Primary hosts Icici; investors focus on Trump, TDB; Kuwait, Marfrig, Evraz plan issues

By Christine Van Dusen

Atlanta, March 2 – India’s Icici Bank Ltd. sold notes on fairly strong Thursday for emerging markets assets as investors digested President Donald Trump’s speech and kept an eye on Eastern and Southern African Trade and Development Bank (TDB).

“Trump’s speech and the renewed confidence in the U.S. economy after all sparked a global risk-on, with the positive sentiment in stock markets swapping over in today’s market,” a London-based analyst said. “EM credit in the meantime is holding fairly well despite Trump’s speech and recent Fed-speak on a potentially imminent rate hike in mid-March. Markets are hoping for more clarity tomorrow when [Federal Reserve Chair Janet Yellen], among other policymakers, is scheduled to hold a speech.”

In deal-related news, Kuwait planned a roadshow and two issuers – Brazil’s Marfrig Global Foods SA and emerging markets-focused Evraz Group SA – sought issuance.

In trading, Oman’s new $5 billion notes due 2022, 2027 and 2047 were very active on Thursday, a trader said.

The $1 billion 3 7/8% five-year notes priced at 99.488 to yield 3.989%, or mid-swaps plus 190 basis points, following talk of 215 bps.

The $2 billion 5 7/8% 10-years priced at 99.618 to yield 5.425%, or mid-swaps plus 300 bps, following talk in the 245 bps area.

And the $2 billion 6½% 30-years priced at 99.360 to yield 6.549%, or mid-swaps plus 387.5 bps. Talk was set in the 425 bps area.

“We are seeing those bonds being traded very actively, just a touch above reoffer,” the trader said.

Alizz, Citigroup, Dubai Islamic Bank, Gulf International Bank, HSBC, JPMorgan and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds from the issue will be used to address the sultanate’s budget deficit.

TDB eyed

Investors were also watching Burundi-based TDB, which saw its outlook changed by Moody’s Investors Service to positive from stable.

This came as the company was in investor meetings – for a new issue dollar-denominated notes due in five years – and holding a tender offer for its 6 3/8% notes due in 2018.

The deadline for the tender is March 6, but the roadshow is ongoing, a syndicate source said.

Icici sells bonds

In its new deal, India’s Icici Bank priced $300 million 3¼% notes due Sept. 9, 2022 at 99.447 to yield 3.361%, or Treasuries plus 135 bps, a market source said.

The notes were talked at a spread of 135 bps to 140 bps.

BofA Merrill Lynch, HSBC, JPMorgan, MUFG and Icici Bank’s Singapore branch were the bookrunners for the Regulation S deal.

Icici Bank is based in Mumbai.

Slovakia gives guidance

Slovakia set initial talk in the mid-swaps plus 75 bps area for a euro-denominated issue of notes due in March of 2037, a market source said.

Deutsche Bank, HSBC, Societe Generale CIB and Raiffeisen International Group are the bookrunners for the Regulation S deal.

Kuwait sets roadshow

Kuwait will set out during the week of March 6 for a roadshow to market a dollar-denominated issue of Islamic bonds due in five and 10 years, a market source said.

Citigroup, JPMorgan and HSBC are the lead managers for the Regulation S deal. Deutsche Bank, Standard Chartered and NBK Capital are co-managers.

Marfrig plans issuance

Brazil’s Marfrig Global Foods is looking to issue new notes, via MARB BondCo plc, alongside tender offers for two series of notes, according to a company announcement.

The total purchase price for each $1,000 principal amount will be as follows, according to a notice:

• $1,060 for the $281,911,000 outstanding 8 3/8% senior notes due 2018 issued by Marfrig Holdings (Europe) BV; and

• $1,027 for the $484,729,000 outstanding 9½% senior notes due 2020 issued by Marfrig Overseas Ltd.

The dealer managers are BB Securities, Banco Bradesco BBI, HSBC Securities, Morgan Stanley and Santander Investment Securities.

Marfrig is a Sao Paulo-based food processing company.

Evraz to issue new notes

Emerging markets-focused Evraz Group is planning to issue new notes with a tender offer for any and all of two series of notes and up to $300 million of one other series, according to a company announcement.

In the any-and-all offer, the purchase price for each $1,000 principal amount is as follows:

• $1,080 for the $125,095,000 of outstanding $700 million 9½% notes due April 24, 2018; and

• $1,053.75 for the $527.41 million of outstanding $850 million 6¾% notes due April 27, 2018.

In the capped offer, the company is tendering for its $1 billion of 6½% notes due April 22, 2020 at a purchase price of $1,075 for each $1,000 principal amount.

The tender offers will end at 5 p.m. ET on March 10, with payment set for March 15 for the 2018 notes and March 21 for the 2020 notes.

Noteholders who tender their notes and also subscribe to the new notes may apply for an allocation identifier code, which may give them priority in the allocation of new notes.

The joint dealer managers are Bank GPB International, Citigroup Global Markets, Deutsche Bank, J.P. Morgan Securities and VTB Capital.

Evraz is a vertically integrated steel making and mining company based in London with operations mainly in Russia.

Slovenia prints taps

On Wednesday, Slovenia priced €1.3 billion taps of its notes due March 22, 2027 and Nov. 3, 2040, according to an announcement from the finance ministry.

The €800 million 1¼% notes due 2027 priced at 97.010 to yield Bunds plus 129 bps. The original €1 billion 1¼% notes due 2027 priced at mid-swaps plus 63 bps, following talk in the 65 bps area, in January.

The €500 million 1¾% notes due 2040 priced at 86.901 to yield Bunds plus 158.2 bps. The original €1 billion issue of notes due in November 2040 at 97.829 to yield mid-swaps plus 90 bps in October.

Barclays, BNP Paribas, Deutsche Bank, Goldman Sachs and Societe Generale CIB were the bookrunners.

Susanna Moon contributed to this article.

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