Volatility stalls Naftogaz notes; Gazprom pricing; CES on tap; Nigeria shops dollar deal

By Rebecca Melvin

New York, Nov. 13 – Emerging markets debt issuers continued to come to the market on Tuesday, although one issuer that was expected to price during the session postponed due to market volatility.

PJSC Naftogaz of Ukraine issued a late update saying that final terms for its planned $500 million of five-year notes was postponed amid market volatility. Market participants were instructed to expect the next update early Wednesday, according to a syndicate source.

Naftogaz had guided pricing for the five-year notes to a yield in the 10.9% area earlier in the session.

The order book for the planned Rule 144A and Regulation S deal at the time of guidance was in excess of $700 million.

Citigroup and Deutsche Bank are bookrunners for the deal and arranged roadshow meetings on Monday in the United States and London.

The Kiev-based oil and gas company was joined in the market by Moscow-based natural gas producer PJSC Gazprom, which announced a planned benchmark-sized offering of dollar-denominated five-year loan participation notes.

The Gazprom notes were talked to yield in the area of 3%, plus or minus 5 basis points.

Pricing was tightened from initial price thoughts in the 3 1/8% area. Final terms are expected later Tuesday, according to a market source.

The notes, being issued by Gaz Capital SA, are being marketed by Gazprombank, JPMorgan and UniCredit as joint lead managers and bookrunners.

The Regulation S notes will be listed on the Dublin Stock Exchange.

Also in the Central & Emerging Europe region, CEZ as said it is pricing €500 million bonds due 2022. The Czech Republic-based integrated electricity conglomerate guided yield to mid-swaps plus 70 bps. Pricing was tightened from initial price talk in the mid-swaps plus 85 bps area; and order books for the Regulation S deal were more than €1 billion.

Final terms were expected to be set later Tuesday.

Elsewhere, Nigeria held a fixed-income investor meeting in London regarding a three-tranche offering of dollar-denominated notes (expected rating: /B/).

The deal was expected to include seven-year and 12-year notes as well as a longer-dated tranche.

Citigroup and Standard Chartered Bank arranged the meeting.

Nigeria was last in the emerging markets debt market in February when it priced $2.5 billion of 12- and 20-year eurobonds at par to yield 7.143% and 7.696%, respectively.

Nigeria’s existing sovereign bond yield curve widened by about 10 bps, a London-based trader said.

Also in the Middle East and Africa region, Emirates NBD Bank PJSC held a fixed-income investor meeting on Monday for a benchmark-sized offering of dollar-denominated five-year notes.

ANZ, BofA Merrill Lynch, Citigroup, Emirates NBD Capital and ING are joint lead managers and joint bookrunners of the Regulation S deal.

The Dubai-based lender, one of the region’s largest banking groups in terms of assets, said pricing will be subject to market conditions.

The Latin America region was quiet with no deals heard to be announced or priced on Tuesday.

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