Asian high-grade issues widen on day; Banque Saudi Fransi prices; Kexim taps bookrunners

By Paul A. Harris and Aleesia Forni

Columbus, Ohio, May 15 - At one point during the volatile Asian session, recent high-grade issues from Yanzhou Coal Mining Co. and Sinopec were as much as 10 basis points wider with fast money shorting the market, according to a London-based market source.

However, Sinopec's recently minted 2 ¾% notes due 2017, which priced last week at a 210 bps spread in a $1 billion issue, remain very well bid, the source added.

Legacy high grades widened by as much as 15 bps.

Short covering in the Asian afternoon triggered some tightening, but spreads still ended wider on the day.

In Asian high-yield corporates, Vedanta Resources fell on dealer selling. Vedanta's 9½% notes due July 2018 were two points lower, at 98 bid.

Asian high yield was down a point to 1¾ points on the day, the source said.

Flows were balanced, particularly in Chinese high yield where there was dip buying from private banks and slightly better selling from real money accounts.

Banque Saudi Fransi notes

In the primary market, the new issue from Banque Saudi Fransi closed the London session at 100¼ bid, compared to the day's high of 100.3, according to a source there.

Banque Saudi Fransi priced a $750 million 2.947% issue of five-year senior unsecured notes at mid-swaps plus 185 bps or par on Tuesday.

The deal priced at the low end of guidance, which was set at mid-swaps plus 200 bps.

Citigroup, Deutsche Bank and Credit Agricole were bookrunners for the Regulation S deal.

The upsized deal's success may reflect the lack of Saudi bank debt available to investors, the source said.

Kexim roadshow

Also in the primary market, Export-Import Bank of Korea (Kexim) has mandated Citigroup, Bank of America Merrill Lynch and RBS to arrange investor meetings in the United States from May 21 to May 25, according to a market source.

© 2015 Prospect News.
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