDDLE EAST & AFRICA

DUBAI’s government hired CIMB Investment Bank Bhd. as a lead arranger to help sell Islamic bonds in Malaysia that may range between $1 billion and $1.5 billion, according to a person with knowledge of the plan. Dubai doesn’t have a credit rating.

ZAMBIA is making final preparations to sell a Eurobond, though there isn’t a date set for the sale, Finance Minister Situmbeko Musokotwane said. He didn’t say how much the country planned to sell. Zambia, Africa’s biggest copper producer, postponed in 2008 a plan to seek a credit rating and sell its first global bond of $1 billion because of the global financial crisis. The country has no credit rating, according to Bloomberg data.

LATIN AMERICA & CARIBBEAN

AEROPUERTOS ARGENTINA 2000 SA hired Credit Suisse Group AG and Morgan Stanley to sell dollar bonds overseas, said a person familiar with the transaction. The company plans to meet with investors in the U.S., Europe and Asia from Dec. 10 to Dec. 14, the person said. The country’s main airport operator is rated B1 at Moody’s and B at S&P.

CIA DE SANEAMENTO BASICO DO ESTADO DE SAO PAOLO, Brazil’s biggest water utility, known as Sabesp, hired Itau Unibanco Holding SA and Banco Santander SA to arrange meetings with bond investors in the U.S. and Europe between Dec. 6 and Dec. 8, according to a person familiar with the matter. The company’s debt is rated BB by S&P and BB by Fitch.

MASTELLONE HERMANOS plans to sell $30 million of 2 1/2-year senior unsecured notes overseas as soon as Dec. 10 with help from Barclays Plc and Banco Comafi, said a person familiar with the offering. The privately owned Argentine dairy producer is rated B- at S&P.

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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