Egypt, Petrobras, Romania Plan 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.

EGYPT seeks $2 billion from the country’s first one-year dollar treasury-bill sale on Nov. 29, said the Finance Ministry after the yields on pound-denominated notes surged to a record and foreign currency reserves fell to a six-year low.

(Added Nov. 24. News: TNI NEWBON EGYPT)

PETROLEO BRASILEIRO SA hired BB Securities, Bradesco BBI, Credit Agricole CIB, Deutsche Bank AG, HSBC Holdings Plc and Banco Santander SA to organize meetings with European bond investors from Nov. 28, said a banker involved in the matter.

(Update Nov. 24. News: PETR4 BZ (PETR4))

ROMANIA is still seeking a “window of opportunity” for the sale of international bonds this year even though the conditions are “tough,” Deputy Finance Minister Bogdan Dragoi said today in an interview in Bucharest after a road show in the U.S. and U.K.

(Updated Nov. 24. News: TNI ROMANIA NEWBON)

ASIA

BAOSTEEL GROUP CORP., the first Chinese mainland company planning to issue yuan-denominated bonds in Hong Kong, said there has been strong demand for the sale that could raise as much as 6.5 billion yuan ($1 billion).

“We’ve got very good feedback from investors,” said Zhou Zhuping, vice president of Baosteel, in a phone interview from Singapore after meetings with investors. “We won’t rule out the possibility that the proceeds will be used to fund overseas acquisitions of resources.”

China Merchants Securities (HK), DBS Bank Ltd., Deutsche Bank AG, HSBC Holdings Plc, ICBC International, and Standard Chartered Plc will manage the deal.

(Update Nov. 22. News: SBSA CH)

INDONESIA hired HSBC Holdings Plc, JPMorgan Chase & Co and Standard Chartered Plc for a dollar-denominated bond sale expected next year, according to a person familiar with the matter.

The notes are expected to be benchmark in size, said another person familiar with the matter, asking not to be identified because the details are private. Benchmark typically means at least $500 million.

(Added Nov. 21. News: TNI NEWBON INDO)

KOREA DEVELOPMENT BANK, or KDB, is reviving plans to sell the country’s first Islamic bonds in Malaysia after an index of ringgit debt climbed to a record.

The state-owned lender is starting a program to sell as much as 3.5 billion ringgit ($1.1 billion) of Islamic and non- Islamic securities, Kuala Lumpur-based RAM Rating Services Bhd., the largest of Malaysia’s two ratings companies, said in a Nov. 4 statement.

(Added Nov. 9. News: KDBZ KS)

KOREA MIDLAND POWER CO., a unit of Korea Electric Power Corp., asked JPMorgan Chase & Co. and Morgan Stanley to arrange investor update meetings in Europe and the U.S., according to a person familiar with the matter.

(Added Oct. 24. News: KEP US (KEP))

CENTRAL, EASTERN EUROPE

PBG SA, Poland’s third-largest construction company, aims to be ready with a Eurobond sale at the beginning of 2012 and the company will wait for the “right moment” to issue, Chief Financial Officer Przemyslaw Szkudlarczyk told reporters in Warsaw on Nov. 18. PBG, which agreed with lenders to increase the upper limit on its debt covenant, sees the cost of its debt rising 100 basis points to 200 basis points based on the agreement, the CFO said.

(Updated Nov. 18. News: PBG PW (PBG))

POLSKIE GORNICTWO NAFTOWE I GAZOWNICTWO SA, Poland’s dominant natural gas producer, may delay its euro bond sale until the first quarter of 2012 if markets stay volatile, Piotr Sudol, the head of the company’s financial department, said in Warsaw on Nov. 10.

Sudol said PGNiG is most likely to issue five-year bonds and that seven-year bonds were also an option. The first tranche of its euro bond issue will probably be around 500 million euros ($675 million), Sudol told reporters.

(Updated Nov. 10. News: PGN PW (PGN))

SLOVAKIA will go forward with plans to sell bonds abroad this year as demand remains undeterred by the collapse of the 15-month-old government and the euro debt crisis, the head of the state-debt agency said in an Oct. 18 interview.

The Debt and Liquidity Management Agency’s 2011 bond-sale calendar originally called for issuing at least 1 billion euros of debt with a maturity of seven or 10 years in September through a bank syndication. The sale, though delayed because of market declines following the crisis, is “still alive,” agency director Daniel Bytcanek said.

(Added Oct. 20. News: TNI SLOVAKIA NEWBON)

LATIN AMERICA & CARIBBEAN

INVERSORA JURAMENTO SA, an Argentine beef producer, approved a $100 million global bond issuance at its annual shareholders assembly, the company said in an Oct. 31 regulatory filing to the Buenos Aires stock exchange.

No timeframe was given for the issuance nor did the company say what the funds will be used for.

(Added Nov. 1. News: INVJ AR (INVJ))

COMISION FEDERAL DE ELECTRICIDAD, Latin America’s largest utility by revenue, hired Banco Bilbao Vizcaya Argentaria SA (BBVA), BNP Paribas SA and Citigroup Inc. to arrange meetings with bond investors, according to a person familiar with the discussions.

CFE, as the company is also known, will meet with investors in the U.S. from Nov. 30 to Dec. 1, said the person, who asked not to be identified because the discussions are private.

(Added Nov. 21. News: 1016Z MM)

EMPRESA NACIONAL DEL PETROLEO, Chile’s state oil refiner also known as ENAP, hired Banco Bilbao Vizcaya Argentaria SA, HSBC Holdings Plc, JPMorgan Chase & Co and Mitsubishi UFJ Securities to arrange meetings with bond investors, according to a person familiar with the discussions.

The meetings will take place in the U.S. and the U.K. from Nov. 25 to Nov. 30, said the person, who asked not to be identified because the discussions are private.

(Added Nov. 22. News: 1030Z CI)

MASISA SA, the Chilean forestry and wood panel company, plans to raise between $200 million and $250 million to refinance debt, Chief Financial Officer Eugenio Arteaga said in an interview on Oct. 24.

Masisa is talking to banks to place bonds in either the U.S. or Europe in the first quarter of next year, Arteaga said.

(Added Oct. 25. News: MASISA CI (MASISA))

PETROLEOS MEXICANOS, Latin America’s largest oil producer, plans to meet with bond investors this month in Canada, according to a person familiar with the discussions.

Pemex, as the state-owned company is known, hired Bank of America Corp., HSBC Holdings Plc and Scotia Capital to arrange the meetings, which will run from Nov. 22 to Nov. 24, said the person, who asked not to be identified because the discussions are private.

(Added Nov. 10. News: 1232Z MM)

PERU will probably wait until next year to sell bonds overseas as Europe’s debt crisis roils global markets, Finance Minister Miguel Castilla said.

The government doesn’t see a “massive need” for an international bond sale because of its budget surplus, Castilla said in a Nov. 11 interview in Honolulu, where he was attending the Asia-Pacific Economic Cooperation Forum.

(Updated Nov. 14. News: TNI PERU NEWBON)

PETROLEO BRASILEIRO SA, Latin America’s largest company by market value, plans to sell bonds denominated in euros and pounds when market conditions improve, according to three people familiar with the matter.

The state-run oil producer, based in Rio de Janeiro, hired Banco Bradesco SA, Deutsche Bank AG, JP Morgan Chase & Co and Banco Santander SA to manage the bond offering, said the people, who asked not to be identified because the plans haven’t been announced publicly.

(Updated Oct. 21. News: PETR4 BS)

RIO DE JANEIRO plans to sell bonds as early as next year to finance projects in the Brazilian city for the 2016 Olympic Games, Mayor Eduardo Paes told reporters on Oct. 10. The city has the “financial health” to sell debt in global markets, he said.

(Added Oct. 10. News: TNI NEWBON BRAZIL)

TELECOM ARGENTINA SA plans to sell as much as $500 million worth of debt within five years, according to a Nov. 15 filing to the Buenos Aires stock exchange.

The bond maturities will range from 30 days to 30 years, according to the filing. The Buenos Aires-based telephone company will propose the debt program to shareholders at a Dec. 15 meeting, the filing said.

(Added Nov. 16. News: TECO1 AR)

MIDDLE EAST & AFRICA

ABU DHABI NATIONAL ENERGY COMPANY, known as TAQA, is to hold meetings with fixed-income investors in Asia, London and the U.S., according to a banker with knowledge of the arrangements.

Bank of America Merrill Lynch, Mitsubishi UFJ Securities, Standard Chartered Bank and Royal Bank of Scotland Group Plc will arrange the meetings.

(Added Nov. 21. News: TAQA UH (TAQA))

AL HILAL BANK, a state-owned lender in the United Arab Emirates, hired HSBC Holdings Plc, Standard Chartered Plc and National Bank of Abu Dhabi to arrange the sale of Islamic bonds, a person familiar with the deal said.

The sale is likely to happen in the first quarter of next year, the person said, declining to be identified because the details of the transaction are confidential.

(Added Nov. 14. News: 1023350Z UH)

ALBARAKA TURK KATILIM BANKASI AS, a Turkish Islamic lender, hired Deutsche Bank AG, Emirates NBD, QInvest Llc and Noor Islamic Bank to help it sell as much as $200 million of five- year sukuk, the bank said in an Oct. 21 statement to the Istanbul Stock Exchange.

(Added Oct. 21. News: ALBRK TI (ALBRK))

QATAR, the world’s biggest exporter of liquefied natural gas, hired six banks to arrange meetings with investors in the U.S. and Europe for a possible bond sale, according to two bankers familiar with the plan.

Citigroup Inc., HSBC Holdings Plc, JPMorgan Chase & Co., Mitsubishi UFJ Securities, QNB Capital and Standard Chartered Plc will manage the offering, the bankers said, declining to be identified, because the information is private. The meetings will be held from Nov. 25 to Nov. 28, the bankers said.

(Added Nov. 22. News: TNI EM NEWBON QATAR)

MAJID AL FUTTAIM HOLDING LLC, the operator of Carrefour SA stores in the Middle East, will seek to raise about $500 million from the sale of five-year Islamic bonds to boost cash reserves, its treasury manager said.

“There is definitely a pocket of liquidity in the Islamic area that is looking for good deals,” Daniele Vecchi said in a telephone interview on Nov. 20. “We have a rating, an established business model, a proven performance track record, all the characteristics to be interesting to an Islamic investor.”

(Added Nov. 21. News: 924669Z UH)

NIGERIA, Africa’s biggest oil producer, may sell as much as $1 billion of Islamic bonds out of Malaysia next year as the country develops its Shariah-compliant financial services industry, central bank Governor Lamido Sanusi said.

The government of Africa’s most populous nation formed a technical committee, which is being trained by HSBC Holdings Plc and CIMB Group Holdings Bhd., to prepare for its maiden sale of Shariah-compliant bonds, or sukuk, which may have maturities of five to seven years, Sanusi told reporters in Kuala Lumpur on Nov. 15. Advisors have not yet been appointed for the sale, which will be decided by the finance ministry, he said.

(Added Nov. 15. News: TNI NIGERIA NEWBON)

SOUTH AFRICA hired Barclays Plc, Nedbank Group Ltd. and Rand Merchant Bank to arrange bond investor meetings in Europe and the U.S. beginning on Nov. 23, according to a person familiar with the plans who declined to be identified in accordance with policy.

To contact the reporter on this story: Krystof Chamonikolas in Prague at kchamonikola@bloomberg.net

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

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