Emerging markets strong as SQM prices; Ukreximbank plans note issue; DEWA sets price talk

By Christine Van Dusen

Atlanta, April 14 - Despite troubles in Spain and weakness in some areas of Eastern Europe on Wednesday, emerging markets remained solid and kept up the slow and steady flow of new issuance with the pricing of Sociedad Quimica y Minera de Chile SA's upsized dollar notes, market sources said.

"It's busy," a London-based trader said. "It's a very strong market."

Emerging markets managed to avoid infection by Spain, where the government was struggling to consolidate its troubled banks in an effort to keep the sector solvent, sources said. "We're seeing weakness in Spain and also Eastern Europe, but there's no contagion effect on (emerging markets) at the moment," the trader said.

Of particular interest in emerging markets on Wednesday, he said, was a planned five-year bond from Kiev, Ukraine-based import-export lender Ukreximbank. "It's already trading up in the gray," he said. "I'm looking to start trading it. That's on our radar at the moment."

This deal - along with a eurobond that's being whispered about from Ukrainian energy company DTEK and the recent news of planned issuance from MHP SA - could help explain why Ukraine was trading up more than a point earlier in the week.

The trader was also keeping an eye on the upcoming planned issue of notes from Russia's Nomos-Bank via UBS, VTB Capital and Nomos-Bank.

"I spoke to a client who said it looked OK, but I think there's a lot of competition in Russian banking and Nomos isn't one of the top ones in the current market," he said. "But if they've got yield and a half-decent story, it would be worth trading it."

Also making news on Wednesday was Sociedad Quimica y Minera de Chile (SQM), which priced an upsized $250 million 5½% senior notes due April 21, 2020 at 99.817 to yield 5.524%, or Treasuries plus 170 basis points.

"That's well inside guidance of 187.5 basis points area," a market source said.

Also on Wednesday, Dubai Electricity and Water Authority set price talk for its planned benchmark-sized, dollar-denominated five-year securities at 8½% to 8 5/8%, a source said. That deal could price as soon as Thursday.

Thursday also marks the end of the roadshow for Brazil's Banco Industrial e Comercial SA, or BicBanco, which has been marketing a planned dollar-denominated offering of 10-year tier 2 notes in Hong Kong, Geneva, Zurich, Singapore and Miami. New York and London are the last stops, a Brazil-based source said.

Also being marketed via a roadshow this week is Hong Kong's Glorious Property Holdings Ltd.'s planned dollar-denominated offering of global bonds. That deal could price as soon as the end of this week, a source said.

SQM prices upsized notes

Chile's Sociedad Química y Minera de Chile priced an upsized $250 million 5½% senior notes due April 21, 2020 (Baa1/BBB/) at 99.817 to yield 5.524%, or Treasuries plus 170 bps, a market source said.

JPMorgan and Deutsche Bank were the bookrunners for the Rule 144A and Regulation S deal, which was upsized from $200 million.

The price came in below talk that was in the 187.5 bps over Treasuries area.

Proceeds will be used to repay existing debt.

SQM is a Santiago-based fertilizer and mining company.

DEWA talks deal

Dubai Electricity and Water Authority (Ba2/BBB-) set price talk for its benchmark-sized, dollar-denominated five-year securities at 8½% to 8 5/8%, according to a market source.

Citigroup, National Bank of Abu Dhabi, RBS Securities and Standard Chartered Bank are the bookrunners for the deal, which could price as soon as Thursday.

DEWA is a state-owned utility company.

Glorious Property starts roadshow

Glorious Property Holdings will begin a roadshow on Thursday for a dollar-denominated offering of global bonds (expected ratings B1/B+), according to a market source.

Deutsche Bank Securities, JPMorgan and Standard Chartered Bank are leading the deal.

The Hong Kong-based mainland China property developer plans to price the bonds at the conclusion of the roadshow, pending market conditions.

BicBanco roadshow ends Thursday

Brazil's Banco Industrial e Comercial, also known as BicBanco, will hold a roadshow for its planned dollar-denominated offering of 10-year tier 2 notes (expected Ba2) until Thursday, according to a market source.

The marketing trip began Tuesday in Hong Kong, Geneva and Zurich and traveled on Wednesday to Singapore and Miami. The roadshow will end in London and New York.

HSBC, JPMorgan and Standard Chartered are the joint bookrunners for the Rule 144A and Regulation S deal, which will be launched subject to market conditions.

BicBanco is Sao Paulo-based lender.

Ukreximbank plans bond

Ukraine's Ukreximbank is planning to issue a five-year bond, according to a market source.

No other details on the deal were available Wednesday.

Ukreximbank is Ukraine's state-run import-export bank based in Kiev.

More Turkey details

Turkey priced €1.5 billion 5 1/8% notes due May 18, 2020 (Ba2/BB/BB+) at 99.383 to yield mid-swaps plus 190 bps, according to a market source.

The deal priced Tuesday but additional details on the coupon, price and maturity were obtained Wednesday.

Commerzbank, Credit Suisse, Deutsche Bank and DZ Bank were the bookrunners for the deal.

Paul A. Harris contributed to this report

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