Buyers seen for Turkish bonds; Dubai, MAF outperform; Fresnillo, Poland advance deals

By Christine Van Dusen

Atlanta, Nov. 7 - Emerging markets assets put in a quieter session on Thursday, with some buying of Turkish bonds, amid tighter spreads.

"Turkey sovereign cash is marginally tighter," a London-based analyst said.

The Markit iTraxx SovX CEEME ex-EU index spread on Thursday opened at 233 basis points over Treasuries, tighter by 4 bps. The corporate index, seen Wednesday at 260 bps over Treasuries, moved in 2 bps to a spread of 258 bps over Treasuries.

"Government bonds are closing out well-bid following the European Central Bank decision to cut rates," a London-based trader said. "But generally, recent deals still feel like there is paper around and not matching the move in rates."

Flows were moderate but balanced on Thursday, he said.

One outperformer from the region was Dubai-based Majid Al Futtaim Holding LLC's (MAF) perpetuals, which closed up more than a point from the intraweek low touched on Tuesday.

And Dubai's 2017 sterling notes were quoted at 103 bid, 103¾ offered on Thursday, 55 bps better on the month.

"Abu Dhabi, Saudi Arabia and Qatar lower-beta names are fairly neutral," he said. "I think this market will tighten with a move to 2.65% or 2.70% on Treasuries and widen if we move to 2.55% or 2.50%."

In other trading from the region, the new issue of notes from Abu Dhabi's First Gulf Bank PJSC - $500 million 3¼% notes due 2019 that priced at 99.274 to yield 3.405% - opened on Thursday at 99 bid, 99.20 offered, a trader said.

BofA Merrill Lynch, Citigroup, Deutsche Bank, HSBC Holdings and First Gulf Bank were the bookrunners for the Regulation S-only deal.

The notes closed on Thursday at 99.14 bid, 99.29 offered, he said.

GTB ticks down

Nigeria-based Guaranty Trust Bank plc's new issue of $400 million 6% notes due 2018 that priced at 99.469 to yield 6 1/8% closed Thursday at 98 7/8 bid, 99 3/8 offered, a trader said.

JPMorgan and Morgan Stanley were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used for general corporate purposes.

LatAm in focus

From Latin America, spreads widened on many of the price-based credits, a New York-based trader said.

"Choppy price action again most of the day, as has become the usual course intraday, as some bonds grind higher while others move left," he said.

Brazil-based Vale SA gave back some of its recent gains while bank paper from Colombia improved, then fell back down by the close.

"We saw across-the-board selling of a number of credits," he said. "Mexican banks were quiet and remain subdued."

Banks from Peru, meanwhile, have "leveled off," he said.

Vneshprombank launches notes

Russian Foreign Economic Industrial Bank (Vneshprombank) launched its $200 million issue of three-year notes at 9%, a market source said.

The notes were talked in the 9% area.

Otkritie Bank and Raiffeisen Bank International are the bookrunners for the Regulation S deal, which is expected to price on Thursday.

The notes will be issued by VPB Funding.

The notes include a change-of-control put in the event of a ratings downgrade.

Dalian Wanda sets talk

China's Dalian Wanda Commercial Properties Co. Ltd. set final guidance at Treasuries plus 325 bps for its benchmark-sized and dollar-denominated issue of notes due in five years, a market source said.

Barclays, BofA Merrill Lynch, Goldman Sachs, HSBC and UBS are the bookrunners for the Regulation S deal.

The company is a real estate and hospitality conglomerate based in Dalian, China.

Fresnillo sets talk

Mexico-based Fresnillo plc set talk in the Treasuries plus 325 bps area for its upcoming benchmark-sized issue of dollar-denominated notes due in 10 years (expected ratings: Baa2/BBB/), a market source said.

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

The proceeds will be used for funding current investment and development plans, for future growth opportunities and for general corporate purposes.

The issuer is a precious metals mining company headquartered in Mexico City.

Roadshows for Russian issuers

Russia's Moscow Domodedovo Airport will set out on Friday on a roadshow to market a dollar-denominated issue of notes with ING, Raiffeisen Bank and UBS for a Regulation S deal.

The roadshow will be held in the United Kingdom and Continental Europe.

Russia's OJSC Alfa Bank will embark on a roadshow starting Nov. 14 for a Swiss franc-denominated issue of notes with UBS.

And Vostochny Express Bank is planning a roadshow for a dollar-denominated issue of notes, a market source said.

More deals ahead

JSC National Co. Kazakhstan Engineering will set out on Nov. 11 for a roadshow to market a dollar-denominated issue of notes, a market source said.

Halyk Finance, UBS and VTB Capital are the joint lead managers and bookrunners for the marketing trip.

And Kenya's ARM Cement Ltd. is mulling an issue of notes to fund a $300 million expansion program, a market source said.

No other details were immediately available on Thursday.

Poland picks banks

Poland has mandated Daiwa Securities and Nomura Securities as bookrunners for an issue of Japanese yen-denominated bonds, according to an announcement from the sovereign's Ministry of Finance.

"The transaction will be executed in the near future," the announcement said.

No other details were immediately available on Thursday.

Bantrab, Gazprombank do deals

On Wednesday, Guatemala's Banco de los Trabajadores (Bantrab) priced a $150 million issue of 9% notes due 2020 at par to yield 9%, a market source said.

The notes were initially talked at a yield in the low-9% area.

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

And Russia's Gazprombank OJSC priced a CHF 200 million issue of 2 3/8% notes due 2016 at 99.921 to yield 2.403%, or mid-swaps plus 217 bps, a market source said.

Deutsche Bank, GPB Financial Services and UBS were the bookrunners for the Regulation S deal.

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