China Shipping, Kookmin join parade of Asian issuers; Kipco advances sole Middle Eastern deal

By Christine Van Dusen

Atlanta, Jan. 21 - China Shipping Overseas Finance 2013 Ltd. and South Korea's KB Kookmin Bank on Tuesday printed notes, followed closely on the heels of the numerous other Asian corporate issuers that have priced bonds so far this week.

Among the Asian corporates to do deals on Monday, which was Martin Luther King Day in the United States, were China South City Holdings Ltd., Greentown China Holdings Ltd. and China's CIFI Holdings (Group) Co. Ltd.

Meanwhile, the deluge of issues expected from the Middle East failed to materialize, with just Kuwait Projects Co. (Kipco) taking steps toward the market.

"There are just the eight days left in January, and just the one [Middle Eastern] deal announced," a London-based trader said.

In trading from the region, Emirates Islamic Bank saw its 2023s "brutally squeezed," he said.

"I think switching from them into Abu Dhabi Commercial Bank's 2023s looks like a good entry point here," he said.

From Russia, investors sold energy and bank bonds while Turkey was quiet, a London-based analyst said.

In deal-related news, Hong Kong and China Gas Co. (Towngas) set talk, Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Ltd. and Russia's DeltaCredit Bank set roadshows and Chile's Empresa de Transporte de Pasajeros Metro SA (Metro de Santiago) mandated bookrunners.

The day also saw Israel set the tenor for its upcoming deal, Turkiye Is Bankasi AS (Isbank) seeking to issue notes and Colombia looking to print dollar bonds this month.

Middle East in focus

Taking a closer look at trading from the Middle East, front-dated bonds - including Aldar Properties PJSC's 2014s - showed solid value on Tuesday, a trader said.

"Majid Al Futtaim Holdings continues to trade week," he said. "The seniors are 26 to 34 basis points better on the month and their perpetual is the best part of 80 bps tighter."

Bahrain, he said, maintained a decent bid.

"The credit has still had a superb run," he said. "It's the best part of 30 bps to 35 bps tighter over

the month," he said.

Kipco picks banks

In other news from the region, Kuwait-based Kipco has mandated BNP Paribas, HSBC and JPMorgan for a dollar-denominated issue of notes that will be marketed during a roadshow that will begin on Thursday, a market source said.

"The Kuwait Projects curve has re-priced down a ½ point to ¾ point in response to the new planned issue," a trader said.

Said another trader, "Kipco bonds reacted a little defensively and were marked down by 50 cents to 75 cents. Nothing major really, and in fact ... still decent demand for the name. A lot obviously depends on tenor and pricing, but this name is typically a little of a forgotten name regionally."

Issue from Chinese corporate

China Shipping Overseas Finance priced $500 million 4¼% notes due 2019 at 99.546 to yield Treasuries plus 270 bps, a market source said.

Bank of China, Deutsche Bank, BofA Merrill Lynch, ANZ, Bank of Communications Hong Kong, Barclays, DBS and ING were the bookrunners for the Regulation S deal.

Bank of China, Deutsche Bank and BofA Merrill Lynch were also the joint global coordinators.

Primary hosts Kookmin deal

South Korea's Kookmin Bank sold $500 million floating-rate notes due 2017 at par to yield Libor plus 87.5 bps, a market source said.

The notes were talked at a spread in the 90 bps area.

BofA Merrill Lynch, Citigroup, Deutsche Bank, JPMorgan, Societe Generale CIB, Standard Chartered Bank and KB Investment and Securities were the bookrunners for the Rule 144A and Regulation S deal.

Towngas gives guidance

Hong Kong's Towngas set talk in the 5% area for its upcoming issue of perpetual dollar-denominated notes via HSBC, JPMorgan and Morgan Stanley in a Regulation S deal.

And Chinese welded steel pipe company Chu Kong will set out on a roadshow on Wednesday for a renminbi-denominated issue of notes, a market source said.

DBS is the sole global coordinator, lead manager and bookrunner for the Regulation S offering.

The roadshow will be held in Singapore and Hong Kong.

DeltaCredit to go on roadshow

Russia-based lender DeltaCredit will market a ruble-denominated issue of notes in an upcoming roadshow, a market source said.

Citigroup, Sberbank and Societe Generale will lead the marketing trip for the Rule 144A and Regulation S deal, set to begin on Thursday.

The roadshow will begin in London and travel to Zurich, Geneva and Boston before concluding on Jan. 28 in New York.

The notes are expected to price in the first half of the year.

Chilean corporate taps banks

Chile's Metro de Santiago has mandated BBVA and Deutsche Bank as bookrunners for an issue of up to $500 million notes due in 2024, a market source said.

The Rule 144A and Regulation S notes will be marketed during a roadshow in the United States and Chile.

The proceeds will be used to fund capital expenditures and for general corporate purposes.

The company is Chile's state-owned mass transport firm, which manages Santiago's rapid transit system.

Israel sets tenor

Israel set the tenor at 10 years for its upcoming issue of euro-denominated and benchmark-sized notes, a market source said.

Barclays, Citigroup and Goldman Sachs are the bookrunners for the Regulation S deal.

The notes are expected to price on Wednesday.

Isbank seeks issuance

Turkey's Isbank is looking to issue as much as $5 billion of bonds, a market source said.

No other details were immediately available on Tuesday.

Isbank is a lender based in Istanbul.

Colombia to issue notes

Colombia will issue dollar notes this month, according to a filing from the sovereign.

BofA Merrill Lynch and Credit Suisse are the bookrunners for the Securities and Exchange Commission-registered deal.

The notes will be callable, and the proceeds will be used for general budgetary purposes.

China South City does deal

On Monday, China South City Holdings priced $400 million 8¼% notes due 2019 at 98.999, according to a company filing.

UBS, Citigroup, HSBC, BofA Merrill Lynch, Credit Suisse, ICBC International and ICBCI Capital were the bookrunners for Regulation S deal.

The proceeds will be used to redeem all outstanding 2011 notes and for general corporate purposes.

The final book was $1.7 billion from more than 100 investors, with 89% from Asia and 11% from Europe.

Fund managers accounted for 50%, private banks 41%, banks 7% and others 2%.

Greentown China prices bonds

Also on Monday, Greentown China Holdings issued $500 million perpetual notes (B2/B+/) at par, according to a company filing.

The notes carry a 9% coupon, which then resets after the first call date to Treasuries plus 1,237.3 bps and resets again every five years.

Deutsche Bank, Goldman Sachs (Asia), UBS, Macquarie, HSBC, Standard Chartered Bank and BNP Paribas were the bookrunners for the Regulation S deal.

The final book was $3.8 billion from 137 orders, with 92% from Asia and 8% from Europe.

Banks and private banks accounted for 74%, fund managers 17% and others 9%.

CIFI prints notes

In another deal that took place on Monday, China's CIFI Holdings priced $200 million 8 7/8% notes due 2019 at 99.545, according to a company filing.

Standard Chartered Bank, Citigroup, Deutsche Bank, HSBC and Haitong International were the bookrunners for the Regulation S deal.

The issuer is a Shanghai-based developer.

The deal drew $1.1 billion in orders from 106 investors, with 77% from Asia and 23% from Europe.

Asset and fund managers picked up 58%, private banks 25%, banks 13% and corporates 4%.

Deal from Yuzhou Properties

Late on Friday, China's Yuzhou Properties Co. Ltd. priced $300 million 8 5/8% notes due 2019 at par to yield 8 5/8%, according to a company filing.

The price matched talk, set at 8 5/8%.

BOCI Asia Ltd., Citigroup Global Markets Inc., Deutsche Bank AG, Singapore Branch and HSBC were the bookrunners and lead managers.

The proceeds of the Regulation S deal will be used to repay some debt, to fund the acquisition of land for residential and commercial property development and for general corporate purposes.

The final book was about $2 billion, with 89% of the orders from Asia and 11% from Europe.

Fund managers accounted for 60% of the orders, private banks 18%, banks 10%, corporates 10% and others 2%.

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