CorpBanca, Lai Sun, others do deals on 'impressive day' for EM; Turkish banks see sellers

By Christine Van Dusen

Atlanta, Jan. 10 - In a flurry of new issuance on Thursday, deals were seen from Chile-based CorpBanca SA, China's Lai Sun International Finance 2012 Ltd., Philippines-based International Container Terminal Services Inc., Power Grid Corp. of India Ltd., Colombia's Empresa de Telecom de Bogota (ETB) and China's Champion Real Estate Investment Trust.

"Markets this morning are being supported by strong Chinese data for December," a London-based analyst said, pointing to the year-over-year 14.1% increase in exports.

The Markit iTraxx SovX index spread started the session wider by 1 basis point while the corporate index moved out 2 bps.

"Another impressive day for this market. Fresh highs were reached on a bevy of bonds and offers are being picked off, one by one," a London-based trader said. "Very active day, flow-wise, but we're expecting limited action tomorrow because many locals will be out."

Some buying was reported for Russian corporate bonds, particularly those from Sberbank, Gazprom and VTB, the analyst said.

"Russia sovereign paper continues to trade heavily, with supply in the 2042s and 2030s," she said.

Sellers were seen for front-end paper from Turkey's Yapi ve Kredi Bankasi AS, Finans Bank AS (Finansbank) and Turkiye Is Bankasi AS (Isbank). Buyers emerged for Yapi Kredi's subordinated notes due in 2022 and Turkiye Garanti Bankasi's (GarantiBank) 2022s.

Meanwhile, several issuers took steps toward doing new deals, including China's Agile Property Holdings Ltd., Hong Kong Broadband Network Ltd., Russia's Gazprombank OJSC, the Republic of Paraguay, Chile's Automotores Gildemeister SA and Peru-focused Corporacion Pesquera Inca SAC (Copeinca).

Garanti news 'negligible'

Taking a closer look at GarantiBank, the company's recent announcement that its net interest margin would remain flat hurt shares but had "negligible effect on the bonds' spreads," the analyst said.

"The group guided to a more aggressive loan growth of 18%, with term loans increasing by 20% in 2013," she said. "We do not see this new guidance as surprising, given the recent macroeconomic data, and we remain constructive on the credit."

Give the company's solid solvency base, liquidity and cost-management, the bond curve is fairly priced, she said, offering little premium versus its peers.

Ukraine 2017s outperform

While most sovereign bonds Ukraine were somewhat sluggish, the sovereign's 2017s have been outperforming, said Svitlana Rusakova of Dragon Capital.

The notes were spotted at 103¼ bid, 104¼ offered.

"Makes sense, as the issue is fairly liquid and still 160 bps above Ukraine's 9¼% 2017s," she said.

On the corporate side, Metinvest's 2015s and 2018s moved up in trading. The 2015s were seen at 105½ bid, 106½ offered while the 2018s traded at par bid, 101 offered.

"Demand for City of Kiev pushed the bonds a half-point higher," she said.

Demand for higher-beta

The tone was solid on Thursday morning for credits from the Middle East and North Africa, a London-based trader said.

"Very solid Street demand on the higher-beta names," he said. "Nonetheless, Dubai Electricity and Water Authority, Kipco, Bahrain and the Government of Dubai - anything Dubai - continue to perform very well."

Dubai's 2020s were seen at 128 bid while DEWA's 2020s traded at 125. In June, the latter bonds were quoted at 105.

On the offer side overall, liquidity was somewhat weak, he said.

Qtel climbs

The $1 billion issue of 3¼% notes due 2023 that Qatar Telecom QSC (Qtel) priced through subsidiary Qtel International Finance Ltd. in December was trading up on Thursday.

The notes were seen early in the session at 100.10 bid, 100.35 offered after pricing at 98.721. Later in the morning the notes dipped slightly to par bid, 100¼ offered.

Barclays, HSBC, Mitsubishi UFJ, Mizuho Securities, Morgan Stanley and QNB Capital were the bookrunners for the Rule 144A and Regulation S transaction.

TAQA notes trade up

Another issue from December - the $2 billion of five- and 10-year notes from Abu Dhabi National Energy Co. (TAQA) - received some attention in trading on Thursday.

The 2018 notes that priced at 99.483 were quoted at 101 bid, 101½ offered and later traded at 101.12 bid, 101.62 offered.

The 2023 notes that priced at 99.404 were seen Thursday at 102½ bid, 103¼ offered before moving to 102.37 bid, 102.87 offered.

BNP Paribas, Citigroup, HSBC and Standard Chartered were the bookrunners for the Rule 144A and Regulation S deal.

IPIC in focus

Abu Dhabi-based International Petroleum Investment Co.'s 1¾% notes due 2015 - which priced in December at 99.762 - traded early Thursday at 100¼ bid, 100¾ offered.

The company's 2018s that priced at 99.583 were seen at 102.81 bid, 103.81 offered, a trader said.

And the 2023s that came to the market at 99.021 were quoted Thursday at 104.87 bid, 105.62 offered.

BNP Paribas, JPMorgan, National Bank of Abu Dhabi, Natixis, RBS and Unicredit were the bookrunners for the Regulation S-only deal.

"With no supply announced this week from the region, and everyone looking for a return this year, the majority realize they are not going to achieve their targets by hoovering up lower-beta Abu Dhabi and Qatar paper," a trader said.

CorpBanca sells notes

In its new deal, Chile-based financial institution CorpBanca priced an $800 million of 3 1/8% notes due Jan. 15, 2018 at 99.473 to yield 3.24%, or Treasuries plus 245 bps, a market source said.

Citigroup and JPMorgan were bookrunners for the Securities and Exchange Commission-registered deal. CorpBanca Corredores de Bolsa SA is co-manager.

The proceeds will be used for general corporate purposes, primarily to fund lending activities.

Also on Thursday, India's Power Grid sold $500 million 3 7/8% notes due Jan. 17, 2023 at 98.954 to yield 4.003%, or Treasuries plus 210 bps, a market source said.

The notes priced at the tight end of talk, set at the Treasuries plus 215 bps area.

Barclays, RBS and Standard Chartered Bank were the bookrunners for the Regulation S deal.

Lai Sun prices bonds

China-based Lai Sun priced a $350 million issue of 5.7% notes due Jan. 18, 2018 at par to yield 5.7%, a market source said.

The notes were talked at a yield in the 5¾% area.

BNP Paribas, HSBC and Standard Chartered Bank were the bookrunners for the Regulation S deal.

The notes are guaranteed by Lai Sun Development Co. Ltd., a Hong Kong-based real estate company.

ETB does peso deal

Colombia-based telecommunications company ETB priced 530.18 billion Colombian peso notes due Jan. 17, 2023 with a 7% coupon at par to yield 7%, a market source said.

The notes were talked at a yield in the low- to mid-7% area.

Deutsche Bank Securities and Goldman Sachs were the bookrunners for the Rule 144A and Regulation S deal.

The notes are equivalent to $299.9 million.

In another new deal, China's Champion REIT priced a $400 million issue of 3¾% notes due Jan. 17, 2023 at 99.185 to yield 3.849%, or Treasuries plus 195 bps, a market source said.

The notes were talked at the Treasuries plus 200 bps area.

Citigroup, HSBC and UBS were the bookrunners for the Regulation S deal.

And Philippines-based port operator International Container subsidiary ICTSI Treasury BV priced a $300 million issue of 4 5/8% notes due Jan. 16, 2023 at 99.014 to yield 4 ¾%, a market source said.

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

The notes are part of a medium-term note program of up to $750 million.

"The primary market is picking up pace," the analyst said.

Agile sets talk

In other deal-related news, China-based land development company Agile Property Holdings set initial price talk in the high-8% area for a benchmark-sized issue of dollar-denominated perpetual notes, a market source said.

Hongkong and Shanghai Banking Corp. Ltd., UBS AG, Hong Kong Branch and Morgan Stanley & Co. International plc, are the lead managers and joint bookrunners. ICBC International Securities Ltd. is a joint lead manager.

The Regulation S deal includes a step-up of 300 bps in the event of a change of control.

Proceeds will be used for the purchase of new land sites, refinancing and general working capital purposes.

Guidance given

Hong Kong Broadband gave guidance in the 5½% area for a planned dollar-denominated issue of benchmark-sized notes due in five years, a market source said.

JPMorgan, Standard Chartered and UBS are the bookrunners for the Regulation S deal.

The notes will be issued by Metropolitan Light International.

And Russia-based lender Gazprombank has mandated Barclays, Citigroup and GPB Financial Services Ltd. for a roadshow to market a eurobond offering, a market source said.

The roadshow for the Regulation S transaction will begin on Jan. 14.

African Development deal ahead

Tunisia's African Development Bank is expected to price its planned issue of $1 billion of notes during the first quarter of this year, a market source said.

No other details were immediately available on Thursday.

And Paraguay has mandated Bank of America Merrill Lynch and Citigroup for a roadshow starting Jan. 15, a market source said.

The marketing trip will start out in New York.

Market sources also were whispering about a possible issue of notes from Turkey's Sabiha Gokcen Airport.

Talk from Gildemeister

Chile-based auto distributor Gildemeister set talk for a $300 million issue of senior notes due in 2023 at 6 7/8% to 7%, a market source said.

JPMorgan is the bookrunner for the Rule 144A and Regulation S deal.

And Peru-focused Copeinca set price talk at the 106.5 area for a $75 million reopening of its existing 9% notes due Feb. 10, 2017.

BTG Pactual and Santander are the bookrunners for the Rule 144A and Regulation S deal.

Proceeds will be used to refinance debt, for capital expenditures and for general corporate purposes.

Copeinca is a producer of fishmeal and fish oil, harvested off the coast of Peru.

Hopson deal oversubscribed

The final book for China-based real estate company Hopson Development Holdings Ltd.'s $300 million issue of 9 7/8% notes due 2018 was $6 billion from 175 accounts, a market source said.

The notes priced Wednesday at par to yield 9 7/8% via UBS and ICBC Asia in a Regulation S deal.

About 94% of the orders came from Asia and 6% from Europe. Funds accounted for 48%, private banks 25%, banks 23% and corporates 4%.

Proceeds will be used to refinance existing debt, to finance construction or improvement of projects and for general corporate purposes.

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