Indian Railway gives guidance; KazMunaiGaz taps bookrunners; First Gulf Bank notes steady

By Christine Van Dusen

Atlanta, Oct. 3 - Emerging markets investors on Wednesday were focused more on the evening's U.S. presidential debate than on bonds, even as job numbers from the United States showed better-than-expected improvement.

Against this backdrop, New Delhi-based Indian Railway Finance Corp. Ltd. gave initial guidance for its dollar-denominated issue of five-year notes at Treasuries plus 310 basis points, a market source said.

The deal is expected to total about $300 million.

Zambia-focused First Quantum Minerals Ltd. talked its planned $350 million issue of seven-year notes - via Jefferies, Citigroup and BNP Paribas in a Rule 144A and Regulation S deal - at a yield in the 7½% area.

In other deal-related news, Kazakhstan-based gas company KazMunaiGaz National Co. mandated RBS and VTB Capital for a roadshow beginning Oct. 10 and traveling through Hong Kong, New York and London.

And Indian Oil Corp. was on a roadshow for a 10-year issue of Singapore dollar-denominated bonds via DBS Bank and Standard Chartered.

In trading on Wednesday, the recent $650 million issue of 2.862% notes due Oct. 9, 2017 that Abu Dhabi's First Gulf Bank PJSC priced at par were seen at 100.35 bid, 100.40 offered.

Citigroup, Deutsche Bank, HSBC, National Bank of Abu Dhabi and Standard Chartered were the bookrunners for the Regulation S deal.

"Pretty steady trading today between 100.25 and 100.35 and closing out at 100.30 bid, 100.35 offered," a trader said.

SM Investments plans notes

Philippines-based SM Investments is planning a dollar-denominated issue of seven- and 10-year bonds, a market source said.

Citigroup, JPMorgan and Deutsche Bank are the bookrunners for the deal.

The Pasay City, Philippines-based company owns and develops commercial properties in the retail and tourism sectors.

Qatar Islamic Bank does deal

The final book for Qatar Islamic Bank SAQ's $750 million 2½% notes due Oct. 10, 2017 was $6 billion from 244 investors, a market source said.

The notes priced late Tuesday at par to yield 2½%, or mid-swaps plus 175 bps, tighter than talk.

About 48% of the orders came from the Middle East, 30% from Asia, 18% from the United Kingdom and Europe and 4% from the offshore United States.

Banks picked up 42%, fund managers 39%, agencies 10%, private banks 6% and insurers and pension funds 3%.

Deutsche Bank, HSBC, Qinvest and Standard Chartered were the bookrunners for the Regulation S issue of Islamic bonds.

Turk Eximbank oversubscribed

Also oversubscribed was the $250 million add-on to Export Credit Bank of Turkey SA (Turk Eximbank)'s 5 7/8% notes due April 24, 2019.

The notes came to the market on Monday at 109.875 to yield 4.136% via Barclays Capital, Citigroup, ING and Standard Chartered in a Rule 144A and Regulation S deal.

The deal attracted $980 million in orders from 66 investors, with 48% from the United States, 32% from the United Kingdom, 12% from Europe, 7% from Asia and 1% from the Middle East.

Asset managers accounted for 82%, hedge funds 8%, banks 2% and private banks 1%.

The original $500 million issue priced in April at 98.927 to yield 6.065%, or mid-swaps plus 445 bps.

Poland bonds in demand

About €3.5 billion in orders were placed by 245 investors for the new €1.75 billion issue of 3 3/8% notes due 2024 from Poland.

The notes priced Monday at par to yield 3 3/8%, or mid-swaps plus 143 bps, in line with talk.

About 24% of the orders came from the United Kingdom, 16% from Benelux nations, 9% from Poland, 8% from France, 6% from Scandinavia, 5% from Switzerland, 1% from Asia and 3% from others.

Funds took up 54%, insurance and pension funds 24%, banks 16%, hedge funds 4% and others 2%.

Commerzbank, HSBC, ING and Societe Generale were the bookrunners for the Regulation S deal.

Czech notes attract orders

The Czech Republic released further details on the final book for the recent €750 million add-on to its 2 7/8% notes due 2022, which priced at 108.333 to yield 2.871%, or mid-swaps plus 116 bps.

The €1.6 billion book attracted orders from 110 accounts, with 33% from Germany, 22% from Central and Eastern Europe, 9% from the United Kingdom and Ireland, 8% from Benelux nations, 7% from Nordics, 7% from Italy, 5% from Austria, 4% from Switzerland, 4% from Asia and 1% from others.

Funds accounted for 57%, banks 29%, insurers 7%, central banks and official institutions 6% and others 1%.

Barclays, Erste Group, Societe Generale and Unicredit were the bookrunners for the Regulation S-only deal.

DEWA plans issuance

In other news, Dubai Electricity and Water Authority (DEWA) is planning an issue of Islamic bonds, a market source said.

"DEWA's 2020s are up at 116.75, 116.87 and 117 this morning," a trader said. "It felt like one dealer tried to push it lower yesterday. The bond is about 1¾ points off the high reached three weeks ago."

And Banco de Chile priced a HK$400 million issue of 4% notes due Sept. 10, 2017 at par to yield 4%, a market source said.

Bank of America Merrill Lynch was the bookrunner for the late-Tuesday transaction.

Africa in focus

The secondary market saw two-way interest in Nigeria's Access Bank plc, a trader said. And African Export-Import Bank held in well.

"It does feel like there's some paper around in some of the sovereigns," he said. "Egypt has had a bounce this week."

From South Africa, Investec Ltd.'s issue of $300 million 3 7/8% notes due July 24, 2017 traded early Wednesday at 98 3/8 bid, 99 1/8 offered, a trader said.

The notes recently priced at 99.775 with bookrunners HSBC, ING, Investec, RBS and Standard Chartered Bank in a Regulation S deal.

By the end of the session the notes were quoted at 98½ bid, 99¼ offered.

"Small nibbling," he said. "They were quiet yesterday."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.