Global holidays don't slow EM trading; Batelco moves up; Creative, Gayosso cancel notes

By Christine Van Dusen

Atlanta, May 1 - Though Wednesday was a holiday in much of the world, trading was surprisingly busy for emerging markets assets, with activity noted for bonds from Abu Dhabi Commercial Bank, Abu Dhabi National Energy Co. (TAQA) and Brazil's Braskem.

The Markit iTraxx SovX CEEME ex-EU index spread on Wednesday widened 1 basis point to Treasuries plus 187 bps. The corporate index - seen Tuesday at 230 bps over Treasuries - tightened 2 bps on Wednesday.

"I was expecting a fairly quiet day," a London-based trader said. "However, it was fairly active."

The new notes from Bahrain Telecommunications Co. BSC (Batelco) - $650 million 4¼% notes due 2020 that priced at 99.45 - traded up on Wednesday at 1001/2, a trader said.

BNP Paribas and Citigroup were the bookrunners for the Regulation S-only deal.

"Bahrain, as a credit, has been trading very well of late, with the exception of BBK, which trades heavy and is 10 bps wider on the month," he said.

Some small trading was noted for Sharjah Islamic Bank's 2018s on Wednesday.

"This bond refuses to get through par and traded last at 99.85," a trader said. "No technical squeeze on this one, like there was on the 2016s."

Credit Bank of Moscow's bonds opened Wednesday as much as 5 bps tighter, and Alliance Oil also traded better, a London-based analyst said.

In other news, Chile's Empresas CMPC SA was on a roadshow, and Ukraine's Creative Group and Mexico's Grupo Gayosso SA de CV canceled plans for notes.

Meanwhile, China's Cnooc Ltd. was looking to issue dollar-denominated notes due in 2016, 2018, 2023 and 2043, and several other issuers - Rolta India Ltd., Indonesia's PT Bhakti Investama Tbk and Turkey's Turkiye Sise ve Cam Fabrikalari AS (Sisecam) - mandated bookrunners.

DPWorld, TAQA favored

Dubai-based DPWorld's 2017s and Dubai Electricity and Water Authority's 2016s received some support on Wednesday.

"DPWorld last printed at 112¾ and DEWA at 112 7/8," the London trader said. "DEWA's 2015 is going to drag the DEWA 2016s tighter, and the latter is only $500 million."

Abu Dhabi National Energy Co. (TAQA) has been "trading like a rock, of late," a trader said, particularly in light of being placed on positive watch by Standard & Poor's, which also affirmed the company's rating.

And Emirates' 2023s and 2025s lagged on Wednesday.

"However, we have seen some nibbling in the past 36 hours," he said.

Qatar, Kipco bonds in focus

Investors on Wednesday seemed happy to let go of some paper from Qatar, particularly the sovereign's 2020s and 2022s, the London trader said.

"Qtel International's 2025s, 2021s and 2019s feel stable, and the short-dated Qtels are not the ones to short, as there are very little loose bonds around," he said.

More interest was seen for Kuwait-based Kipco's 2016s and 2020s. And two-way activity was reported for Abu Dhabi Commercial Bank's 2023s.

"The latter is trading at 105," he said. "An impressive run. This bond has had to trade near z-spread plus 215 bps for a bullet sub."

Slovenia trades down

The secondary market also saw Slovenia's 2022 notes move down 1 point on Wednesday after the sovereign postponed its planned issue of dollar-denominated notes due in 2018 and 2023.

Moody's Investors Service on Tuesday downgraded Slovenia's credit rating to junk.

The sovereign's 2022s were trading between 97¾ and 98¼ on Wednesday, a trader said.

BNP Paribas, Deutsche Bank and JPMorgan were the bookrunners for the Rule 144A and Regulation S deal.

The deal was expected to include dollar notes due in 2018 that were talked at a yield in the 5% area and dollar notes due 2023 that were talked in the 6 1/8% area.

The proceeds from the deal were to be used to repay maturing debt, for budget financing and for the recapitalization of the country's banking sector.

Lat-Am sees rally

Looking to Latin America, corporate bonds have been rallying this week, a New York-based trader said.

"Some high-grade credits are trading higher because they are squeezed," he said. "Others, because dealers need inventory to replace what they are losing to accounts and they don't want to miss what looks like more upside to come."

Brazil-based Braskem has been a particular standout so far this week on the news that taxes on the petrochemical industry will be reduced.

"All spread-based credits were a little tighter as well," the trader said.

Creative, Gayosso shelve plans

Ukraine-based agro-industrial company Creative Group has postponed its plans for a dollar-denominated issue of notes due in 2018 due to market conditions, a market source said.

The notes were talked in the 10¾% area.

BofA Merrill Lynch, Citigroup, UniCredit and VTB Capital were the bookrunners for the Rule 144A and Regulation S deal.

And Mexico-based funeral and cremation services company Grupo Gayosso is shelving its plans for a seven-year issue of dollar-denominated notes via JPMorgan.

The Rule 144A and Regulation notes were talked at a yield in the 8¾% area.

The proceeds were to be used for the prepayment of debt and for general corporate purposes.

Rolta, Investama pick banks

Mumbai-based Rolta India has mandated Barclays, Citigroup, DBS and Deutsche Bank for a roadshow starting Thursday, a market source said.

A Rule 144A and Regulation S issue of dollar-denominated notes is expected to follow.

And Indonesian investment company Bhakti Investama has mandated Deutsche Bank as the bookrunner for a dollar-denominated issue of five-year notes.

The Rule 144A and Regulation S notes will be issued by subsidiary Ottowa Holdings Pte. Ltd.

CMPC, Sisecam on roadshows

Chile-based pulp and paper company Empresas CMPC is on a roadshow with Deutsche Bank and JPMorgan, a market source said.

The marketing trip began on Wednesday and will be held in London and the United States.

And Turkey-based industrial group Sisecam has mandated Citigroup as the bookrunner for a planned issue of up to $500 million of notes.

The Rule 144A and Regulation S deal is being marketed on a roadshow.

Cnooc on deck

China-based oil and gas exploration and production company Cnooc is looking to issue dollar-denominated notes due in 2016, 2018, 2023 and 2043, according to a company filing.

Bank of China, BofA Merrill Lynch, CICC HK Securities, Citigroup, Credit Suisse, Goldman Sachs (Asia), JPMorgan and UBS are the bookrunners for the Securities and Exchange Commission-registered deal.

The proceeds will be used to repay part of the outstanding borrowings from wholly owned subsidiary Cnooc Canada Holding ULC.

Aralco, Trikomsel price notes

On Tuesday, Brazil-based ethanol and sugar producer Aralco Finance SA priced a $250 million issue of 10 1/8% notes due 2020 at 99.386 to yield 10¼%, a market source said.

Banco Votorantim, Credit Suisse, HSBC, Itau BBA and Banco Pine were the bookrunners for the Rule 144A and Regulation S deal.

And Indonesia-based mobile phone operator PT Trikomsel Oke Tbk sold S$115 million 5¼% notes due 2016 at par to yield 5¼% with ANZ, JPMorgan and Standard Chartered Bank in a Regulation S deal.

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