Novatek sells RUB 14 billion notes; Tinkoff Credit, Donetsky Metalurgichesky Zavod on deck

By Aleesia Forni

Columbus, Ohio, Feb. 13 - Russia's OAO Novatek hit Wednesday's primary market, as emerging markets bonds saw an active trading day in the secondary, sources said.

The gas producer sold RUB 14 billion of 7¾% four-year notes at par during the session.

Also in that region, Russia's Tinkoff Credit and Ukraine's Donetsky Metalurgichesky Zavod joined the deal pipeline.

Tinkoff Credit set talk for a tap of its existing notes due 2018, while Donetsky Metalurhichesky Zavod is planning a dollar-denominated deal.

The secondary market saw an active morning, sources said, with spreads moving tighter on the day.

Russian paper was "tighter across the board" during the session, with OJSC VimpelCom's recent deal trading 8 basis points better.

In other trading, bank paper from First Gulf Bank PJSC and Qatar National Bank SAQ were among the session's most popular names.

Wednesday also saw Emirates Airline's notes trade wider compared to levels seen earlier in the week.

Novatek sells notes

Novatek priced a RUB 14 billion issue of 7¾% four-year notes at par, according to a market source.

The notes priced on top of talk.

Barclays, Gazprombank, Goldman Sachs and Sberbank were bookrunners for the Rule 144A and Regulation S deal.

The company previously held a roadshow in London and New York.

Novatek is an independent gas producer based in Tarko-Sale, Russia.

Tinkoff eyes deal

Russia's Tinkoff Credit has set talk for an add-on to its existing 14% notes due 2018 at the 106 area, a market source said.

The notes are expected to price during the Feb. 11 week.

The Moscow-based credit card lending institution priced the original $125 million issue at par on Nov. 29.

Meanwhile, Ukraine's Donetsky Metalurgichesky Zavod is also eyeing a trip to the primary market.

The company plans to price up to $500 million of dollar-denominated notes, according to a source.

The steel products provider is based in Donetsk, Ukraine.

Russian spreads firm

Russian bond spreads were seen "tighter across the board," a London-based analyst said on Wednesday, including VimpelCom's recent deal.

"The new [VimpelCom] 23s are 8 bps tighter since yesterday morning as supply starts to clear," the source said.

The Amsterdam-based telecommunications services provider priced the $1 billion of 5.95% notes due 2023 at par on Feb. 6.

The sale also included $600 million of 5.2% notes due 2019 and RUB 12 billion of 9% notes due 2018.

The analyst added that Russian quasi-sovereign names were trading 2 bps to 3 bps better on the day.

Emirates notes widen

The 4½% notes due 2025 from Dubai's Emirates Airline were seen "move back to par" on Wednesday, a London-based source said.

The notes were quoted on Monday at 99.37 bid, 99.87 offered.

The airline priced the issue at 99.941 on Jan. 31.

Christine Van Dusen contributed to this review.

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