Singapore Airlines sells notes; Russia, Middle East see buyers; Lat-Am corporates set talk

By Christine Van Dusen

Atlanta, March 26 - Singapore Airlines sold notes on Wednesday as bonds from Russia saw buyers and Brazil's Minerva SA and Peru's Fondo Mivivienda SA gave price guidance.

"We have enjoyed a couple of relatively stable days, with [emerging markets] generally feeling firmer," a London-based analyst said. "There will, however, be some focus on the European Union and United States summit today and any comments on Russia that come out of it."

Against this backdrop, bonds from Russia were seeing buyers on Wednesday morning as investors assumed that further sanctions were unlikely and that Ukraine's aid package from the United States was making progress.

"Investors discount the likelihood of further sanctions," she said.

Turkey's Asya Katilim Bankasi AS (Bank Asya) attracted buyers following news that Qatar Islamic Bank may take a stake in the lender, she said.

"Nonetheless, with the local elections moving ever closer, we expect some volatility for the rest of the week," she said. "The Middle East and Africa remain strong with good buyers of DP World, Qatar and Gabon, as well as perpetual paper."

Looking to Latin America, lower-beta credits rallied in trading on Wednesday, a New York-based trader said.

Cash prices were up ¼ point to 1¾ points amid spread tightening and a rally in U.S. Treasuries, she said.

"Seems like with month-end, quarter-end approaching and limited inventories in dealers' hands, prices find upward momentum the easy path to follow," she said. "Higher-beta credits have a consolidation-type day after good run higher in the last week or so."

Venezuela bonds mostly flat

Prices for bonds from Venezuela finished the session mostly unchanged or down 25 cents, with the sovereign's 2027s at 77 and PDVSA's 2017s at 851/4, the New York trader said.

"Volumes and activity started light but increased as the day progressed," she said. "We saw better sell side from accounts."

Singapore Airlines sells notes

In its new deal, Singapore Airlines priced a two-tranche issue of S$500 million notes due 2021 and 2024, a market source said.

The S$200 million tranche of 3.145% notes due 2021 priced at par to yield 3.145%. The S$300 million tranche of 3¾% notes due 2024 also priced at par, to yield 3¾%.

Minerva gives guidance

Brazil-based food processor Minerva set initial talk in the 9% area for its upcoming issue of dollar-denominated perpetual notes, a market source said.

BofA Merrill Lynch, HSBC and Itau BBA are the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be sued to repay existing indebtedness and for general corporate purposes.

Mivivienda sets talk

Peru-based Fondo Mivivienda set talk in the Treasuries plus 180 basis points area for its upcoming issue of $300 million notes due in five years, a market source said.

BofA Merrill Lynch, JPMorgan and Credicorp are the bookrunners for the deal.

Mivivienda is a for-profit mortgage financing institution owned by the Republic of Peru and based in Lima.

Seaspan plans notes

China's Seaspan Corp. is planning to offer senior notes due in 2019, according to a company announcement.

Sterne, Agee & Leach Inc. will serve as the sole bookrunner. BB&T Capital Markets, DNB Markets, Incapital, Janney Montgomery Scott, Ladenburgh Thalmann & Co. Inc., Wunderlich Securities, Maxim Group LLC, National Securities Corp. and Santander are the co-managers for the deal.

The proceeds will be used for general corporate purposes.

Hong Kong-based Seaspan provides shipping line with outsourcing services.

ADB oversubscribed

Philippines-based Asian Development Bank's upsized €1.5 billion issue of 3/8% notes due 2017 "achieved wide primary market distribution," according to a company announcement.

The notes priced at 99.860 to yield Bunds plus 16.9 bps via BNP Paribas, Deutsche Bank, Goldman Sachs International and HSBC.

About 33% of the bonds went to Asia, 1% to the Americas and 66% to Europe, the Middle East and Africa. About 64% of the bonds went to central banks and official institutions, 19% to banks, 15% to fund managers and 2% to other types of investors.

The proceeds will be used for general governmental purposes and non-concessional operations.

The Manila-based regional development bank plans to raise between $13 billion and $15 billion from the bond markets this year, the announcement said.

CCB deal draws orders

China Construction Bank Corp.'s new $300 million issue of 2 3/8% notes due 2017 drew $1.2 billion of orders from 100 accounts, a market source said.

The notes priced Tuesday at 99.661 to yield Treasuries plus 157.5 bps with bookrunners Bank of China Hong Kong, China Construction Bank International, HSBC, ICBC Asia, Standard Chartered Bank and UBS in a Regulation S deal.

About 88% of the orders were from Asia and 12% from Europe. Banks picked up 44%, fund managers 23%, insurers 17%, the public sector 10% and private banks 6%.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.