National Bank of Oman, Agricultural Bank of China price; September ends with a whimper

By Christine Van Dusen

Atlanta, Sept. 30 – National Bank of Oman SOAG and Agricultural Bank of China Ltd. printed notes on Tuesday to end a challenging, weaker month for emerging markets assets.

“Flows today are a little bit all over the place, but probably for choice, there are better sellers around,” a London-based trader said.

Spreads over the month of September have struggled for names from the Middle East, he said.

“Far more bonds are wider than tighter, the opposite of the bulk of this year,” he said.

Among the notes to take the biggest beating during the month were the 2015s from Dar al Arkan Holdings.

“They’ve been pounded, with very little support,” he said. “This bond matures in February but has really been heavy, and this curve is inverted now.”

Still, some bonds managed to perform during the month, including Kuwait Energy’s 2019s, he said.

“It’s now very tricky to source,” he said. “Superb effort.”

Looking to Latin America, it was another down day, with most corporate names trading near the previous day’s close, a New York-based trader said.

Though spread-based credits tightened a touch at the open, most moved lower as the day went on, he said.

Volumes were high for Brazil’s Petroleo Brasileiro SA (Petrobras), he said, while Mexico’s Cemex SAB de CV held in fairly well.

But other Mexican corporates were at lows not seen for a long time, he said.

Overall, liquidity was thin on Tuesday for Latin American corporate names that trade less often, he said.

“Sellers everywhere,” he said.

Lat-Am sovereigns suffer

Latin American sovereign bonds have also been suffering, another New York-based trader said. For example, Brazil’s 2045s that closed in August at 102.50 were seen on Tuesday at 94.50 amid election concerns and a larger sell-off, he said.

Overall, September was one of the worst months for Latin American sovereigns, he said.

Argentina, however, outperformed, with its bonds moving up as much as four points on the month.

Meanwhile, local debt has weakened for most corporate bonds in the emerging markets universe, according to a report from UFS Investment Co.

Oman bank sells bonds

National Bank of Oman priced $500 million 3 1/8% notes due Oct. 7, 2019 at 99.177 to yield 3.305%, or mid-swaps plus 135 basis points, a market source said.

Credit Agricole CIB, HSBC, National Bank of Abu Dhabi and Standard Chartered Bank were the bookrunners for the Regulation S deal.

“Saw good street demand,” a trader said.

“It opened at 99.375 bid, steadily traded higher to 99.875, then faded a little back to 99.65 and closing at 99.70 bid, 99.80 offered. Very solid effort and feels fine, this one.”

Chinese lender prints notes

Agricultural Bank of China priced RMB 500 million of 3.7% notes due Oct. 14, 2019 at par to yield 3.7%, a market source said.

RBC Capital Markets was the bookrunner for the deal.

The commercial bank is based in Beijing.

Singapore corporate hires bank

Singapore’s Chip Eng Seng Corp. Ltd. has mandated DBS Bank to lead a roadshow that will start on Thursday, a market source said.

No other details were immediately available on Tuesday.

Chip Eng Seng is a Singapore construction and property development company.

Roadshow for Korean Reinsurance

Korean Reinsurance Co. Ltd. is planning a dollar-denominated issue of notes that will be marketed during a roadshow starting on Oct. 6, a market source said.

HSBC and JPMorgan are the bookrunners for the deal.

The issuer is based in Seoul, South Korea.

Polish bank to issue notes

Poland’s Bank Gospodarstwa Krajowego is looking to issue €500 million notes due in 10 years, a market source said.

BNP Paribas, HSBC and Societe Generale are the bookrunners for the deal.

The lender is based in Warsaw.

Final book for Frasers

The final book for Singapore-based Frasers Centrepoint Ltd.’s new issue of S$200 million of 3.95% notes due Oct. 7, 2021 was about S$300 million, a market source said.

The deal came to the market at par to yield 3.95% with bookrunners DBS Bank, HSBC, OCBC and Standard Chartered Bank in a Regulation S deal.

Frasers Centrepoint, a subsidiary of Frasers and Neave, Ltd., is a residential property developer and retail mall owner and operator in Singapore.

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