The banker, however, acknowledged that
everyone has their own interpretation of the
curve and different quotes for the 2021s. In
the end, the debate around the size of the
concession became irrelevant.
0ROCEEDSûWILLûBEûUSEDûTOûRElNANCEû
PhosAgro’s outstanding 4.204% 2018s.
Bank of America Merrill Lynch, Citigroup, JP
Morgan, Sberbank CIB and VTB Capital were
global coordinators and were joined on the
books by RBI, Renaissance Capital, Societe
Generale, UBS and UniCredit.
ALFA-BANK TAKES POLE POSITIONALFA-BANKûISûSEEKINGûTOûBEûTHEûlRSTû2USSIANû
bank to issue this year as it lines up a US
dollar perpetual non-call 5.25 Tier 1 issue,
with meetings set for this week.
4HEûLENDERûBECAMEûTHEûlRSTû2USSIANûBANKû
to sell a Basel-III AT1 in October 2016. It
printed a US$400m 8% perp non-call 5.25-
year Tier 1, then added a further US$300m
through a tap a few months later.
Those notes, which are callable in
February 2022, are bid at 103.75 to yield
6.925%, according to Thomson Reuters data.
The lender is rated Ba1/BB/BB+.
Ekaterina Sidorova, an analyst at Sberbank,
reckons that the lender is looking to capitalise
on a benign market environment to top up its
regulatory capital to secure asset growth.
“The bank posted a decent pickup in loan
growth in 2017, so we think it will hope to
raise US$300m-US$500m in AT1 capital to
support balance sheet growth,” she said.
The roadshow will run for two days from
January 22, with meetings in London and
Switzerland. UBS is sole structuring adviser,
and is joined as a bookrunner by Alfa-Bank.
CREDIT BANK OF MOSCOW is set to follow
shortly afterwards, with sources saying that
the lender plans to issue a dollar-
denominated Eurobond soon.
COMMODITY PLAYERS LEAD RUSSIAN
CORPORATE CHARGE
More Russian names were added to the
primary block last week as gold miner
POLYUS and aluminium producer RUSAL both
announced dollar bond mandates.
Polyus (Ba1/BB-/BB-) said it had hired
banks for a bond with an intermediate
maturity. The company has mandated JP
Morgan ûASûWELLûASûLOCALûlRMSûGazprombank,
Renaissance Capital, Sberbank CIB and VTB
Capital. Meetings in Europe and the UK
kicked off on Friday.
Polyus was in the market a year ago with
an US$800m note through a six-year
offering. That deal printed at the wide end
of the guidance range, at 5.25%, though
leads argued it came with a minimal
concession.
Those bonds are quoted at a bid price of
103.65, according to Thomson Reuters
Eikon, to yield 4.43% or spread of 197bp over
swaps.
Fitch analysts published a supportive
outlook for the company on Thursday. “The
POSITIVEûOUTLOOKûxûREmECTSûOURûEXPECTATIONû
that incremental production from the
.ATALKAûMINEûANDûBROWNlELDûEXPANSIONSû
will support the deleveraging necessary for
an upgrade,” Fitch said.
h4HEûGROUPSûSIGNIlCANTûCASHûBALANCESûANDû
management’s commitment to reduce
leverage also underpin the positive
outlook.”
Rusal (Ba3/-/BB-), one of the world’s largest
aluminium producers, is looking to place a
benchmark bond with a maturity between
lVEûANDûSEVENûYEARS
The company has hired Citigroup, JP
Morgan and VTB Capital as global
coordinators and joint bookrunners and
Gazprombank, Natixis and Sberbank CIB as joint
lead managers and joint bookrunners.
Three delegations from the company will
begin meeting investors in London and
Moscow on Monday, before visiting Boston,
Hong Kong, Frankfurt, New York and
3INGAPOREû4HEûROADSHOWûlNISHESûONû
January 24.
Rusal made its debut in the bond market a
year ago when it priced a US$600m 5.125%
January 2022 at a very aggressive level. The
company then returned with a US$500m
5.30% six-year in April.
Both bonds priced at par. The 2022s are
bid at 101.196 and the 2023s are trading at
102.048.TURKEY
PETKIM BREAKS GROUND ON BOND
PROJECTPETKIM PETROKIMYA HOLDING (B1/-B) priced a
53MûlVE
YEARûNON
CALLûTHREEûNOTEûATûû
on Friday as the company took advantage of
positive feedback to accelerate timing on its
trade.
The Turkish petrochemical manufacturer,
which is majority-owned by State Oil
Company of Azerbaijan (Socar), put out IPTs
at 6.25% area in a trade that hit a rare timing
window.
“A Friday launch is very bold, but we’ll see
how it plays out,” said a trader.
Although a lack of peers made it one of
the harder trades to compare, a banker close
to the deal said it was a case of adding a
premium over the Turkish blue chip
corporate space, or looking for a pickup over
Socar’s 2023s. Those bonds were bid at a
yield of 4.25% at yesterday’s close, according
to Tradeweb.One investor reckoned fair value would
come well wide of IPTs, at over 7%.
“They have a leverage of over 3.5x at a
time when the petrochemical cycle is at its
PEAK vûHEûSAIDûh)TûWOULDûBEûQUITEûDIFlCULTû
for them to bring down leverage over the
NEXTûlVEûYEARSûANDûHENCEûWILLûREMAINûAû
cyclical Single B credit.”
The investor did not attribute much value
to credit support from Azerbaijan and Socar.
A second investor, Max Wolman, senior
investment manager at Aberdeen Standard
Investments, said that the company itself is
lNEûANDûTHATûTHEûDEALûSHOULDûCOMEûWITHûAû
six handle, but questioned why Petkim was
UNDERTAKINGûTHEûTRADEûINûTHEûlRSTûPLACE
The use of proceeds is for Petkim to fund
the purchase, along with cash on hand, of
ANûEFFECTIVEûûSTAKEûINûTHEû34!2ûRElNERYû
from its shareholder Socar Turkey Energy.
“This looks like a way of Socar upstreaming
dividends to themselves by getting Petkim to
BUYûAûSTAKEûINûTHEûRElNERY vûHEûSAID
John Bates, head of corporate research in
%-ûlXEDûINCOMEûATû0INEBRIDGEû)NVESTMENTS û
reckoned that 6.25% offered fair value.
“It should have some rarity value as it’s a
Single B high-yielder, is issuing a decent
US$500mn size and has a long track record
as the main player in petrochemicals in
Turkey,” he said.
'UIDANCEûWASûSETûATûûAREA ûBEFOREû
the launch came at the tight end.
Goldman Sachs and JP Morgan were joint
global coordinators. They were joined as
bookrunners by Citigroup. Societe Generale and
VTB Capital were joint lead managers.FIBABANKA STRIKES SECOND TIME
ROUNDFIBABANKA resurrected a trade that it pulled
last year, as it successfully placed a US$300m
lVE
YEARûNOTEûATûAûYIELDûOFû
The lender, Turkey’s 19th largest by total
assets, used an investor call on Wednesday
to sound out sentiment around bringing a
deal sidelined in November because of
deteriorating issuance conditions.
Fiba (BB- from Fitch) started marketing
the notes at 6.25% area.
“The pricing is fair, as the investors
compare it to Fibabanka’s outstanding Tier 2
bond, callable in November 2022, which has
a yield of 7.1%,” said an investor.
h4HEûCREDITûBENElTSûAûLOTûFROMûTHEû
reputation of its controlling shareholder
Husnu Ozyegin. Otherwise, it would have
BEENûVERYûDIFlCULTûFORûAûSMALLû4URKISHûBANKû
like Fibabanka to issue at 6% levels,” he said.
Fiba was established by billionaire
Ozyegin, who had previously founded and
sold Finansbank. His Fiba Holdings has a
71.52% stake in the bank. In addition, both
%"2$ûANDû)&#ûHAVEûûSTAKES