Emerging markets: Tencent prices $4.15 billion in four tranches; CK Hutchison, CCB price

By Rebecca Melvin

Concord, N.H., April 16 – After a quiet start, Asia issuers dominated the emerging markets bond primary market late this past week with several large and multi-tranche deals serving as highlights on Friday. The Central & Eastern Europe region was also a feature this week with Slovakia’s Tatra Banka AS joining the government of Georgia in the EM bond market.

On Friday, Tencent Holdings Ltd.’s $4.15 billion four-tranche deal made headlines, as did a $2 billion deal of senior notes in three tranches for Hong Kong’s CK Hutchison Holdings Ltd.

Tencent, an investment holding company based in Shenzhen, China, priced $500 million of 2.88% notes due April 22, 2031 at 99.991, $900 million of 3.68% notes due April 22, 2041 at 99.972, $1.75 billion of 3.84% notes due April 22, 2051 at 99.965 and $1 billion of 3.94% notes due April 22, 2061 at 99.96.

The proceeds will be used for general corporate purposes.

Joint global coordinators and managers of the Rule 144A and Regulation S notes are Morgan Stanley, BofA Securities, Goldman Sachs (Asia) LLC and HSBC. They are joined by Bank of China (Hong Kong), Bocom International, China International Capital Corp., CLSA, Credit Suisse, DBS Bank Ltd., Deutsche Bank, ICBC (Asia), JPMorgan, Mizuho Securities, Standard Chartered Bank and UBS as managers.

The issuance was made under Tencent’s global medium-term note program, which was amended on April 13. After the issuance settles on April 22, the company will have $22.15 billion principal amount outstanding of notes under the program.

CK Hutchison, via subsidiary CK Hutchison International (21) Ltd., priced $500 million of 1½%, five-year notes; $850 million of 2½% 10-year notes and $650 million of 3 1/8% 20-year notes.

The offerings were made under Regulation S and Rule 144A via Citigroup Global markets Inc., DBS Bank Ltd., Deutsche Bank AG, Hong Kong Branch, Goldman Sachs (Asia) LLC, Merrill Lynch (Asia Pacific) Ltd., Scotia Capital (USA) Inc. and SMBC Nikko Capital Markets Ltd. as lead managers and bookrunners.

The issue date was April 15.

The multinational conglomerate is based in Hong Kong with businesses including port operations and energy.

Meanwhile, Beijing’s China Construction Bank Corp. Ltd. Luxembourg Branch priced €800 million of 0% senior green bonds due 2024, according to a market source on Friday.

The Regulation S notes priced at 99.871 for a yield of 0.043%, or 76 basis points spread over Bunds.

The deal represented a drawdown of the bank’s $15 billion MTN program and priced in accordance with its green, social, sustainability and sustainability linked bond framework.

The bank is also planning tranches denominated in dollars and renminbi under the MTN program.

Kuala Lumpur, Malaysia-based investment holding and management company Genting Malaysia Bhd.’s GENM Capital Labuan Ltd. sold $1 billion of 3.882% senior notes due 2031 on Monday.

The notes can be redeemed at par plus a make-whole premium before Jan. 19, 2031, either all or a portion of the notes. After that date, the notes can be redeemed at par.

Proceeds will be used by the company or its subsidiaries to refinance existing borrowings and for capital (including investment) and working capital requirements.

Citigroup Global Markets Singapore Pte. Ltd., J.P. Morgan (S.E.A.) Ltd., CIMB Bank Bhd., Labuan Offshore Branch and DBS Bank Ltd. are the joint global coordinators, joint bookrunners and joint lead managers.

Joining as joint bookrunner and joint lead manager was BNP Paribas.

For the Philippines, Petron Corp. sold $550 million senior perpetual capital securities at par. They start with a 5.95% initial distribution rate, which resets to Treasuries plus 250 bps on April 19, 2026 and every fifth anniversary thereafter.

DBS Bank Ltd., Hongkong and Shanghai Banking Corp. Ltd., MUFG Securities Asia Ltd., SMBC Nikko Capital Markets Ltd., Standard Chartered Bank and UBS AG Singapore Branch are the joint lead managers and joint bookrunners for the Regulation S offering. HSBC is also global coordinator.

BDO Capital & Investment Corp., China Bank Capital Corp. and PNB Capital and Investment Corp. will act as domestic lead managers.

Proceeds will be used to repay debt and for general corporate purposes.

Petron is an oil company controlled by conglomerate San Miguel Corp. Both companies are based in Mandaluyong City, Philippines.

CEE issuers price

Georgia, acting through the Ministry of Finance, priced $500 million of five-year senior notes (Ba2) at 99.422, according to a regulatory notice on Friday.

J.P. Morgan Securities plc, Goldman Sachs International, ICBC, Galt & Taggart and TBC Capital were the managers of the Rule 144A and Regulation S deal.

The notes will be listed on the London Stock Exchange.

And Tatra Banka priced on Friday €300 million ½% senior preferred green notes due in seven years at 99.588 to yield 0.57%, or a spread over mid-swaps of 80 bps, according to a market source.

The pricing was tighter than talk for a yield of mid-swaps plus 95 bps to 100 bps.

The notes may be redeemed on April 23, 2027 at par. There is a coupon reset if the notes are not redeemed at 80 bps over three-month Euribor.

The Regulation S notes were sold via BNP Paribas, LBBW and Raiffeisen Bank International as bookrunners.

The proceeds will be used to finance or refinance new or existing eligible loans providing environmental benefits.

The commercial bank is based in Bratislava, Slovakia.

Upcoming deals

Looking ahead, Republic of Srpska is offering euro-denominated five-year notes via three bookrunners, according to a preliminary circular.

The entity of Bosnia and Herzegovina has mandated IMI – Intesa Sanpaolo, Societe Generale CIB and UniCredit as joint lead managers of the Rule 144A and Regulation S deal.

The bookrunners are expected to arrange a global investor call on Wednesday along with a series of fixed-income investor calls, with pricing of notes to follow subject to market conditions.

The proceeds of the notes will be used to finance the sovereign’s budget deficit, which will include the allocation of funds to a Compensation Fund to implement measures to mitigate the effects of the Covid-19 pandemic.

Also on tap for the Middle East and Africa, Dubai Islamic Bank PJSC was planning to price a $500 million offering of fixed-rate perpetual securities. DIB Tier 1 Sukuk (5) Ltd. will be the issuer.

The securities will be non-callable for six years.

Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC and Standard Chartered Bank are the managers.

The bank is based in Dubai, United Arab Emirates.

© 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.