Asian sovereign CDS tighter; Russian Railways, China Resources poised to sell paper, notes

By Aleesia Forni

Columbus, Ohio, March 21 - Asian sovereign credit default swaps were between 3 basis points to 5 bps tighter on Wednesday, according to a market source.

Both Indonesia and the Philippines saw cash down 25 to 75 cents, while high-yield cash also fell 25 to 75 cents on good two-way flows.

Agile Property Holdings Ltd.'s 9 7/8% senior notes due 2017 saw "good demand" on Wednesday.

The China-based developer priced $700 million of the notes on March 13.

Additionally, corporates were better across the board on Wednesday, with oil and gas names outperforming, up 3/8 point for the day.

Russian Railways eyes deal

Though Russian Railways (Rurail) (Baa1/BBB/BBB) has not yet released price talk for its expected dollar- or ruble-denominated deal, one market source believes initial guidance could come as early as this week after rounding up investor meetings on Thursday.

The Moscow-based railroad operator's expected seven-year dollar-denominated paper may pay 25 bps higher than its existing bonds maturing in 2017, at approximately 320 bps over mid-swaps, according to a market source.

Emirates NBD prices

In the primary market on Wednesday, Emirates NBD PJSC priced a $1 billion issue of 4 5/8% senior unsecured notes (A3//A+) due 2017 at Treasuries plus 362 bps, a portfolio manager said on Wednesday.

The Dubai-based bank priced the notes at 99.335 to yield 4.776%.

Bank of America Merrill Lynch, Deutsche Bank, Emirates NBD, HSBC and National Bank of Abu Dhabi were the bookrunners.

China Resources mandates bookrunners

Also in the primary, China Resources Gas Group Ltd. (Baa1//BB+) has mandated Citigroup and DBS as joint global coordinators and Citigroup, DBS, HSBC and JPMorgan as joint lead managers and joint bookrunners ahead of a possible offering of one or more series of dollar-denominated notes.

A roadshow with institutional investors will begin on Thursday.

The Rule 144A and Regulation S deal will be issued under the company's $1.5 billion global medium-term notes program.

The deal is subject to market conditions.

The Hong Kong-based liquefied gas company intends to use proceeds for general corporate purposes, including acquisitions and working capital.

Schahin comes together at 5 7/8%

Schahin II Finance Co. (SPV) Ltd.'s $750 million offering of amortizing senior secured notes (Baa3/BBB-/BBB-) came together at a 5 7/8% yield, according to a market source.

Nomura, Morgan Stanley, Deutsche Bank and Mizuho are joint bookrunners.

Legal maturity is September 2023, while expected maturity is September 2022.

The average life is 7.5 years.

Amortization is uneven and begins in the second semester after closing.

For collateral, the Brazilian company will use its newly built ultra-deepwater drillship, receivables from charter and services contracts, owner shares, trust accounts, insurance proceeds and Cerrado residual payment rights.

The company plans to fund $90.8 million of reserve accounts at closing.

Proceeds will be used to refinance a loan provided to the company to purchase the vessel.

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