Agricultural Bank of China, BCI, Bharti Airtel, Isbank price notes; Ukraine bonds suffer

By Christine Van Dusen

Atlanta, Dec. 3 - Agricultural Bank of China Ltd., Chile's Banco de Credito e Inversiones SA, India's Bharti Airtel Ltd. and Turkey's Turkiye Is Bankasi AS (Isbank) priced notes on Tuesday as bonds from Ukraine continued to fall following a failed ouster of the government.

Bond spreads from other countries in Central and Emerging Europe, meanwhile, were relatively unchanged after tightening Monday on the back of better manufacturing data from the United States, a London-based analyst said.

Amid continuing protests, Ukraine's sovereign bonds were down another ½ point to 1 point on Tuesday with limited volumes.

Volumes for sovereign and corporate bonds from Ukraine were limited on Tuesday, said Svitlana Rusakova of Dragon Capital.

"Little trading going through," she said. "The political and macro situation in Ukraine remains highly uncertain, keeping bottom-fishers away, with a few exceptions."

In trading from the Middle East, the 12% perpetual notes from GEMS MEA Sukuk Ltd. performed well, a trader said.

"Little paper around on the other perpetuals at the moment," he said. "A small pause on Dubai names at the moment, after the Expo 2020 vote win last week. They're taking a breather."

Investors are realizing that, as host of the fair, Dubai will be required to make significant infrastructure investments, the analyst said.

"In the Middle East and North Africa, the euphoria from Dubai's victory is dying as investors contemplate the higher issuance requirements going forward to fund the investment with limited volumes," she said.

Overall, trading from the region was thin, the trader said.

"The depth is poor, liquidity is testing and covers on trades won are wide," he said.

Lat-Am 'range-bound'

Looking at Latin America, the previous day's market weakness leveled off somewhat on Tuesday, a New York-based trader said.

"Prices and spreads have stabilized and look range-bound for now," he said. "Selling from clients is still thick but has tapered, as we have actually gone a little quiet heading into the home stretch here."

Mexico's Cemex SAB de CV saw its bonds move slightly higher on Tuesday, he said, while sellers emerged for Corporacion Nacional del Cobre de Chile (Codelco).

Ooredoo unchanged

Qatar's Ooredoo QSC saw its new issue of 3.039% notes due Dec. 3, 2018 that priced at par trade on Tuesday at par bid, 100.10 offered, unchanged from Monday, a trader said.

The notes priced at a spread of mid-swaps plus 160 basis points with DBS Bank, Deutsche Bank, HSBC, QInvest and QNB Capital in a Regulation S deal.

Aldar dips

Abu Dhabi-based Aldar Properties PJSC's new $750 million 4.348% notes due Dec. 3, 2018 that priced at par were quoted Tuesday at 101.15 bid, 101.55 offered, a trader said.

The notes came to the market at a yield of 4.348%, or mid-swaps plus 290 bps.

Standard Chartered Bank, Dubai Islamic Bank, First Gulf Bank, Goldman Sachs and National Bank of Abu Dhabi were the bookrunners for the Regulation S deal.

"The music has stopped, having jumped from 100¼ on Thursday to 101.40 or 101½ on Friday," a trader said. "They have come off with some selling, taking her back to 101 or 101¼ at the close."

Chinese Bank does deal

Agricultural Bank of China priced $500 million 2 7/8% notes due Dec. 10, 2018 at 99.811 to yield 2.916%, or Treasuries plus 150 bps, a market source said.

Agricultural Bank of China, ABC International and Standard Chartered Bank were the joint global coordinators. Those banks - along with BofA Merrill Lynch, Citigroup, DBS Bank, Goldman Sachs and JPMorgan - were the bookrunners for the Regulation S deal.

The proceeds will be used for working capital and general corporate purposes.

Based in Beijing, the commercial bank has branches in mainland China, Hong Kong and Singapore.

Issuance from BCI

Chile's BCI sold CHF 120 million ¾% notes due Dec. 23, 2015 at 99.941 to yield 0.78%, or mid-swaps plus 68 bps, a market source said.

Credit Suisse and BNP Paribas were the bookrunners for the deal.

Bharti Airtel sells notes

India-based mobile telecommunications company Bharti Airtel priced €750 million 4% notes due Dec. 10, 2018 at 99.756 to yield 4.055%, or mid-swaps plus 300 bps, a market source said.

Barclays, BNP Paribas, Deutsche Bank, JPMorgan, Standard Chartered Bank and UBS Investment Bank were the bookrunners for the Regulation S transaction.

The proceeds will be used to repay and refinance existing indebtedness.

Isbank prints notes

Turkey's Isbank priced $400 million 7.85% notes due Dec. 10, 2023 at par to yield 7.85%, according to a syndicate source.

The notes were talked at a yield of 7¾% to 7.85%.

BNP Paribas, Commerzbank, JPMorgan, Morgan Stanley and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.

In October, the bank set talk in the mid-swaps plus 400 bps to 410 bps area for a dollar-denominated issue of benchmark-sized notes due in 5½ years via the same bookrunners.

Gabon markets bonds

Gabon is on a roadshow to market a dollar-denominated issue of benchmark-sized notes due in 2024, a market source said.

Citigroup, Deutsche Bank and Standard Chartered Bank are the bookrunners for the Rule 144A and Regulation S deal.

The roadshow began Monday and continued Tuesday on the West Coast of the United States. The marketing trip will head to Boston and then conclude on Wednesday in Boston.

The new deal is part of an exchange and tender offer of Gabon's $1 billion 8.2% notes due in 2017.

Montenegro sets talk

Montenegro set initial talk in the Euribor plus 595 bps area for its upcoming euro-denominated issue of three-year notes via Morgan Stanley in a Regulation S deal.

And Argentina-based petroleum and gas company Yacimientos Petroliferos Fiscales (YPF) is looking to issue $300 million of notes, a market source said.

Xinyuan final book

The final book for China-based Xinyuan Real Estate Co. Ltd.'s new $200 million 13% notes due June 6, 2019 that priced at par was about $650 million from 87 accounts, a market source said.

About 98% of the orders came from Asia and 2% from Europe.

Asset and fund managers picked up 50%, private banks 49% and others 1%.

Morgan Stanley, BofA Merrill Lynch and Barclays were the bookrunners for the Regulation S deal.

The proceeds will be used to repay debts, investment in real estate projects and for general corporate purposes.

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