Busan Bank, VimpelCom 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.

BUSAN BANK started marketing 10 billion yen ($121 million) of Samurai bonds, according to a person with direct knowledge of the transaction. The South-Korean provincial lender is rated A2 at Moody’s Investors Service.

DEVELOPMENT BANK OF KAZAKHSTAN is reopening its dollar bonds due in 2015 for sale, according to three people with knowledge of the proposed deal. The bank is rated Baa3 at Moody’s and BBB at Standard & Poor’s.

EMPRESAS PUBLICAS DE MEDELLIN plans to sell $675 million of 10-year bonds linked to the Colombian peso, according to a person familiar with the offering. The Colombian utility company is rated Baa3 at Moody’s and BBB- at Fitch Ratings.

VIMPELCOM LTD. seeks to sell $1.5 billion of five-year and 10-year bonds, according to three people with knowledge of the offering. Russia’s second-largest mobile-phone company has no credit rating information on Bloomberg.

ASIA

ASIA CEMENT CORP. plans to sell $375 million of zero-coupon exchangeable bonds, according to a statement to the Taiwan Stock Exchange. The company has no rating at Moody’s Investors Service, Standard & Poor’s or Fitch Ratings, according to Bloomberg data.

BAKRIE TELECOM plans to sell as much as $130 million of notes due May 2015, according to two people with knowledge of the transaction. The 11.5 percent notes may be priced at 106.75 to 107.00 cents on the dollar, the people said. The Indonesian wireless phone services company is rated B at Standard & Poor’s and 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.

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 S&P.

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.

PT PERTAMINA plans to sell as much as $2 billion of global bonds in the first half of this year, according to finance director Mohamad Afdal Bahaudin. Indonesia’s state oil company has no credit rating information, according to Bloomberg data.

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.

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.

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.

TURKIYE IS BANKASI plans to sell five-year bonds in dollars, according to a banker involved in the transaction. JPMorgan Chase & Co., Royal Bank of Scotland Group Plc and Standard Chartered Plc are managing the sale, the banker said. The lender is rated BBB- at Fitch and BB at Standard and Poor’s.

LATIN AMERICA & CARIBBEAN

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.

RIO DE JANEIRO will seek federal government authorization to sell $500 million of bonds to finance projects for the 2016 Olympic Games, said a city official who asked not to be identified because of government policy. Standard & Poor’s started coverage of Rio state in March of last year with a BBB- credit rating, the lowest investment grade.

To contact the reporter on this story: Andras Gergely in Budapest agergely@bloomberg.net.

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

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.