Woori Bank, Mubadala, Vista Land issue bonds; Ukraine tension mounts; Lat-Am stays firm

By Marisa Wong

Atlanta, April 23 - South Korea's Woori Bank, Abu Dhabi's Mubadala Development Co. PJSC and Philippines-based Vista Land and Lifescapes Inc. sold notes on Wednesday as tensions in Ukraine remained high following reports that a politician was found murdered.

"Authorities have resumed anti-terror operations in the region as a result, which is likely to aggravate Russia," a London-based analyst said. "The United States has also announced that troops are to be deployed to Eastern Europe for training exercises. Again, we would not expect Russia to react well to this kind of provocation."

This, plus weak manufacturing data from China, hurt investor sentiment on Wednesday morning, she said.

"Turkey is also a little weaker this morning," she said. "We are starting to increasingly see private bank sellers."

Looking to Latin America, most bonds remained firm on Wednesday, a New York-based trader said, with Colombia-based Ecopetrol SA's notes ticking higher.

Brazil's Petrobras stayed within a tight spread range but is expected to narrow further, he said.

Corporates from Chile were in demand while Mexico-based Cemex SAB de CV's notes struggled to inch higher.

In deal-related news on Wednesday, Peru's Camposol SA and China's Far East Horizon Ltd. set talk and roadshows were planned for Mexico's Fermaca Enterprises S de RL de CV, Abu Dhabi National Energy Corp. (TAQA) and China Overseas Land & Investment Ltd.

"Another busy morning, highlighted by the return of TAQA," he said.

TAQA's secondary curve was "holding firm," he said, while Dubai Electricity and Water Authority's 2015 bond was spotted in the high-106s.

Dubai eyed

The new Dubai sukuk - 5% notes due 2029 that priced at par to yield mid-swaps plus 177.1 basis points - moved from 99.95 to par in the secondary market on Wednesday, a trader said.

Dubai Investment Bank, Emirates NBD Capital, HSBC, National Bank of Abu Dhabi and Standard Chartered Bank were the bookrunners for the Regulation S deal.

OCP trades up

Morocco-based Office Cherifien de Phosphate's (OCP) recent two-part issue of $1.55 billion notes due 2024 and 2044 received some attention on Wednesday.

"The recently issued OCP dual-tranche started to see some sellers emerge yesterday from the States," a trader said.

The deal included $1.25 billion 5 5/8% notes due 2024 that priced at 99.059 to yield 5¾%, or Treasuries plus 311.1 bps. The notes were spotted Wednesday at 100¼ bid, 100¾ offered.

The deal also included $300 million 6 7/8% notes due 2044 that priced at 93.992 to yield 7 3/8%, or Treasuries plus 392.7 bps. The notes traded Wednesday at 99¼ bid, 100¼ offered.

Barclays, JPMorgan and Morgan Stanley were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used to fund the company's expenditure program and for general corporate purposes.

Woori does deal

In its new deal, South Korea's Woori Bank priced $1 billion 4¾% notes due 2024 at 99.953 to yield 4.756%, or Treasuries plus 207.5 bps, a market source said.

Barclays, BofA Merrill Lynch, BNP Paribas, Credit Agricole, HSBC, JPMorgan and Nomura Securities were the bookrunners for the Basel III-compliant, Rule 144A and Regulation S notes.

The proceeds will be used for general corporate purposes.

Issuance from Mubadala

Abu Dhabi's Mubadala Development sold $750 million 3¼% notes due 2022 at 98.53 to yield 3.462%, or Treasuries plus 120 bps, a market source said.

BofA Merrill Lynch, Credit Agricole, Deutsche Bank, Goldman Sachs, HSBC and National Bank of Abu Dhabi were the bookrunners for the Rule 144A and Regulation S transaction.

"They have a bond maturing next month - $1.25 billion - and the new eight-year is capped at $750 million," a trader said. "I see a shortfall here. The credit has not issued for three years and is typically very well regarded, locally. A nice new deal near par with some liquidity will be more than welcome."

Vista Land prices notes

Philippines-based homebuilder Vista Land priced a $250 million issue of 7.45% notes due 2019 at 99.284 to yield 7 5/8%, a market source said.

HSBC and DBS were the bookrunners for the Regulation S deal.

The proceeds will be used to refinance existing indebtedness, partially fund capital expenditures and for general corporate purposes.

The homebuilder is based in Mandaluyong City, Philippines.

Camposol gives guidance

Peru-based fruit and vegetable grower Camposol set talk in the 101.50 area for an upcoming $75 million tap of its 2017 notes, a market source said.

Credit Suisse and Santander are the bookrunners for the Rule 144A and Regulation S deal, which is expected to price this week.

The proceeds will be used to expand infrastructure and fund capital expenditures, including investments in blueberry and shrimp plantations.

Far East Horizon sets talk

China's Far East Horizon set talk at 4¼% for its Singapore dollar-denominated issue of notes due in 3½ years, a market source said.

DBS Bank and Standard Chartered Bank are the bookrunners for the Regulation S deal, part of the company's $3 billion medium-term note program.

Far East Horizon is a financial leasing unit of Sinochem Group, which is a Hong Kong-based business conglomerate with interests in agriculture, energy, chemicals, real estate and finance.

Fermaca schedules roadshow

Mexico-based pipeline company Fermaca will set out on Thursday for a roadshow to market a $527 million issue of notes due in March 2038, a market source said.

Citigroup and Deutsche Bank are the bookrunners for the Rule 144A and Regulation S deal.

The roadshow will begin in New York and travel to London and Boston before concluding on April 30 in Los Angeles.

Marketing trip for TAQA

Abu Dhabi's TAQA will set out on Thursday for a roadshow to market a dollar-denominated and benchmark-sized issue of notes, a market source said.

BofA Merrill Lynch, Mitsubishi UFJ Securities, Societe Generale CIB, Standard Chartered Bank and RBS are the bookrunners for the Rule 144A and Regulation S deal.

The roadshow will be held in Asia, Europe and the United States.

"We can expect that potentially in the middle of next week, after their investor meetings," a trader said. "They were last in the markets in December 2012, their curve trades very well and parts are very technical."

Saudi corporate picks leads

Saudi Arabia's Dar Al-Arkan Real Estate Development has mandated Al Khair Capital, Deutsche Bank and Goldman Sachs to lead a roadshow, a market source said.

The development company will discuss its first-quarter results and future projects.

"The 2018s are closing at 98½ bid, 99 offered and the 2016s at 100.85 mid," a trader said.

China Overseas mandates banks

China Overseas Land & Investment will begin marketing a possible issue of notes on Thursday with six bookrunners, a market source said.

Citigroup, Goldman Sachs, JPMorgan, HSBC, BOC International and Deutsche Bank are the bookrunners for the road trip.

China Overseas is a Hong Kong-based construction and development company.

Kasikornbank oversubscribed

Thailand-based Kasikornbank PCL's new $350 million 3½% notes due 2019 drew more than $1 billion in orders, with 67% from Asia and 33% from Europe, a market source said.

The notes priced at 99.599 to yield 3.581%, or Treasuries plus 185 bps, via Barclays and Standard Chartered Bank in a Regulation S deal.

Fund managers picked up 38%, banks 31%, insurers 22% and private banks 9%.

Tencent draws orders

China-based Tencent Holdings Ltd.'s two-tranche issue of $2.5 billion notes due 2017 and 2019 attracted a combined order book totaling about $12.5 billion, a market source said.

The $500 million 2% notes due in three years that priced at 99.797 to yield 2.070% attracted $4.5 billion in orders.

The $2 billion 3 3/8% notes due in five years that priced at 99.895 to yield 3.398% brought in $8 billion.

Deutsche Bank, Barclays, JPMorgan, HSBC, ANZ, BofA Merrill Lynch, Bank of China, Citigroup, Credit Suisse, Goldman Sachs and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used for general corporate purposes.

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