Indian Railway, OTP Mortgage, Petrobras: Emerging Bond Alert

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

INDIAN RAILWAY FINANCE CORP., the funding arm of India’s rail ministry, hired Bank of America Corp., Barclays Plc, Citigroup Inc., Deutsche Bank AG and JPMorgan Chase & Co. to help it with a possible sale of U.S. dollar bonds, according to a person familiar with the matter. The Reg S, fixed-rate notes may be sold following credit investor meetings in London, Singapore and Hong Kong which begin Aug. 5, the person said, asking not to be identified as details are private. Fitch Ratings assigned the proposed sale of $300 million worth of five year bonds an expected rating of BBB-, the lowest investment grade.

OTP MORTGAGE BANK, a Hungarian lender, is selling three- year floating-rate notes in euros that may price to yield 300 basis points more than Euribor, according to a person with knowledge of the sale who asked not to be identified because the terms are not set. BNP Paribas SA is managing the sale.

(Updated Aug. 3. News: OTP HB)

PETROLEO BRASILEIRO SA (PETR4), Brazil’s state-controlled oil company, is considering selling bonds denominated in euros or pounds, Chief Financial Officer Almir Barbassa told reporters in New York on Aug. 2. Petrobras, as the Rio de Janeiro-based company is known, is considering other currency markets to help fund its $224.7 billion investment plan after it sold a record $6 billion of dollar bonds in January. The company said July 22 that it will issue as much as $91 billion in debt and sell up to $13.6 billion of assets as part of spending plans for 2011 through 2015.

(Added Aug. 3. News: PETR4 BZ)

ASIA

ALLAHABAD BANK (ALBK), a state-run Indian lender, plans to sell $500 million of medium-term notes, Chairman Joginder Pal Dua said July 22 in Kolkata. The notes will be listed on the Singapore Stock Exchange and the money raised will be used for the Indian lender’s foreign exchange business in Hong Kong, Dua said.

(Updated July 22. News: ALBK IN)

BALLARPUR INTERNATIONAL GRAPHIC PAPER HOLDINGS BV., a unit of India’s biggest papermaker, Ballarpur Industries Ltd. (BILT), hired HSBC Holdings Plc and Royal Bank of Scotland Group Plc to arrange investor meetings, according to a person familiar with the plan. Meetings will be held in Asia and Europe starting July 28, the person said, asking not to be identified as details are private. The company may consider a sale of U.S. dollar- denominated subordinated perpetual capital securities thereafter, the person said.

(Updated July 27. News: BILT IN)

INDIAN BANK (INBK), the country’s state-owned lender, hired Citigroup Inc., HSBC Holdings Plc, Standard Chartered Plc and Royal Bank of Scotland Group Plc to arrange meetings with investors for a possible dollar bond sale, according to a person familiar with the matter.

(Added: July 11. News: INBK IN)

IDBI BANK LTD. (IDBI), an Indian state-owned lender, may consider selling 175 million Swiss francs ($219 million) of bonds as soon as this month, said Melwyn Rego, an executive director, in a telephone interview. “After the holidays, we’ll see how market conditions are,” he said. The Mumbai-based bank may review conditions in mid-August, Rego said. IDBI hired BNP Paribas SA, Credit Suisse Group AG and UBS AG to help arrange the sale, he said.

(Added July 27. News: IDBI IN)

THE PHILIPPINES may sell more global peso notes than dollar-denominated debt in 2012 as the government seeks to reduce foreign-exchange risks, Finance Undersecretary Rosalia de Leon told reporters Aug. 1. The government may opt to raise the remaining $500 million in its 2011 overseas debt sale plan from the domestic market, de Leon said. The plan is to sell about $2.25 billion worth of bonds to overseas investors next year, de Leon said in July.

(Added Aug. 1. News: TNI PHIL NEWBON)

TEMASEK HOLDINGS PTE., Singapore’s state-owned investment company, hired DBS Bank Ltd., Deutsche Bank AG, Morgan Stanley and UBS AG to help arrange meetings with bond investors, according to a person familiar with the matter.

Temasek will meet with investors in Hong Kong, Kuala Lumpur, London, Frankfurt and cities in the U.S., including New York and Boston, as part of its regular investor briefings, the person said.

(Added: July 19. News: TMSK SP)

PT PERUSAHAAN LISTRIK NEGARA, Indonesia’s state-owned utility, plans to sell as much as $2 billion of five-year global bonds this year, Indonesia’s State Owned Enterprises Minister Mustafa Abubakar said in Jakarta on July 11.

(Added: July 11. News: PLN IJ)

CENTRAL, EASTERN EUROPE

LATVIA wants to tap international bond markets later this year or at the beginning of 2012 after a successful sale of $500 million in government debt in June, Prime Minister Valdis Dombrovskis said June 24. “We don’t want to borrow anymore from the international loan package we’re receiving from the IMF and the European Commission and instead meet our financing needs from the market,” Dombrovskis said in an interview in Brussels.

(Added: June 24. News: NI LATVIA BN)

NOVA KREDITNA BANKA MARIBOR D.D., Slovenia’s biggest publicly traded lender, plans to sell bonds on international markets this year or seek a loan to repay old debt, Chief Executive Officer Matjaz Kovacic said. Kovacic declined to say how much the bank is seeking or elaborate on how much debt it needs to repay by next year to international lenders. Nova Kreditna may raise as much as 450 million euros ($645 million) through a sale of corporate bonds, Finance newspaper reported on June 17, without saying were it got the information.

(Added July 26. News: KBMR SV)

MIDDLE EAST & AFRICA

IRAN is preparing to sell $1 billion in bonds to develop local water and electricity projects, Iranians Students News Agency reported, citing Energy Minister Majid Namjou.

(Added: July 10. News: TNI IRAN NEWBON)

LATIN AMERICA & CARIBBEAN

Brazilian lender BANCO SAFRA SA plans to sell real- denominated notes due in August 2016, Moody’s Investors Service said Aug. 2, assigning the planned note sale a Baa1 foreign currency senior unsecured debt rating. JPMorgan Chase & Co. and UBS AG are arranging investor meetings this week in the U.S. and London, a person familiar with the plan said July 29 on the condition he not be identified because he’s not authorized to speak publicly about the deal.

(Updated Aug. 2. News: 1183Z BZ)

BUENOS AIRES CITY selected Barclays Plc, BTG Pactual SA and Citigroup Inc. to manage its planned sale of up to $500 million of bonds, said Abel Fernandez, the Argentine capital city’s head of public credit, in a July 29 telephone interview.

(Added Aug. 1. News: TNI ARGENT NEWBON)

CAIXA ECONOMICA FEDERAL, a state-controlled Brazilian lender, plans to sell bonds abroad for the first time this year as part of its plan to increase international funding, Valor Economico reported, citing the bank’s Finance Vice President Marcio Percival.

(Added Aug. 1. News: CEFN3 BZ)

CODELCO, the world’s largest copper producer, will seek to sell bonds within 12 months to help finance a record $4 billion investment in its Chilean mines next year, Chief Executive Officer Diego Hernandez said in an interview July 7.

(Added: July 8. News: 1006Z CI)

EMPRESA NACIONAL DE AUTOPISTA, Panama’s national highway commission, hired HSBC Holdings Plc and Global Bank to meet with bond investors, according to a person familiar with the plan.

ENA plans to sell bonds in local and international markets this month to buy a toll road owned by Empresas ICA SAB, Mexico’s largest construction company, the Finance Ministry said in an e-mailed statement yesterday.

(Added Aug. 2. News: TNI PANAMA NEWBON)

GOL LINHAS AEREAS INTELIGENTES SA (GOLL4), Brazil’s second-largest airline by market share, may sell bonds to extend Webjet Linhas Aereas SA’s debt after it completes the purchase of the smaller rival, Gol’s Chief Financial Officer Leonardo Pereira said on a conference call July 11.

(Added: July 11. News: GOLL4 BZ)

ODS SA, an Argentine construction company, may issue up to $150 million of seven-year bonds, its first debt sale in the international markets, according to Moody’s Investors Service. The sale is managed by Credit Suisse AG and the proceeds will be used to refinance its short term bank debt and for working capital needs, Moody’s analyst Daniela Cuan said July 14. The bonds will be rated B3, or six levels below investment grade, Moody’s said.

(Added: July 15. News: TNI ARGENT NEWBON)

PETROLEOS MEXICANOS, Latin America’s largest oil producer, may not sell dollar-denominated debt when it offers its remaining bonds for this year, Pemex’s Chief Financial Officer Ignacio Quesada said during a July 29 earnings conference call.

(Added July 29. News: 1232Z MM)

URUGUAY filed registration paperwork on July 25 with the U.S. Securities and Exchange Commission to sell as much as $560 million worth of bonds.

(Added July 26. News: TNI URU NEWBON)

USINA VISTA ALEGRE, a Brazilian sugarcane grower, plans to sell as much as $150 million worth of seven-year bonds in international markets, according to a person familiar with the transaction. The bonds, the company’s first, may yield about 11 percent, said the person, who asked not to be identified because he isn’t authorized to speak publicly on the matter. BTG Pactual is managing the sale, the person said.

(Added: July 21. News: TNI BRAZIL NEWBON)

To contact the reporter on this story: Drew Benson in New York at abenson9@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

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