Petrobras, Nigeria, Hyundai to Sell Debt: Emerging Bond Alert

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

PETROLEO BRASILEIRO SA, Brazil’s state-controlled energy producer, plans to sell $6 billion of debt in its largest overseas offering, according to a person familiar with the transaction. The state-run oil producer known as Petrobras is rated A3 at Moody’s Investors Service, BBB- at Standard & Poor’s and BBB at Fitch Ratings.

NIGERIA plans to sell $500 million of 10-year debt at a yield of about 7 percent, according to a person familiar with the offering. Africa’s most populous country is rated B+ at S&P and BB- at Fitch.

HYUNDAI CAPITAL SERVICES INC., a unit of South Korea’s biggest automaker, plans to sell dollar-denominated debt in a benchmark offering as soon as this week, according to a person familiar with the offering. Hyundai Capital hired ING Groep NV, JPMorgan Chase & Co., Morgan Stanley, Royal Bank of Scotland Group Plc and Standard Chartered Plc to help it manage the bond sale, the person said. The notes may be rated Baa2 by Moody’s Investors Service and BBB+ by Standard & Poor’s, the person said.

RURAL ELECTRIFICATION CORP. plans to raise $500 million selling five-year bonds at a 4.25 percent coupon rate, according to a statement issued by the company today. India’s state- controlled lender to power projects is rated Baa3 at Moody’s.

ASIA

BUSAN BANK plans to meet with investors before a possible sale of a debut Samurai bond next month, said a person familiar with the matter. The South Korean lender is rated A2 by Moody’s.

KIA MOTORS CORP. seeks to raise as much as $500 million in a sale of foreign-currency bonds next month to repay maturing debt, Edaily reported, citing fixed-income industry officials. The South Korean carmaker is rated Baa3 at Moody’s, BBB at S&P and BBB- at Fitch.

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.

HALYK SAVINGS BANK OF KAZAKHSTAN JSC hired Citigroup Inc. and Deutsche Bank AG to arrange meetings with bond investors to consider an international issue in the near future, said a banker involved in the deal. The lender controlled by Kazakh President Nursultan Nazarbayev’s daughter and son-in-law is rated Ba2 at Moody’s and B+ at Standard&P.

THE PHILIPPINES will consider selling dollar-denominated debt within the year to keep the market liquid, Finance Secretary Cesar Purisima told reporters today. The country is rated Ba3 by Moody’s and BB by S&P and Fitch.

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.

WOORI BANK started marketing plans to sell 15 billion yen ($181 million) of Samurai bonds in three tranches, said a person with direct knowledge of the transaction. The unit of South Korea’s third-biggest financial company by market value is rated A1 at Moody’s and A- at S&P.

CENTRAL, EASTERN EUROPE

CZECH REPUBLIC plans to sell between 1 billion euros ($1.3 billion) and 2 billion euros of bonds denominated in the European common currency as early as May, said Deputy Finance Minister Jan Gregor. The country is rated A1 at Moody’s, A at S&P and A+ at Fitch.

KIEV will sell between $200 million and $300 million in Eurobonds in the first quarter of 2011, said Oleksandr Popov, the head of administration of the Ukrainian capital.

OAO TMK hired Barclays Capital, Deutsche Bank AG and UBS AG for a sale of dollar bonds after investor meetings in Asia and Europe starting Jan. 17, said two people with knowledge of the matter. The Russian pipemaker is rated B1 at Moody’s and B at S&P.

POLAND plans to sell yen and Swiss franc bonds in the first half of 2011, said Deputy Finance Minister Dominik Radziwill. The country is rated A2 at Moody’s and A- at S&P and Fitch.

ROMANIA plans to sell euro-denominated bonds worth about 1 billion euros ($1.3 billion) in the first quarter, said Deputy Finance Minister Bogdan Dragoi. The country is rated Baa3 at Moody’s and BB+ at S&P and Fitch.

VEB plans to sell bonds in Swiss francs, said a person with knowledge of the transaction. Barclays Capital and BNP Paribas SA are managing the sale for Russia’s state development bank, which is rated Baa1 at Moody’s and BBB at Fitch and S&P.

MIDDLE EAST & AFRICA

EMAAR PROPERTIES PJSC set up a $2 billion Islamic bond program, according to a prospectus obtained by Bloomberg News. The developer of the world’s tallest tower in Dubai said it hired HSBC Holdings Plc, Royal Bank of Scotland Group Plc and Standard Chartered Plc to arrange meetings with fixed-income investors in Asia and Europe starting Jan. 21. Moody’s rated the bond program at B1 with a negative outlook.

ESKOM HOLDINGS LTD. will sell senior unsecured 10-year dollar bonds next week, said a banker familiar with the matter. The South African electricity supplier is rated Baa2 at Moody’s and BBB+ at S&P.

DOHA BANK QSC plans to sell $500 million of senior bonds in the first quarter through its Bermuda-based subsidiary. Qatar’s third-biggest bank by assets is rated A2 Moody’s and A- at S&P.

FIRST GULF BANK PJSC plans to sell 200 million Swiss francs ($205 million) of five-year bonds that may be priced to yield 164 basis points above the benchmark mid-swap rate, said three people familiar with the deal. The Abu Dhabi-based lender is rated A2 at Moody’s and A+ at Fitch.

LATIN AMERICA & CARIBBEAN

BANCO SAFRA SA plans to sell $500 million of 10-year bonds in international markets as soon as this week, according to a person familiar with the transaction. The Brazilian bank is rated Baa3 at Moody’s Investors Service and BBB- at Standard & Poor’s.

BUENOS AIRES plans to sell $500 million of 10-year global bonds in April, said Public Credit Director Abel Fernandez. The capital of Argentina is rated B2 at Moody’s Investors Service and B at Standard & Poor’s and Fitch Ratings.

PANAMA started marketing a 41.5 billion yen ($500 million) offering of 10-year Samurai bonds, according to a person with direct knowledge of the transaction. The Central American country is rated Baa3 by Moody’s and BBB- by S&P and Fitch.

PERU will hire Simpson Thatcher & Bartlett LLP, a New York law firm, to update its U.S. bond prospectus as it considers selling debt to finance public spending during 2011 and 2012, the government said. The country is rated Baa3 at Moody’s and BBB- 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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