Cnooc, China General Nuclear Power, Sabic come to primary as market tone improves

By Aleesia Forni

Virginia Beach, Sept. 26 - The tone to emerging markets on Thursday was slightly more positive compared to recent sessions, as China National Offshore Oil Corp. (Cnooc), Brazil's Caixa Economica Federal and Chile's Embotelladora Andina SA sold bonds during the day.

Cnooc came to market with $1.9 billion equivalent of notes in dollar and euro tranches on Thursday.

The company priced $1.3 billion of 4½% notes and €500 million of 2¾% notes, both selling 25 basis points tighter than talk.

In another new deal from that region, China General Nuclear Power Corp. sold $600 million of 3½% notes at Treasuries plus 220 bps.

Also on Thursday, Saudi Basic Industries Corp. (Sabic) issued $1 billion of 2 5/8% notes with a five-year tenor at Treasuries plus 130 bps.

In Latin American bond news, Brazil's Caixa Economica and Chile's Embotelladora Andina each sold new issues during the day's activity.

Caixa Economica priced $1.25 billion of five-year notes on Thursday, while Embotelladora Andina issued $575 million of notes due 2023.

Cnooc prices tight

China's Cnooc sold a $1.9 billion equivalent issue of notes in dollar- and euro-denominated tranches (Aa3/A-/) on Thursday, according to a market source.

There was $1.3 billion of 4½% notes due 2023 sold at par with a spread of Treasuries plus 185 bps.

A €500 million issue of 2¾% notes due 2020 was priced with a spread of mid-swaps plus 115 bps.

Both tranches sold 25 bps tighter than talk.

Bank of China, JPMorgan, UBS and Goldman Sachs are the bookrunners for the Rule 144A and Regulation S offering.

Cnooc is a Hong Kong-based oil and gas exploration and production company.

Caixa sells $1.25 billion

The session also saw Brazil's Caixa Economica Federal sell $1.25 billion of senior notes on Thursday with a spread of Treasuries plus 325 bps, according to a market source.

The notes (Baa2/BBB/) were sold under Rule 144A and Regulation S.

Deutsche Bank Securities, Bradesco, Banco do Brasil, BofA Merrill Lynch, BTG Pactual and HSBC Securities were the joint bookrunners.

Caixa Economica Federal is a Brasilia, Brazil-based lender.

Sabic five-years

Saudi Arabia's Sabic priced $1 billion 2 5/8% five-year notes (//A+) at Treasuries plus 130 bps on Thursday, according to a market source.

Citigroup, HSBC Securities, Mizuho Securities and RBS Securities Inc. are the bookrunners for the Regulation S deal.

The company previously held a roadshow from Sept. 22 to Sept. 25 in Europe, the Middle East and Asia.

Sabic is a Riyadh-based manufacturer of chemicals, fertilizers, plastics and metals.

China General new issue

Another new issue on Thursday came from China General Nuclear Power, which priced a $600 million issue of 3½% five-year notes with a spread of Treasuries plus 220 bps, according to an informed source.

Pricing was 20 bps tighter than talk, which was Treasuries plus 240 bps.

The notes priced at 99.352 to yield 3.643%.

The nuclear power plant company is based in Shenzhen, China.

Embotellador 10-years

Embotelladora Andina sold $575 million of 5% notes due 2023 with a spread of Treasuries plus 237.5 bps on Thursday, according to an informed source.

The notes sold at 99.805 to yield 5.025%.

JPMorgan, Itau BBA and Santander are the bookrunners for the Rule 144A and Regulation S deal.

The issuer is a Santiago-based bottler of soft drinks.

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