Primary sees deals from Emirates, ColTel, Astra Sedaya, Beijing Capital; Hikma sets roadshow

By Christine Van Dusen

Atlanta, March 25 – Dubai-based Emirates, Colombia Telecomunicaciones ESP (ColTel), Indonesia’s PT Astra Sedaya Finance and China’s Beijing Capital Group Co. Ltd. sold notes on Wednesday as Asian bonds softened, with high-grade cash names widening slightly.

The recent issue of notes from Singapore’s BOC Aviation Pte. Ltd. – 3% notes due 3030 that priced at 99.458 to yield 3.118%, or Treasuries plus 170 basis points – saw profit-takers and moved down to 163 bps before closing the Asian session at 165 bps bid, 162 bps offered, a trader said.

“New issues were mixed,” he said.

Korea’s Hyundai Capital Services’ new 2 5/8% notes due 2020 that priced at 99.848 to yield Treasuries plus 125 bps traded Wednesday at 121 bps bid, 118 bps offered, unchanged from the previous day, he noted.

From China, most high-grade property bonds were firm on Wednesday, though China Overseas Land and Investment’s 2024s traded lower, even after the company received an asset injection from its parent company.

“Korea was 1 bp to 2 bps wider,” he said. “India closed unchanged, with the short end repriced 5 bps tighter after the wave of buying yesterday.”

In other news, Jordan’s Hikma Pharmaceuticals plc has mandated Citigroup, Barclays, HSBC and National Bank of Abu Dhabi to lead a roadshow for a dollar-denominated issue of notes, according to a company announcement.

The roadshow will begin on Friday. A Regulation S deal is expected to follow.

Hikma is an Amman, Jordan-based pharmaceutical company that produces branded and non-branded generic and in-licensed products.

Emirates sells bonds

The United Arab Emirates-based Emirates priced a $913.03 million issue of 2.471% notes due March 31, 2025 at par to yield 2.471%, or mid-swaps plus 90 bps, a market source said.

The notes were initially talked at a spread in the 100 bps area.

Abu Dhabi Islamic Bank, Citigroup, Dubai Islamic Bank, ENBD Capital, HSBC, JPMorgan, National Bank of Abu Dhabi and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used to pay for delivery of superjumbo jets.

Emirates is an airline based in Dubai.

ColTel issues notes

In its new deal, Bogota, Colombia-based telecommunications company ColTel priced $500 million of 8½% perpetual notes at par to yield 8½%, a market source said.

The notes were talked at a yield in the mid- to high-8% area.

BBVA, HSBC, Citigroup and Credit Suisse were the bookrunners for the Rule 144A and Regulation S deal.

“The company’s operation performance has improved for the last two years,” according to a report from Schildershoven Finance BV. “At the same time, the company has a low liquidity and is highly exposed on Colombia’s national currency.”

The bank believes the new issue may be of interest to investors who “believe in Colombia’s peso strength,” the report said. “We expect further peso depreciation in the nearest future.”

Notes from Astra Sedaya

Indonesia’s Astra Sedaya Finance priced $300 million of 2 7/8% notes due in 2018 to yield Treasuries plus 200 bps, a market source said.

The notes were talked at a spread in the 225 bps area.

HSBC, DBS, Mizuho Securities and MUFG were the bookrunners for the Regulation S deal.

The issuer is based in Jakarta and is one of the finance companies in the PT Astra International Tbk. conglomerate.

Beijing Capital does deal

China’s Beijing Capital Group priced $600 million of 2 7/8% notes due April 1, 2018 at 99.934 to yield 2.898%, or Treasuries plus 200 bps, a market source said.

The notes were talked at a spread in the 230 bps area.

The proceeds from the notes will be used for general corporate purposes including paying back existing debt.

The state-owned company aggregates private capital for investment in infrastructure, development, agriculture and loans.

Exim India draws orders

The new issue of green bonds from Export-Import Bank of India – $500 million of 2¾% notes due in 2020 that priced on Tuesday to yield Treasuries plus 147.5 bps – drew a final order book of $1.6 billion from 140 accounts, according to a company announcement.

BofA Merrill Lynch and JPMorgan were the bookrunners for the Regulation S deal.

Fund managers picked up 58%, banks 20%, and sovereign wealth funds and insurance companies 18%.

Asian investors dominate

About 60% of the orders for Export-Import Bank of India’s new deal went to Asian investors; 30% to Europe, the Middle East and Africa; and the rest to offshore U.S. investors, the market source said.

“This is the first country dollar green bonds, which shows that dedicated investor base in Asia is growing,” according to a report from Schildershoven Finance BV.

The Mumbai-based finance institution will use the proceeds to fund green projects in Bangladesh and Sri Lanka.

“Bonds traded quiet in the context of 148 bps bid, 145 bps offered and closed the day at 150 bps bid, 145 bps offered,” a trader said.

IL&FS prices notes

On Tuesday, India’s IL&FS Transportation Networks Ltd. – via subsidiary ITNL Offshore Two – sold RMB 690 million of 7½% notes due April 1, 2018 at 98.688 to yield 8%, a market source said.

CLSA, ANZ, HSBC and Standard Chartered Bank were the bookrunners for the Regulation S transaction.

IL&FS Transportation is a surface transportation infrastructure company based in Mumbai, India.

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