Singapore’s Perennial issues notes; roadshow for China Energy; BankDhofar eyes bonds

By Christine Van Dusen

Atlanta, March 9 – Singapore’s Perennial Real Estate Holdings Ltd. sold notes on Monday as paper from Russia opened mostly unchanged – following a 35-basis point tightening on Friday – as the ceasefire with Ukraine seemed to strengthen.

“But there are still concerns related to the coastal town of Mariupol, where one of the Ukraine’s largest steel plants is located,” a London-based analyst said. “Seizing that could provide a boost to the rebel-held economy.”

Looking to Turkey, trading was quiet on Monday morning after weakness on Friday, when credit default swaps moved 8 bps wider and banks outperformed the sovereign, he said.

Investors remained concerned about the strength of the lira and the upcoming meeting of the Central Bank, he said.

Bonds from the Middle East were quiet on Monday morning, following a Friday that saw spreads get support from the move in rates, he said.

From Latin America, the weakness seen Friday from the move in Treasuries remained on Monday for many credits, a New York-based trader said.

Chile-based Cencosud SA’s 2045s, in particular, suffered, though sellers were scant, he said.

The 6 5/8% notes due in 2045 priced at 99.909 to yield Treasuries plus 420 bps.

Banks from Mexico pulled back from last week’s highs and Mexico-based Cemex SAB de CV still struggled, he said.

Brazil-based Petroleo Brasileiro SA saw its bonds continue to widen, with the 2020s through 2024s getting hurt the most. Brazil-based Vale SA widened in sympathy, especially the 2022s, the New York trader said.

There were more real-money sellers during the session that usual, he said.

Much of the downtrade was driven by sovereign and currency weakness, he said.

‘Lackluster’ for Middle East

Looking to the Middle East, the session was “lackluster,” a London-based trader said.

Saudi Electricity Co.’s 2044s were 5 bps wider on the week.

“Must admit, I see very limited upside in many bonds on a spread basis here, post-the NFP move, but technicals are impossible to fight on many names,” he said. “Some of the high-yield and long-dated and perpetuals are still attracting some interest.”

Dar al-Arkan Holdings’ 2018s saw some nibbling from retail investors, he said.

And Lebanon was performing well, on a spread basis, tightening between 20 bps and 25 bps on the month.

Asia in focus

High-grade bonds from Asia started Monday’s session unchanged and closed there, or 5 bps tighter, a London-based trader said.

“Flows were balanced, with strong demand throughout the day,” he said. “China banks were 2 bps to 5 bps tighter with good demand in five-year and below names.”

Meanwhile, bonds from Korea were mostly unchanged, as were most notes from India, though the recent 2025s from Axis Bank dipped on Monday.

High-yielders dip

Among high-yield names, Chinese property companies saw their notes close 1/8 point to 3/8 point lower, the trader said.

“High-yield sovereigns were broadly lower, with Philippines long end down 1½ points and the belly ½ point to ¾ point lower,” he said. “Indonesia’s curve was 1½ points to 2 points lower, with the belly ¾ point lower.”

Activity for the sovereigns was mostly quiet, with mixed flows, he said.

Perennial issues notes

Singapore-based real estate developer Perennial priced S$100 million 4¼% notes due March 16, 2018 at par to yield 4¼%, a market source said.

DBS Bank, United Overseas Bank and HSBC were the bookrunners for the Regulation S deal.

Proceeds will be used for general corporate purposes, including refinancing of existing borrowings, financing of working capital, investments and capital expenditure requirements.

China Energy sets roadshow

China Energy Reserve and Chemicals Group Overseas Co. Ltd. will set out on Wednesday for a roadshow to market a renminbi-denominated issue of notes, a market source said.

Barclays is the sole bookrunner for the Regulation S deal.

The roadshow will be held in Hong Kong and Singapore and conclude on Thursday.

The issuer is a subsidiary of China Energy Reserve and Chemicals Group Co. Ltd.

BankDhofar seeks issuance

BankDhofar is looking to issue dollar-denominated notes, a market source said.

No other details were immediately available on Monday.

The company is an Oman-based lender.

© 2015 Prospect News.
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