IDBI issues notes; Albaraka Turk, New Europe advance deals; trading quiet ahead of holiday

By Christine Van Dusen

Atlanta, Nov. 23 – India’s IDBI Bank Ltd. sold notes on a relatively quiet Monday for emerging markets assets, as investors looked ahead to the Thanksgiving holiday in the United States.

“We expect a relatively quiet week for markets as the U.S. heads into the Thanksgiving holiday and as markets are priced for major monetary policy actions in December,” according to a report from Barclays Capital.

Still, some issuers managed to advance deals on Monday, including Turkey’s Albaraka Turk Katilim Bankasi AS and New Europe Property Investments plc.

Also on Monday, Hungary received some attention after Fitch Ratings affirmed the sovereign’s rating at BB+ with a positive outlook, which means the sovereign “has lost the last chance to get the investment grade rating this year,” according to a report from Schildershoven Finance BV.

“We do not rule out some correction in the sovereign bonds today, following a strong rally last week, which was based on anticipation of a possible rating upgrade,” the report said.

In other news, bonds from Bulgarian telecommunications company Vivacom are not expected to react strongly to the news that a Bulgarian businessman has bought the company and agreed to take on €400 million of its debt, Schildershoven said.

“Investors will first assess the possible changes in Vivacom due to the new owner,” the report said.

Market-watchers were also keeping an eye out for Turkey’s Kuveyt Turk, which on Friday finished a roadshow for an issue of notes that is expected to come to the market this week.

And trading of Latin American bonds was “very quiet,” a New York-based trader said, with “Brazil opening a bit lower. The rest seems unchanged in price, so slightly tighter.”

Mexico in focus

Mexico’s bonds could get a boost from the news that Petroleos Mexicanos SAB de CV is receiving more than $6 billion as a result of its hedging strategy, Schildershoven said in a report.

“The government will receive payments at the beginning of December,” the report said. “Standard & Poor’s analysts noted that the government’s risk management demonstrated very strong risk management skills.”

But the sovereign’s bonds “remain under pressure, as the lucrative hedge ends in 2015,” the report said. “In 2016 Pemex will face international oil prices that will negatively influence the company’s financial and operational results.”

IDBI sells notes

In its new deal, India’s IDBI Bank (Dubai International Financial Centre Branch) sold $350 million 4.26% notes due in 2020 at Treasuries plus 255 basis points, a market source said.

The notes were talked at a spread in the 270-bps area.

BNP Paribas, ANZ, Citigroup, HSBC, JPMorgan and Standard Chartered Bank were the bookrunners for the deal.

The proceeds will be used to reimburse the company for funding of new and existing green projects.

Other details were not immediately available on Monday.

IDBI Bank is a public sector bank based in Mumbai.

Albaraka sets talk

Turkey’s Albaraka Turk set initial talk in the 10½% area for a dollar-denominated issue of Islamic bonds due in 10 years, a market source said.

The notes were previously whispered at about 10%.

Standard Chartered Bank, Barwa Bank, Dubai Islamic Bank, Emirates NBD Capital, Nomura International, Noor Bank and QInvest are the bookrunners for the Regulation S deal.

The issuer is an Istanbul-based lender.

New Europe talks notes

New Europe Property Investments – via subsidiary NE Property Cooperatief UA – set talk in the mid-swaps plus 362.5-bps area for a euro-denominated issue of notes due Feb. 26, 2021, according to a company filing.

Deutsche Bank and JPMorgan are the bookrunners for the Regulation S deal.

The company, based in Isle of Man, has offices in Romania, Slovakia and Serbia.

NBAD prices floaters

National Bank of Abu Dhabi PJSC priced a $200 million issue of floating-rate notes due in November 2017 at par, according to a company filing.

The notes will pay monthly interest beginning on Dec. 20, starting at one-month Libor plus five bps for the first month and then stepping up each month by 5 bps until hitting Libor plus 60 for the Nov. 20, 2016 payment. Then it steps up to Libor plus 62 bps, 64 bps, 65 bps, 67 bps, 69 bps, 71 bps, 74 bps, 77 bps, 80 bps, 83 bps, 86 bps until reaching Libor plus 90 bps for the final payment.

Credit Agricole Corporate and Investment Bank is the manager.

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