Cathay Financial, Commercial Bank of Qatar: Emerging Bond Alert

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

CATHAY FINANCIAL HOLDING CO. plans to sell up to $800 million of three-year bonds convertible to stocks overseas, the Taipei-based company said in an exchange statement today. The proceeds will be used to strengthen financial structure and for merger and acquisitions, according to the statement.

(Added Aug. 11. News: 2882 TT)

COMMERCIAL BANK OF QATAR, the Persian Gulf country’s second-biggest bank by assets, hired BNP Paribas SA, HSBC Holdings Plc, Morgan Stanley to arrange a $5 billion Euro Medium-Term Note program.

Commercial Bank of Qatar’s unit, Commercialbank Capital, will also be an arranger, the bank said in its bond prospectus published on the London Stock Exchange today. Citigroup Inc, Barclays Capital, JPMorgan Chase & Co., Deutsche Bank AG and Standard Chartered Bank Plc will also be involved in the deal, it said.

(Added Aug. 11. News: CBQK QD)

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)

IDBI BANK LTD. (IDBI), an Indian state-owned lender, will consider selling 175 million Swiss francs of bonds, the pricing for which may be decided in a week, Executive Director R.K. Bansal said in Kolkata on Aug. 8. The Mumbai-based bank hired BNP Paribas SA, Credit Suisse Group AG and UBS AG to help arrange the sale.

(Updated Aug. 10. News: IDBI IN)

INDIAN BANK (INBK), a state-owned lender, will delay selling $500 million of bonds “until the pricing is attractive,” Executive Director V. Rama Gopal said in an Aug. 10 interview. The lender had 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.

(Updated: Aug. 10. News: INBK IN)

INDIAN RAILWAY FINANCE CORP., the funding arm of India’s rail ministry, plans to sell $300 million of dollar-denominated five-year bonds by the end of August, and may pay a coupon lower than the 4.406 percent set at its March sale, Managing Director Rajendra Kashyap said in an interview in New Delhi. Indian Railway 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. Fitch Ratings assigned the proposed sale of $300 million worth of five-year bonds an expected rating of BBB-, the lowest investment grade.

(Updated Aug. 10. News: INFZ IN)

UCU BANK, a Kolkata, India-based state-owned lender, will need “at least one month to take a call” on a dollar- denominated bond sale, General Manager S. Srinivasan said in an Aug. 10 interview. The bank hired BNP Paribas, Citigroup Inc., HSBC Holdings Plc, JPMorgan Chase & Co. and Standard Chartered Plc to manage the sale, said a person, who asked not to be identified because the details are private, on Aug. 5.

(Updated Aug. 10. News: UCO IN)

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

BANK OF GEORGIA hired two investment banks to explore a possible sale of international bonds, the lender said in an Aug. 3 statement.

(Added: Aug. 4. News: GEB GG)

LATVIA is “exploring” the possibility of a potential debt sale in Asia, Prime Minister Valdis Dombrovskis said in an Aug. 10 interview. Latvia sold $500 million worth of government debt in June.

(Added: Aug. 10. 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)

LATIN AMERICA & CARIBBEAN

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, may raise as much as $2.5 billion in bonds and loans by the end of 2012 to fund record spending on its mines in Chile. The Chilean state- owned company may sell more than $1 billion in bonds, Chief Executive Officer Diego Hernandez said today in an Aug. 4 interview at Bloomberg’s office in Melbourne.

(Added: Aug. 5. News: 1006Z CI)

EMPRESA NACIONAL DE AUTOPISTA, Panama’s national highway commission, meet with bond investors Los Angeles today after meetings in Boston and New York earlier this week, according to a person who spoke on the condition he not be identified because the plan has not been made public.

Fitch Ratings said Aug. 8 that it expects to rate the planned sale of $395 million of class A and B senior notes BBB, the second-lowest investment grade. HSBC Holdings Plc and Global Bank are arranging the meetings.

(Updated Aug. 10. 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)

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)

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)

MIDDLE EAST & AFRICA

ZAMBIA, Africa’s biggest copper producer, will probably delay the sale of its planned $500 million Eurobond until after elections in September, central bank Governor Caleb Fundanga said in an Aug. 5 interview.

(Added Aug. 8. News: TNI ZAMBIA 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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