Emirates NBD Plans Debt: Emerging-Markets Bond Alert

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

EMIRATES NBD PJSC (EMIRATES)’s new 2018 notes in dollars will have a margin of 1.5 percent over Libor, according to a banker involved in the transaction. The United Arab Emirates’ biggest bank by assets hired HSBC Holdings Plc, UBS Investment Bank and Emirates NBD Capital Ltd. for a sale of seven-year dollar bonds to replace two outstanding debt issues which mature in 2016, said two bankers involved in the transaction. The bank is rated A3 at Moody’s Investors Service and A+ at Fitch Ratings.

PT MEDCO ENERGI INTERNASIONAL may sell $150 million of bonds in the second half of this year to fund capital expenditures, including investments in Libya, Hilmi Panigoro, president commissioner at the Indonesian oil producer, said in Jakarta. The company is rated B with a negative outlook at Standard & Poor’s.

URUGUAY revised its price guidance for a 40 billion yen ($490 million) sale of 10-year Samurai bonds guaranteed by the Japan Bank for International Cooperation, according to a person with direct knowledge of the transaction. The South American nation is offering the notes to investors to yield between 42 basis points and 46 basis points more than the yen swap rate, said the person. The country is rated Ba1 at Moody’s, BB+ at S&P and BB at Fitch.

ASIA

FOSUN INTERNATIONAL plans to sell five-year dollar bonds to yield around the 7.5 percent to 7.75 percent area, according to a person familiar with the matter. The company may sell as much as $300 million of five-year bonds as early as this week, a person familiar with the matter said on May 3. The Chinese company with interests in property, retail and steel is rated Ba2 at Moody’s and BB+ at S&P.

INTERNATIONAL CONTAINER TERMINAL SERVICE INC. plans to sell perpetual dollar bonds priced to yield around 8.5 percent, said a person familiar with the matter. The Philippine port operator, known as ICTSI has no ratings from Moody’s, S&P or Fitch, according to data compiled by Bloomberg.

LONKING HOLDINGS LTD. (3339) hired Credit Suisse Group AG and Standard Chartered Plc to help it sell five-year dollar bonds. The maker of wheel loaders in China is rated BB at S&P.

MALAYSIA plans to sell 10-year Islamic bonds in dollars, four people familiar with the matter said. The Southeast Asian country is rated A3 at Moody’s and A- at S&P and Fitch.

MIE HOLDINGS CORP plans to sell as much as $400 million of five-year bonds to yield around the 9.75 percent area, according to a person familiar with the matter. The company hired Bank of America Corp., Deutsche Bank AG and UBS AG for a sale of five- year bonds in dollars. The Beijing-based operator of oilfields in China is rated B+ at S&P.

NTPC Ltd. hired Barclays Plc, Citigroup Inc., Deutsche Bank AG and Royal Bank of Scotland Group Plc for the sale of $500 million of dollar bonds, said two people familiar with the matter. Asia’s biggest power producer, based in New Delhi, is rated Baa3 at Moody’s and BBB- at S&P.

RHB CAPITAL BHD. (RHBC)’s plan to sell as much as $500 million in multi-currency notes was approved by the country’s Securities Commission. The Malaysian lender has no ratings from Moody’s, S&P or Fitch, according to data compiled by Bloomberg. RHB’s Bank BHD unit is rated A3 by Moody’s and BBB+ by S&P.

RURAL ELECTRIFICATION CORP. hired Barclays, Deutsche Bank AG, Nomura Holdings Inc. and Mitsubishi UFJ Morgan Stanley Securities Co. for the sale of at least 16.1 billion yen ($200 million) of five-year Samurai bonds, said Chairman Hari Das Khunteta. The Indian state-run lender is rated Baa3 at Moody’s and BBB- at Fitch.

CENTRAL, EASTERN EUROPE

BANK GOSPODARSTWA KRAJOWEGO is “more likely” to sell bonds in euros in the third quarter than in the second, Wojciech Kowalczyk, managing director at the state-owned Polish lender, said. The bank known as BGK has no credit rating, according to data compiled by Bloomberg.

CZECH RAILWAYS AS said it hired Barclays Capital Plc, Erste Group Bank AG and Societe Generale SA to manage an international bond offering. The state-run passenger carrier, locally known as Ceske Drahy AS, has received a provisional long-term rating of Baa1 with negative outlook from Moody’s.

POLAND may offer “benchmark” bonds in dollars or euros and sell debt in a private offering to cover some of next year’s borrowing needs, Deputy Finance Minister Dominik Radziwill said. The country is rated A2 at Moody’s and A- at S&P and Fitch.

SERBIA plans to sell as much as 700 million euros in bonds, Prime Minister Mirko Cvetkovic said. About 20 percent of the securities will be in dinar, with the rest in foreign currency. The Balkan country is rated BB at S&P and BB- at Fitch.

MIDDLE EAST & AFRICA

ANGOLA plans to offer its first dollar-denominated sovereign bond, worth $500 million, in September, Finance Minister Carlos Alberto Lopes said. The African country is rated B1 at Moody’s and B+ at S&P and Fitch.

BHARTI AIRTEL LTD. (BHARTI) plans to raise $750 million selling its first overseas bonds, said Fitch, which has rated the 10-year bonds from India’s biggest mobile-phone operator BBB-.

EMIRATES hired Deutsche Bank AG, Emirates NBD, HSBC Holdings Plc and Morgan Stanley for a sale of dollar bonds, said three people familiar with the transaction. The world’s biggest airline by international traffic has no ratings from Moody’s, S&P or Fitch, according to data compiled by Bloomberg.

FIRSTRAND LTD. (FSR) is considering selling bonds in euros, dollars or pounds, said company Treasurer Andries du Toit. South Africa’s second-biggest lender plans to meet investors starting May 9 in London, said a banker involved in the arrangements. JPMorgan Chase & Co., Mitsubishi UFJ Securities International, Standard Chartered Bank and UBS AG are arranging the meetings, the banker said. The bank is rated BBB at S&P.

LATIN AMERICA & CARIBBEAN

CENTRAIS ELETRICAS DO PARA SA may sell bonds abroad after meetings with investors in Europe, Asia and the U.S., said a person familiar with the matter. The Brazilian power distributor known as CELPA is rated B3 at Moody’s and B at Fitch.

CHILE is monitoring market conditions for a possible $1.5 billion sale of bonds in U.S. dollars and pesos, according to Finance Minister Felipe Larrain. The Latin American country is rated Aa3 at Moody’s and A+ at S&P and Fitch.

JBS SA (JBSS3) plans to sell $1 billion of bonds and raise another $1.2 billion through loans in the U.S., Chief Executive Officer Wesley Batista said. The world’s biggest beef producer is rated B1 at Moody’s, BB at S&P and BB- at Fitch.

MARFRIG ALIMENTOS SA (MRFG3) plans a benchmark offering of seven- year notes as soon as tomorrow, said a person familiar with the matter. The Brazilian beef producer is rated B1 at Moody’s and B+ at S&P and Fitch Ratings.

PETROLEOS MEXICANOS hired BNP Paribas SA and Deutsche Bank AG for meetings with bond investors in Europe from May 9 to May 11, said a person familiar with the matter. The largest oil producer in Latin America, known as Pemex, is rated Baa1 at Moody’s and BBB at S&P and Fitch.

TV AZTECA SAB plans to sell $250 million of seven-year dollar bonds abroad after meetings with investors through May 17 arranged by BCP Securities and Jefferies Group Inc., a person familiar with the transaction said. Mexico’s second-largest broadcaster is rated B1 at Moody’s and BB- at Fitch.

To contact the reporter on this story: Piotr Skolimowski in Warsaw at pskolimowski@bloomberg.net

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

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