Bloomberg News

Codelco, IPIC, KDB, Namibia, Poland Offer: Emerging Bond Alert

October 27, 2011

Oct. 27 (Bloomberg) -- The following borrowers in emerging markets are expected to sell international bonds. New information is followed by previously reported plans.

CODELCO, the world’s largest copper producer, plans to sell 10-year dollar bonds in a benchmark issue as early as today, according to a person familiar with the matter.

The Chilean company hired HSBC and Mitsubishi UFJ Securities to manage the sale, said the person, who asked not to be identified because he isn’t authorized to speak publicly about the plans.

(Added Oct. 27. News: 1006Z CI)

INTERNATIONAL PETROLEUM INVESTMENT CO., an Abu Dhabi government-owned investor, plans to sell two benchmark-sized U.S. dollar bonds to repay debt and for general corporate purposes, three bankers familiar with the deal said.

One IPIC bond maturing March 2017 is likely to be priced to yield about 275 basis points, or 2.75 percent, over Treasuries of a similar maturity, the bankers said, declining to be identified because the information is private. A second bond maturing in 2022 will probably by priced at about 325 basis points over similar Treasuries, they said. A benchmark sized- bond is usually at least $500 million.

(Updated Oct. 27. 185587Z UH)

KOREA DEVELOPMENT BANK, the state-run lender, may sell dollar bonds to yield 280 to 290 basis points more than Treasuries, according to a banker involved in the transaction.

(Upated Oct. 27. News: KDBZ KS)

NAMIBIA is selling a debut $500 million international bond to help finance its budget deficit, according to three people familiar with the transaction. The 10-year dollar-denominated securities are being sold to investors in Europe and the U.S., said an official from the central bank, who declined to be identified because the sale hasn’t been completed. The bond may be priced to yield between 5.75 percent and 6 percent, according to an investor and banker, who declined to be identified for the same reason.

(Added Oct. 27. News: TNI NAMIBIA NEWBON)

POLAND is selling its first bonds in dollars since June today after European Union leaders agreed on plans to contain the bloc’s sovereign debt crisis.

The country’s new 10.5-year dollar benchmark due in March 2022 may be priced to yield 290 basis points to 300 basis points more than U.S. Treasuries, Deputy Finance Minister Dominik Radziwill said today in a text message. The extra yield may fall to 280 basis points to 285 basis points, said a person familiar with the offering who declined to be identified.

(Added Oct. 27. News: TNI POLAND NEWBON)

ASIA

INDONESIA held bond investor meetings in the Middle East last week, said a person familiar with the plan who asked not to be identified because he’s not authorized to speak publicly about the matter. The government hired Citigroup Inc., HSBC Holdings Plc and Standard Chartered Plc to arrange the meetings, the person said.

(Added Oct. 14. News: TNI INDO NEWBON)

SHINHAN FINANCIAL GROUP CO., a South Korean lender, hired five banks for a sale of bonds denominated in U.S. dollars, according to a person familiar with the matter.

Bank of America Corp., BNP Paribas SA, Deutsche Bank AG, HSBC Holdings Plc and Standard Chartered Plc will help Shinhan Investment Corp., the brokerage unit of Shinhan Financial, to manage the sale, said the person, who asked not to be identified because the details are private.

The size and the timetable of the sale are yet to be determined, the person said.

(Added Sept. 20. News: 055550 KS)

KOREA MIDLAND POWER CO., a unit of Korea Electric Power Corp., has 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)

TAMWEEL PJSC plans to sell up to $500 million worth of Islamic bonds during the fourth quarter, acting Chief Executive Officer Varun Sood said on Sept. 27. The sukuk will be denominated in U.S. dollars or Malaysian ringgit, he said.

(Added Sept. 27. News: TAMWEEL UH)

TSINLIEN GROUP CO. hired seven banks to help it arrange a sale of yuan-denominated bonds in Hong Kong, according to a person familiar with the matter. DBS Bank Ltd., Citic Securities Co., Deutsche Bank AG, JPMorgan Chase & Co., Standard Chartered Plc, UBS AG and Wing Lung Bank will help with the possible sale of so-called Dim Sum bonds, the person said, asking not to be identified as details are private.

Meetings to market the notes to investors were held in Singapore on Oct. 20 and 21 and are being held in Hong Kong through yesterday, the person said.

(Added Oct. 24. News: 1471Z SP)

CENTRAL, EASTERN EUROPE

POLSKIE GORNICTWO NAFTOWE I GAZOWNICTWO SA’s plan to raise as much as 500 million euros in the first overseas offering by a Polish utility in a decade “is continuing and if the market is good, we will issue the first tranche,” Chief Financial Officer Slawomir Hinc said in an Oct. 5 phone interview. Poland’s largest natural gas company, also known as PGNiG, hired BNP Paribas SA, Societe Generale SA and UniCredit SpA to hold investor meetings last month.

(Updated Oct. 6. News: PGN PW)

ROMANIA selected eight banks to manage its 7 billion-euro ($9.7 billion) medium-term note program over three years, Deputy Finance Minister Bogdan Dragoi said Oct. 25 in a phone interview from Bucharest.

The dealers are Barclays Plc, BNP Paribas SA, Citigroup Inc., Deutsche Bank AG, Erste Group Bank AG, HSBC Holdings Plc, Societe Generale SA and Unicredit SpA, according to Dragoi.

He also reiterated a plan to sell bonds by the end of 2011 on international markets. It would be the second such sale this year.

(Added Oct. 25. News: TNI ROMANIA NEWBON)

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 ($1.38 billion) 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

BRAZIL plans to sell more bonds abroad this year even if it has to pay a higher yield than in previous auctions, Treasury Secretary Arno Augustin said in an interview published Sept. 30. The Treasury hasn’t decided yet if it will offer dollar- or real-denominated bonds in its next foreign auction, Augustin said in Brasilia. Brazil’s last foreign bond auction was on July 7, when it sold $550 million of its dollar bonds maturing in 2021 to yield 4.188 percent.

(Added Oct. 3. News: TNI BRAZIL NEWBON)

INTERPROPERTIES FINANCE TRUST, a unit of Peruvian holding company IFH Peru Ltd., plans to offer as much as $185 million of bonds in the international market to finance the construction of malls in Peru, said Jose Macia, head of finance at Interproperties Peru SA, which is helping manage the sale.

The 12-year bonds will be backed by profit from future and existing malls operated by Real Plaza, Macia said in an e-mailed response to questions.

(Added Sept. 27. News: IFH BH)

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)

PERU may sell bonds overseas or domestically “soon,” Finance Minister Miguel Castilla said Sept. 22. Peru is seeking a window of opportunity to sell bonds abroad, Castilla said in New York.

(Updated Sept. 22. News: TNI PERU NEWBON)

The CITY OF RIO DE JANEIRO plans to sell bonds as early as next year to finance projects 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)

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)

MIDDLE EAST & AFRICA

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)

BAHRAIN plans to sell $1 billion in Islamic bonds in October, Central Bank Governor Rasheed al-Maraj said Sept. 28 in New York. The maturity of the sukuk may be between seven to 10 years, Maraj said.

(Added Sept. 28. News: TNI NEWBON BAHRAIN)

--Editor: Brendan Walsh

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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