Russia to bring deal later this week; Esti Energia, Korea National Oil price deals

By Aleesia Forni

Columbus, Ohio, March 26 - Emerging markets will be defined in part by the expected benchmark dollar deal from Russia (Baa1/BBB/BBB) this week, according to a market source.

Russia confirmed the deal will be split into three parts that mature in five, 10 and 30 years, which is a "longer [tenor] than many expected," the source said.

The country's existing bonds due 2020 widened 5 basis points on this news early in the London session, but firmed as Monday progressed.

The deal is expected to price later this week after investor meetings wrap in London on Tuesday.

In the primary market, Esti Energia AS priced a €300 million issue, while Korea National Oil Corp. priced $1 billion notes.

Esti Energia prices 4¼ notes

Following last week's roadshow, Esti Energia (Baa1/BBB+) priced a €300 million issue of 4¼% notes due 2018 at mid-swaps plus 248 bps on Monday, according to a company release.

The notes priced at 99.163 to yield 4.405%.

Deutsche Bank AG, London Branch, and Nordea Bank Finland plc acted as joint bookrunners.

The transaction saw a "strong" order book that exceeded €600 million with 96 investors, the release stated.

The proceeds of the offering will be used for general corporate purposes, including the company's capital expenditure program.

The Tallinn, Estonia-based company is engaged in the production of energy and shale oil, as well as the sale of electric and thermal power.

Korea National gets $1 billion

Korea National Oil priced a $1 billion issue of 3 1/8% senior unsecured notes (A1/A) at Treasuries plus 210 bps, according to a syndicate source.

The five-year notes priced at 99.706 to yield 3.189%.

The notes were issued under the company's $6 billion global medium-term notes program.

The proceeds will be used for general corporate purposes.

Barclays, Bank of America Merrill Lynch, BNP Paribas, Deutsche Bank, HSBC and Korea Development Bank were bookrunners.

Korea National Oil is an oil and gas production and exploration company based in Anyang, South Korea.

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