Vnesheconombank, Icici Bank, Hungary, Sembcorp tap market; Qatar, Dubai paper well bid

By Christine Van Dusen

Atlanta, Nov. 18 - Russia's Vnesheconombank (VEB), India's Icici Bank Ltd., Hungary and Singapore's Sembcorp Industries Ltd. sold notes on a "moderately active" Monday amid a firmer tone for bonds from Central and emerging Europe, the Middle East and Asia.

"Moderately active for a Monday," a London-based trader said, adding he was "hoping for an increase in volumes ahead of a holiday-shortened week next week."

Bonds from Qatar were well bid during Monday's session, as were those from Dubai and its corporates.

"All fairly well supported, with buyers sighted," he said, adding there are "plenty of technical bonds around, where liquidity is dire."

Sovereign paper from Turkey tightened as much as 4 basis points on Monday, a London-based analyst said.

"Russian banks are seeing better buyers, particularly Russian Agricultural Bank on the news that it has received an RUB 30 billion capital injection," she said.

In other trading on Monday, the recent issue of perpetual notes from GEMS MEA Sukuk Ltd. - $200 million 12% bonds that priced at par - moved up 2 points, a trader said.

Abu Dhabi Islamic Bank, Credit Suisse and Morgan Stanley were the bookrunners for the Regulation S deal.

"With the issue size only $200 million it clearly isn't one to be getting short of," he said, adding he was "seeing some typical local demand."

Meanwhile, a few issuers took steps toward printing new notes. Colombia-focused Pacific Rubiales Energy Corp. set talk, Saudi Arabia's Dar Al-Arkan Real Estate Development Co. was on a roadshow, and Hong Kong Airlines subsidiary Skyliner Co. Ltd. set up a marketing trip.

Several Middle Eastern corporates planned sukuks, including Abu Dhabi-based Aldar Properties PJSC and Dubai Investments PJSC.

"Plenty of chatter about possible supply," a trader said.

Sabic notes 'popular'

Also on Monday, Saudi Arabia-based Saudi Basic Industries Corp.'s (Sabic) new €750 million 2¾% notes due Nov. 20, 2020 that priced at 99.28 to yield mid-swaps plus 135 bps were active in trading on Monday, a trader said.

Credit Agricole, ING, JPMorgan, Mitsubishi UFJ and Standard Chartered Bank were the bookrunners for the Regulation S deal.

"Sabic continues to prove very popular," he said. "The success of the 2020 is dragging the 2018s back into the game."

Perpetuals active

Investors showed interest in bonds from Dubai's Majid al-Futtaim Holdings LCC (MAF), the London trader said.

"The 2017 sukuk was quiet, but there was more activity in the 2019 and the perpetuals," he said.

Other perpetual notes were "handily bid" on Monday as U.S. Treasuries move to 2.67%, he said.

LatAm in focus

Spread-based credits from Latin America rallied tighter in trading on Monday, a New York-based trader said.

"They range from 7 bps to 15 bps tighter," he said.

Brazil's Vale SA was among the names to narrow during the session.

"Client activity was once again skewed to the sell, but there were some buyers surfacing, particularly from Europe, as has been the case recently," he said.

New notes from VEB

In its new deal, Russia's VEB priced a combined $2 billion of five- and 10-year notes, a market source said.

The deal included $850 million 4.224% five-year notes that priced at par to yield mid-swaps plus 280 bps. The notes priced tighter than talk, set at a spread in the mid-swaps plus 310 bps area.

The deal also included $1.15 billion 5.942% notes due in 10 years that priced at par to yield mid-swaps plus 320 bps. The notes were talked at a spread in the 350 bps area.

Citigroup, HSBC, JPMorgan and Mitsubishi UFJ Securities were the bookrunners for the Rule 144A and Regulation S deal.

Hungary does deal

Hungary priced $2 billion issue of 5¾% 10-year notes at 98.657 to yield 5.93%, or Treasuries plus 325 bps, a syndicate source said.

The notes priced tighter than talk, set in the 340 bps area.

BNP Paribas, Citigroup, Deutsche Bank and Goldman Sachs were the bookrunners for the Securities and Exchange Commission-registered deal.

The proceeds will be used for general funding purposes, according to a filing from the sovereign.

Prior to pricing, both VEB and Hungary's deals traded up in the gray market, a trader said.

Icici issues bonds

India's Icici Bank priced $750 million 4.8% notes due May 22, 2019 at 99.609 to yield 4.882%, or Treasuries plus 355 bps, a market source said.

The notes were talked at a spread in the Treasuries plus 360 bps area.

BofA Merrill Lynch, Barclays, Citigroup, Deutsche Bank, HSBC and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.

Icici Bank is based in Mumbai, India.

Sembcorp sells notes

Singapore-based engineering and construction contractor Sembcorp Industries sold S$200 million notes due May 27, 2024 at par to yield 3.64%, a market source said.

DBS and HSBC were the bookrunners for the deal.

Pacific Rubiales sets talk

Colombia-focused Pacific Rubiales Energy set talk in the mid-5% area for its five-year issue of dollar-denominated and benchmark-sized notes, a market source said.

BofA Merrill Lynch, Citigroup, HSBC and Itau BBA are the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used to finance acquisitions, to repay debt and for other general corporate purposes.

The notes include a change-of-control put at 101%.

Saudi issuer on roadshow

Saudi Arabia's Dar Al-Arkan Real Estate is on a roadshow for a dollar-denominated offering of Islamic bonds, a market source said.

The trip is expected to conclude on Monday.

Bank Alkhair, BofA Merrill Lynch, Deutsche Bank, Emirates NBC and Goldman Sachs are the bookrunners for the Regulation S deal.

Airline sets marketing trip

Hong Kong Airlines subsidiary Skyliner will set out on Tuesday for a roadshow to market a renminbi-denominated issue of notes, a market source said.

Deutsche Bank, ICBC Asia, BOC International, Citic Securities and Hong Kong International Securities are the bookrunners for the Regulation S deal.

Companies seek sukuks

Abu Dhabi-based Aldar Properties is looking to issue Islamic bonds, a market source said.

"Still sellers on Aldar's 2014s," a trader said.

Dubai Investments is looking to issue $300 million of Islamic bonds by the end of this year.

And International Bank of Azerbaijan is looking to issue $500 million of bonds in 2014, a market source said.

No other details were immediately available on Monday.

The government-controlled bank is based in Baku, Azerbaijan.

Slovenia prints bonds

On Friday, Slovenia priced a €1.5 billion issue of 4.7% notes due Nov. 1, 2016 at 99.604 to yield mid-swaps plus 425 bps, a market source said.

JPMorgan was the bookrunner for the Rule 144A and Regulation S deal.

© 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.