Primary hosts Hutchison Whampoa, Slovenia; Damac hits fresh low; British Columbia deal ahead

By Christine Van Dusen

Atlanta, Oct. 28 – China’s Hutchison Whampoa Ltd. and Slovenia sold notes on a Tuesday that saw investors keep an eye on Russia and Ukraine as the European Union met to discuss the conflict.

“We see very little prospect of sanction relief this month,” a London-based analyst said. “A mixed, muted opening here in [EM], although Turkish cash is outperforming.”

Bonds from the Middle East saw an increase in activity, a London-based trader said.

“But then again, that wasn’t really hard, given the volumes that went through on Monday,” he said.

Dubai-based Damac Real Estate Development Ltd.’s 2019s gyrated the most, trading up at 95 and then down to 94.25, he said.

“The low 94s sets a fresh low on this one,” he said.

This came against the backdrop of news that Dubai’s DIFC Investments LLC will set out on Thursday for a roadshow to market a dollar-denominated issue of Islamic bonds.

Dubai Islamic Bank, Emirates NBD Capital, Noor Bank and Standard Chartered are the bookrunners for the Regulation S sukuk.

The roadshow will begin in Singapore and travel to Hong Kong, Abu Dhabi and Dubai before concluding on Nov. 3 in London.

“We definitely saw some better offers appear in the market on some Dubai names,” the trader said. “However, Damac seemed to – perhaps unfairly – suffer.”

Long-dated bonds from Saudi Electricity Co. rallied to tighten on the month, he said.

And the market was disappointed with Dar al-Arkan Holdings’ earnings, which sent the company’s bonds 15 basis points to 20 bps wider.

British Columbia plans renminbi notes

Meanwhile in the primary, British Columbia said it is looking to issue renminbi-denominated notes, according to a filing from the sovereign.

Bank of China and HSBC are the bookrunners for the Securities and Exchange Commission-registered deal.

The proceeds will be paid into the Consolidated Revenue Fund of British Columbia and will be used for general governmental purposes.

Hutchsion Whampoa issues

During Tuesday’s session China’s Hutchison Whampoa priced a €1.5 billion sale of 1 3/8% notes due Oct. 31, 2021 at 99.748 to yield mid-swaps plus 68 bps, a market source said.

The issuer is also expected to price two dollar tranches.

The three-year dollar notes were talked at a spread in the Treasuries plus 110 bps area.

The 10-year dollar notes were talked at a spread in the Treasuries plus 150 bps area.

Barclays, Credit Agricole, Deutsche Bank, Goldman Sachs and HSBC are the bookrunners for the Rule 144A and Regulation S transaction.

Hutchison Whampoa is a Hong Kong-based business conglomerate.

“The primary market remains highly active,” the analyst said.

Slovenia prices bonds

Slovenia priced €1 billion 2¼% notes due March 25, 2022 (Ba1/A-/BBB+) at 99.095 to yield 2.386%, or mid-swaps plus 160 bps, a market source.

The notes were talked at a spread in the 165 bps area.

Barclays, Credit Agricole, Deutsche Bank and JPMorgan were the bookrunners for the Regulation S deal.

Hong Kong Aviation talks notes

Hong Kong Aviation Ltd. set talk in the 7.6% area for a renminbi-denominated issue of two-year and benchmark-sized notes, a market source said.

Guotai Junan, DBS and Wing Lung Bank are the joint global coordinators for the Regulation S deal.

CLSA and Daiwa Capital Markets are the other joint bookrunners.

Unacem launches notes

Peru’s Union Andina de Cementos SAA (Unacem) launched a $625 million issue of seven-year notes at 5 7/8%, a market source said.

The notes were talked at a yield in the low-6% area.

BBVA, Deutsche Bank and Scotiabank are the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used for financing an acquisition, to refinance existing indebtedness and for general corporate purposes.

The cement and concrete company is based in Lima.

Hainan Airlines sets roadshow

China’s Hainan Airlines Co. Ltd. has mandated DBS Bank to lead a roadshow for a Singapore dollar-denominated issue of notes, a market source said.

The roadshow will begin on Wednesday.

A Regulation S issue of notes is expected to follow.

Hainan Airlines is based in Haikou, China.

Roadshow for Santander Chile

Banco Santander Chile will set out on Nov. 4 for a roadshow to market a possible issue of notes, a market source said.

BofA Merrill Lynch, Deutsche Bank and Santander are arranging the marketing trip, which starts on the West Coast and will travel to New York and Boston before returning to the New York area to conclude on Nov. 7.

Banco Santander Chile is a lender based in Santiago, Chile.

New World sets roadshow

New World China Land Ltd. will set out on Wednesday for a roadshow to market a dollar-denominated issue of notes, a market source said.

BOC International, HSBC, BofA Merrill Lynch and Citigroup are the bookrunners for the Regulation S deal.

New World China Land is the mainland China flagship property company of Hong Kong-based developer New World Development Co. Ltd.

Global Liman seeks issuance

Turkey’s Global Liman Isletmeleri AS is looking to issue up to $275 million in notes, a market source said.

No other details were immediately available on Tuesday.

The issuer is a cruise and commercial ports company based in Karakoy, Turkey.

Tewoo does deal

On Monday, China’s Tewoo (H.K.) Ltd. priced $400 million 2 7/8% notes due Nov. 3, 2017 (A1) at 99.897 to yield 2.911%, or Treasuries plus 210 bps, a market source said.

The notes were talked at a spread in the Treasuries plus 210 bps to 215 bps area.

The final book was about $700 million from 54 orders, with 73% from banks, 12% from agencies and insurers, 11% from asset and fund managers and 4% from private banks.

ICBC (Asia), BNP Paribas and HSBC were the bookrunners for the Regulation S deal.

The issuer is a Tianjin, China-based company that focuses on commodity trade, logistics, real estate development and other businesses.

© 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.