Delhi International Airport, Security Bank price; Vakifbank tightens; Asian bonds firm

By Aleesia Forni

Virginia Beach, Jan. 27 – India’s Delhi International Airport (Dial) and Security Bank Corp. issued bonds on Tuesday.

Delhi International priced its new $288.75 million issue tighter than talk to yield 6.12%, with the deal attracting an order book of around $4.75 billion.

The notes were sold via Regulation S.

Citigroup, HSBC, JPMorgan and Standard Chartered Bank were the bookrunners. Proceeds will be used to refinance debt.

Meanwhile, Makati City, Philippines-based Security Bank priced $300 million of 3.95% notes due 2020 at par on Tuesday via ANZ, Deutsche Bank and UBS.

In the secondary market, Turkiye Vakiflar Bankasi TAO (Vakifbank)’s new deal traded slightly better, while spreads in the Asian sector firmed.

Vakifbank in focus

Vakifbank’s recently priced deal was quoted at 99.5 bid, 99.75 offered on Tuesday, a trader said, adding that the new issue was an example of “a decent deal gone bad.”

“We think the pricing is fair,” the trader said. “We think the execution is miserable.”

Istanbul-based lender Vakifbank sold the $500 million 6 7/8% 10-year notes at 99.687 to yield 6.95% on Monday, a syndicate source said.

The deal’s order book was “seemingly quite weak,” a London-based analyst said.

“We would imagine other banks in Turkey are now unlikely to try issuing tier 2 [bonds] in the short-term given the response to the deal,” the analyst added.

Other Turkish bonds remained active on Tuesday, ending the session slightly better on the day.

Asian bonds firm

Asian credit rallied during the session on Tuesday, a trader said, with spreads closing around 2 bps to 5 bps tighter overall.

The trader added that the bulk of trading during the session was in recently priced deals.

China Shenhua Overseas Capital Co. Ltd.’s $500 million of 3 1/8% bonds due 2020 were quoted at 167 bps bid, while its 3 7/8% bonds due 2025 traded up at 194 bps bid.

Woori Bank’s $350 million of 2 5/8% notes due July 22, 2020 traded 6 bps tighter on the day at 120 bps bid.

Similarly, Korea Export-Import Bank’s $1.25 billion 2 7/8% notes due 2025 were trading tighter at around 100 bps bid.

Christine Van Dusen contributed to this review

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