Nan Fung, Sun Hung, Brasil Telecom sell notes in active day; Global Yatirim cancels bonds

By Christine Van Dusen

Atlanta, Feb. 6 - Brasil Telecom SA and two Chinese property development companies - Nan Fung International Holdings and Sun Hung Kai Properties (Capital Market) Ltd. - sold notes on Monday as investor sentiment was buoyed by positive global economic news but some concern arose about whether debt-saddled Greece will accept the terms of a new bailout.

"Another mixed session, all told," a trader said. "However, for a change we opened with a heavy bias, with some bids getting hit."

For bonds from the Middle East and North Africa, this meant that Monday morning was a bit weak, he said.

"In the opening hours we're seeing paper around," he said. "Mubadala's 2014s are down, and First Gulf Bank's 2017s are trading a little heavy."

The recent $400 million five-year sukuk notes from MAF Sukuk Ltd. - a unit of Dubai-based developer Majid Al-Futtaim Holding - that priced at par were seen trading Monday at 100.87 bid, 101.12 offered.

Aldar Properties' 2014s were wider by about 5 basis points, at 110.12 bid, 110.62 offered.

And Bahrain's 2020s were 11 bps wider on the month. They were quoted Monday at 95.25 bid, 95.75 offered.

"From Dubai, optically a few bonds are wider, however this whole space trades well," a trader said.

Looking to Africa, investors were nibbling on South Africa's bonds, particularly in the long end of the curve.

"Euro paper remains well supported and squeezed," he said, noting "good action on African Export-Import Bank with nibbling on the 2016s most of the day."

By the afternoon, Abu Dhabi's International Petroleum Investment Co.'s bonds were closing 5 bps to 10 bps wider.

"Although the 2015s and 2016s continue to hold very well," he said. "Clearly the Street is still short Abu Dhabi National Energy Co., as this name continues to trade well."

Nan Fung, Sun Hung price

In its new deal, China-based property developer Nan Fung International priced a $250 million add-on to its 5¼% notes due Jan. 20, 2017 at 100.38 to yield 5.161%, or Treasuries plus 440 bps, a market source said.

HSBC, JPMorgan and Goldman Sachs were the bookrunners for the Regulation S deal.

The original issue totaled $350 million and priced on Jan. 16 at 99.376 to yield Treasuries plus 460 bps.

And Sun Hung Kai Properties priced $500 million 4½% notes due Feb. 14, 2022 at 99 to yield 4.626%, or Treasuries plus 270 bps, a market source said.

HSBC was the bookrunner for the Regulation S notes.

Brasil Telecom prices bonds

Brasil Telecom - a subsidiary of Rio de Janeiro-based telecommunications company Telemar Norte Leste SA - priced $1.5 billion notes due Feb. 10, 2022 at par to yield 5¾%, a market source said.

The notes were talked in the 6% area.

Bank of America Merrill Lynch, Barclays Capital, Espirito Santo Investment Bank and HSBC were the bookrunners for the Rule 144A and Regulation S deal.

Proceeds will be used for general corporate purposes.

Minerva does deal

These new deals followed the late-Friday pricing of Brazil-based food processing company Minerva SA's $350 million issue of 12¼% notes due Feb. 10, 2022.

The notes came to the market at 97.903 to yield 12 5/8% via BTG Pactual, Goldman Sachs and Itau BBA in a Rule 144A and Regulation S transaction.

Proceeds will be used for debt refinancing.

The final book was more than $1.5 billion.

Other Chinese developers busy

In other deal-related news, China-based development conglomerate Cheung Kong Infrastructure Holdings Ltd. mandated Goldman Sachs and JPMorgan as bookrunners for a possible issue of up to $500 million fixed-rate callable perpetual securities, a market source said.

The Regulation S transaction will be launched in May, according to a company announcement.

Proceeds will be used for general corporate purposes.

And construction and development company China Overseas Land & Investment Ltd. has mandated Deutsche Bank, HSBC, ICBC International and JPMorgan for a dollar-denominated issue of notes that will be marketed on a roadshow this week, a market source said.

The marketing trip for the Regulation S deal will be held in Hong Kong and Singapore, starting Tuesday.

Global Yatirim shelves plans

Also on Monday, Turkey-based investment holding company Global Yatirim Holding canceled plans for a tap of its 11% dollar notes due June 30, 2017, a market source said.

The Rule 144A and Regulation S notes were talked at the 11% area.

Mitsubishi UFJ and UBS were the bookrunners for the deal.

And Poland's Polskie Gornictwo Naftowe i Gazownictwo SA (PGNiG) is planning a general investor call to revisit its planned issue of euro-denominated notes, first announced in 2011, a market source said.

BNP Paribas, Societe Generale and Unicredit are organizing the call.

The Warsaw-based oil and natural gas company previously announced plans to sell up to €1.2 billion of fixed-rate or floating-rate notes with maturities of up to 10 years.

Proceeds would be used for general liquidity purposes.

Ukraine taps bookrunners

Ukraine has mandated JPMorgan, Morgan Stanley and VTB for an international offering of bonds, a market source said.

No other details were immediately available on Monday.

And Brazil-based sugar concern Grupo Farias set out on a roadshow for its planned $300 million issue of seven-year notes with Banco Bradesco, Deutsche Bank and UBS.

The roadshow started Monday in New York and will travel to Boston on Tuesday and finish on Wednesday on the West Coast.

Banco Santander sets guidance

Brazil's Banco Santander (Brasil) SA set price talk for its benchmark-sized issue of dollar-denominated notes due 2017 at the Treasuries plus 415 bps area, a market source said.

Bank of America Merrill Lynch, BNP Paribas, Santander and Standard Chartered are the bookrunners for the Rule 144A and Regulation S deal.

Proceeds will be used for general corporate purposes.

Banco Santander (Brasil) is a lender based in Sao Paulo.

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