Primary market hosts Poland, PKO Bank, Fantasia, Santander Chile; Egypt outperforms

By Christine Van Dusen

Atlanta, Jan. 16 - Poland, Poland's PKO Bank Polski SA, China's Fantasia Holdings Corp. and Banco Santander Chile were among the issuers to print new issues on a Thursday that saw mixed performance for Russia's banks and a weak opening for Turkey and Russia.

"Turkey sovereign cash is 5 basis points wider on average while banks are 7 bps to 9 bps wider," a London-based analyst said.

Russia's sovereign bonds were 3 bps to 4 bps wider while banks were "a mixed bag," she said. "We've seen better buyers of VTB, VEB this morning alongside sellers of Sberbank."

Meanwhile, the tone was solid for bonds from the Middle East and North Africa, a London-based trader said.

"It appears a tentative deal has been agreed to between the United Arab Emirates and Iran over a long-standing disagreement over some islands in the Gulf," he said. "Throw in the lack of supply and some decent redemptions this year, and we're trading well, with plenty of technical bonds."

Bonds from Egypt were particular standouts on Thursday, the London trader said.

"Egyptian dollar bonds are still doing very well," he said. "The 2020 dollar notes are now 100 bps tighter on the month."

The sovereign's 2040s are about 70 bps tighter on the month, he said.

But Dubai's Jebel Ali Free Zone (Jafza) saw its 2019s take a pause on Thursday, widening about 6 bps on the week to 114.12 bid, 114.62 offered, the London trader said.

In other trading, the new issue of notes from Lithuania - €500 million 3 3/8% notes due 2024 that priced at 99.292 - traded up 30 cents on Thursday morning, a trader said.

Poland's new issue

Poland priced a $2 billion issue of 4% notes due 2024 at 99.194 to yield 4.099%, or Treasuries plus 125 bps, according to a filing from the sovereign.

Barclays, Citigroup and Goldman Sachs were the bookrunners for the Securities and Exchange Commission-registered deal.

PKO sells notes

Poland-based lender PKO Bank sold €500 million 2.324% notes due 2019 (A2/A-/) at par to yield 2.324%, or mid-swaps plus 115 bps, a market source said.

Citigroup, Santander, Societe Generale and UBS were the bookrunners for the Regulation S deal.

Powszechna Kasa Oszczednosci Bank Polski is the borrower.

Fantasia prices bonds

China-based property developer Fantasia Holdings priced a $300 million issue of 10 5/8% notes due 2019 at par to yield 10 5/8%, a market source said.

Citigroup, BofA Merrill Lynch, BNP Paribas and HSBC were the bookrunners for the Regulation S-only deal.

The proceeds will be used to refinance indebtedness, to finance development projects and for other general corporate purposes.

Santander Chile issues notes

Banco Santander Chile priced its CHF 300 million issue of 1% notes due 2017 at 99.886 to yield 1.034%, or mid-swaps plus 68 bps, a market source said.

The notes were talked at a spread in the 68 bps area.

BNP Paribas and UBS were the bookrunners for the deal.

Banco Santander Chile is a bank based in Santiago, Chile.

Gazprombank launches notes

Russia's Gazprombank OJSC launched an issue of Swiss franc notes - to be a minimum of CHF 300 million - due 2024 with a 5 1/8% coupon, a market source said.

The notes were talked at 5¼% to 5½%.

Credit Suisse, Gazprombank and UBS are the bookrunners for the deal.

The issuer is a Moscow-based lender.

Bonds soon from Braskem

Brazil's Braskem set talk in the high-6% area for its upcoming dollar-denominated issue of benchmark-sized notes due in three years, a market source said.

Bradesco BBI, Citigroup, Credit Agricole-CIB, Deutsche Bank and HSBC are the bookrunners for the Securities and Exchange Commission-registered deal.

Standard Chartered Bank is the co-manager.

Braskem is a Sao Paulo-based petrochemical company.

Banco Regional gives guidance

Paraguay's Banco Regional SAECA set initial talk in the mid-to-high-8% area for its upcoming dollar-denominated issue of five-year notes, a market source said.

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

The proceeds will be used for general corporate purposes.

The lender is based in Encarnacion, Paraguay.

Fibra Uno sets roadshow

Mexico's Fibra Uno has mandated BBVA, Credit Suisse, Deutsche Bank and Santander to lead a roadshow for a dollar-denominated issue of notes, a market source said.

The roadshow will begin Friday and take place in Latin America, the United States and Europe.

A Rule 144A and Regulation S transaction is expected to follow.

Fibra Uno acquires, develops and operates commercial real estate in Mexico.

Marketing trip for Israel

Israel has mandated Barclays, Citigroup and Goldman Sachs as bookrunners for a euro-denominated issue of benchmark-sized notes that will be marketed during a roadshow, a market source said.

The roadshow will begin on Jan. 20 and take place in the United Kingdom and Europe.

Korea Gas roadshow scheduled

Korea Gas Corp. has mandated BofA Merrill Lynch, Barclays, Goldman Sachs, JPMorgan and UBS to lead a roadshow for a possible issue of notes, a market source said.

The roadshow will take place the week of Jan. 20.

Korea Gas is a natural gas company based in Seongnam, South Korea.

Pemex does deal

Late on Wednesday, Mexico-based petrochemical company Petroleos Mexicanos SAB de CV (Pemex) priced a three-part issue of $4 billion issue of notes due 2019, 2024 and 2045, a market source said.

The deal included $500 million 3 1/8% notes due 2019 that priced at par to yield 3 1/8%, or Treasuries plus 145 bps.

The $500 million tap of the company's 4 7/8% notes due 2024 priced at 99.453 to yield 205 bps over Treasuries.

And the $3 billion 6 3/8% notes due 2045 priced at 99.252 to yield Treasuries plus 260 bps.

BofA Merrill Lynch, Deutsche Bank and Goldman Sachs were the bookrunners for the Rule 144A and Regulation S deal.

Minera issues bonds

Peru's Compania Minera Ares SAC sold $350 million 7¾% notes due 2021 at 99.337 to yield 7 7/8%, a market source said.

The notes priced tighter than talk, set in the 8½% area.

BofA Merrill Lynch, Goldman Sachs and BBVA were the bookrunners for the Rule 144A and Regulation S deal. Corpbanca and Scotiabank were the co-managers.

The proceeds will be used to refinance debt and for general corporate purposes.

The notes are guaranteed by Hochschild Mining plc and certain subsidiaries.

The issuer is a Peruvian mining company.

Bonds from Oro Negro

Mexico's Oro Negro Drilling Pte. Ltd. (Singapore) sold $725 million 7½% notes due 2019 at par to yield 7½%, a market source said.

The notes priced at the tight end of talk, set at 7½% to 8%.

Pareto Securities was the bookrunner for the deal.

The proceeds will be used to refinance all existing bonds in the issuer group and for general corporate purposes.

The issuer is wholly owned by Integradora de Servicios Petroleos Oro Negro SAPI de CV, a developer and promoter of oil projects in Mexico.

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