Reliance, China Overseas price benchmark deals; Braskem, Dolphin Energy tap existing paper

By Paul A. Harris

Portland, Ore., Feb. 9 - The JPMorgan Emerging Markets Bond Index, EMBI Global, closed at a spread of 378 basis points bid on Thursday, 7 bps tighter on the day.

In a red hot primary market, India's Reliance Industries Ltd. and China Overseas priced benchmark deals while Brazil's Braskem SA and Abu Dhabi's Dolphin Energy Ltd. LLC tapped existing issues.

Reliance Industries priced a $1 billion issue of 5.4% 10-year notes (Baa2/BBB) at a 345 bps spread to Treasuries, at the tight end of price talk, which had been set in the 350 bps area.

Barclays Capital, Bank of America Merrill Lynch, Citigroup, HSBC and UBS were the bookrunners.

China Overseas Finance (Cayman) IV Ltd. priced a $500 million issue of 4 7/8% five-year senior notes (Baa2/BBB) at a 410 bps spread to Treasuries.

The spread came at the tight end of the Treasuries plus 410 bps to 420 bps final guidance.

Deutsche Bank, HSBC, ICBC International and JPMorgan were the bookrunners.

In the high-yield sector, China's Shui On Development (Holding) Ltd. priced a $400 million issue of non-rated, non-callable three-year notes at par to yield 9¾%. The yield printed on top of price talk.

BNP Paribas, Deutsche Bank, Standard Chartered Bank and UBS were the bookrunners.

The Shanghai-based property developer plans to use the proceeds to fund capital expenditures related to its real estate operations and to acquire, develop or construct assets or to repay debt.

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