Samarco Mines $5.6bn in Demand

Brazil’s Samarco Mineracao has raised $1bn in new 2022 bonds, getting more than $5.6bn in orders for its debut in the international market. The BBB/BBB Brazilian miner priced the bond at 99.320 with a 4.125% coupon to yield 4.209%, or UST+245bp, the tight end of UST+262.5bp-area guidance which followed mid-to-high UST+200bp whispers. The deal was said to offer a 50bp pickup to Vale’s 2022 bonds, which were quoted at 195bp on a curve-adjusted basis. Approximately 310 accounts participated, with fund managers comprising 68%, insurance and pension funds 14%, banks and private banks 12% and hedge funds 6%. US buyers represented 75% of orders with 23% coming from Europe and 2% from Asia. Proceeds are marked for addressing a new capex program and for general corporate purposes. Citi, HSBC and JPMorgan managed. Samarco is 50% owned by BHP Billiton and 50% by Vale and is one of the world’s largest seaborne exporters of iron ore pellets. It is a familiar name to the loan markets, most recently having raised a $450m 11-year term loan in a club deal closed earlier this month.