Giti Tire, Cabei issue new notes; SECO, Dubai trade up; some Russian bonds tick higher

By Christine Van Dusen

Atlanta, Nov. 10 – China’s Giti Tire Pte. Ltd. and Honduras’ Central American Bank for Economic Integration (Cabei) sold notes on a Monday that was fairly active in the morning and quieted down in the afternoon, with spreads tightening slightly.

Long-dated bonds from names like Saudi Electricity Co. and Dubai traded up on Monday, a London-based trader said.

The recent issue of notes from Dubai’s DIFC Investments LLC – $700 million 4 3/8% notes due 2024 that priced at par – regained some of its footing but still traded wider than launch, he said.

The sukuk came to the market at mid-swaps plus 185 basis points via Dubai Islamic Bank, Emirates NBD Capital, Noor Bank and Standard Chartered in a Regulation S deal.

Bonds from Kuwait Projects Co. were “solid,” he said.

“Feels like some good money has been invested in Kuwaiti names lately,” he said. “Burgan Bank 2020s have caught a real bid again, and the Burgan perpetuals went back above park today, closing at 100¼ mid.”

The new issue of 3% notes due 2019 that Abu Dhabi’s Mubadala GE Capital Ltd. priced at 99.375 to yield 3.136% were trading above par on Monday, he said.

The notes priced at a spread of Treasuries plus 150 bps with bookrunners Barclays, Citigroup, First Gulf Bank, HSBC and Natixis in a Rule 144A and Regulation S deal.

“Holding nicely,” he said.

The day also saw buyers for the long end of Qatar’s curve, which was 20 bps tighter on the week.

Russia in focus

From Russia, the sovereign’s 3½% notes due 2019 that priced at 99.195 traded Monday morning at 97¼ bid, 97¾ offered after last week’s 97 bid, 97½ offered, a trader said.

The 4 7/8% notes due in 2023 that priced at 98.162 were quoted on Monday at 98.38 bid, 99.02 offered after last week’s 97.85 bid, 98.35 offered.

Russia’s 5 7/8% notes due in 2043 that priced at 97.187 were seen Monday morning at 100¾ bid, 101¼ offered after last week’s 100½ bid, 101½ offered.

And the sovereign’s 3 5/8% euro-denominated notes due 2020 that priced at 99.533 moved to 100.88 bid, 101.88 offered after last week’s 100¾ bid, 101¾ offered, he said.

Giti sells notes

China’s Giti Tire priced S$100 million 6% notes due Nov. 17, 2017 at par to yield 6%, matching talk, a market source said.

ANZ, DBS and ICBC were the bookrunners for the Regulation S deal.

The issuer is a Shanghai-based tire manufacturer and supplier.

Cabei issues bonds

Honduras’ Cabei sold CHF 100 million ½% notes due Nov. 28, 2018 at 100.01 to yield mid-swaps plus 40 bps, a market source said.

The notes were talked at a spread of 39 bps to 40 bps.

UBS was the bookrunner for the deal.

Cabei is a microfinance lender based in Tegucigalpa, Honduras.

Price talk from Cofco

Cofco Corp. subsidiary Double Rosy Ltd. set talk in the Treasuries plus 220 bps area for up to $800 million notes due in five years (expected rating: //A), a market source said.

Goldman Sachs, BOC International, HSBC and DBS Bank are the joint global coordinators. The other joint leads for the Regulation S deal are JPMorgan, ANZ, Bank of Communications and ICBC.

The proceeds will be used for general corporate purposes and to on-lend to Cofco.

The issuer is a food-processing company based in Beijing.

Chinese corporate on road

China’s Beijing Infrastructure Investment Co. Ltd. departed Monday for a roadshow to market a dollar-denominated issue of notes, a market source said.

RBS, HSBC, JPMorgan, ICBC and Bank of China are the bookrunners for the Regulation S deal.

Mumtalakat sets roadshow

Bahrain Mumtalakat Holding Co. BSC will set out on Nov. 13 for a roadshow for a dollar-denominated and benchmark-sized issue of Islamic bonds, a syndicate source said.

BNP Paribas, Deutsche Bank, Mitsubishi UFG and Standard Chartered Bank are the bookrunners for the Regulation S deal.

The roadshow will start in Kuala Lumpur and travel to Singapore, Abu Dhabi and Dubai before concluding on Nov. 17 in London.

Mumtalakat is a real estate company based in Bahrain.

“Rare issuer, having last tapped the market in 2010 with a five-year deal,” a trader said.

Israel Electric attracts orders

The final book for Israel Electric Corp. Ltd.’s new $1.25 billion issue of 5% notes due in 2024 – priced last week at 99.031 – was $3 billion, a market source said.

About 60% of the orders came from the United States, 20% from the United Kingdom, 13% from other Europe, 4% from Switzerland and 3% from others.

Fund managers picked up 80%, pension funds 14% and banks and private banks 6%.

The notes came to the market at a yield of 5 1/8%, or Treasuries plus 277.2 bps, via Barclays and Citigroup in a Rule 144A and Regulation S deal.

Vietnam deal oversubscribed

Vietnam’s $1 billion 4.8% notes due Nov. 19, 2024 that priced at par brought in $10.6 billion from 450 orders, a market source said.

The notes came to the market at par to yield 4.8% with bookrunners Deutsche Bank, HSBC and Standard Chartered Bank. BNP Paribas, Daiwa Capital Markets and Mizuho Securities were the co-managers for the Rule 144A and Regulation S deal.

About 55% of the orders came from the United States, 28% from Europe and 17% from Asia.

Fund managers accounted for 84%, banks 12% and insurance and pension funds 4%.

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