Asia market volatile; Hana, Inversiones CMPC launch, sell notes; Russia still in spotlight

By Paul A. Harris and Aleesia Forni

Columbus, Ohio, April 18 - Volatility marked the Asian session on Wednesday, with indexes and single-name credit default swaps ending three to five basis points wider, according to a trader.

Indonesia's new 3¾% notes due 2022 fell to 98.38 bid, 98.63 offered in Asia trading, after pricing on Tuesday at 99.176.

The most active issue was the new tap of Citic Pacific Ltd.'s 6 7/8% senior notes due Jan. 21, 2018, which traded to 100 1/8 bid, but later eased to 99 7/8 bid, par offered. The $350 million deal priced at par on Tuesday.

Most prices were unchanged to slightly positive, but the tone was cautious, the trader said.

Also in the secondary market, Commercial Bank of Qatar Ltd.'s $500 million five-year bond was 20 bps tighter versus its launch.

The bank priced the 3 3/8% bond at mid-swaps plus 235 bps, or 98.992, on April 3.

The primary market saw Korea's Hana Bank launch a $500 million issue of senior secured notes, while Chile's Inversiones CMPC SA sold a $500 million 10-year issue.

Hana Bank launch

Hana Bank is planning a $500 million 5.5-year issue of fixed-rate senior secured notes, according to a market source.

Final price guidance is set at Treasuries plus 260 bps to 265 bps, 15 bps to 20 bps wider than Hana Bank's 4¼% notes due 2017.

UBS is managing the proposed deal, which is being brought under the Seoul, Korea-based bank's $6 billion global medium-term note program.

Proceeds from the Regulation S and Rule 144A offering will be used for general corporate purposes.

Inversiones sale

In the Latin American space on Wednesday, Inversiones CMPC (Baa2/BBB+/BBB+) sold $500 million of 4½% senior unsecured notes due 2022 at Treasuries plus 265 bps, according to a market source.

The notes priced at 98.906 to yield 4.638%, the source added.

Bank of America Merrill Lynch, HSBC, JPMorgan and Mitsubishi were joint bookrunners for the transaction.

Proceeds from the Rule 144A and Regulation S deal will be used for general corporate purposes.

The Santiago, Chile-based company produces paper and related products primarily in Latin America and Mexico.

Russia deals

Elsewhere, Russia is still "very much the center of attention," a market source said.

The new Evraz Group SA 7.4% notes due 2017 were trading at 100.60 bid, 100.65 offered at the European close after trading as high as 100 7/8 bid earlier.

The Moscow-based steel producer priced $600 million of the notes on Tuesday.

Also in that region, Promsvyazbank set guidance for its proposed five-year notes at 8½% to 8 5/8% following investor meetings during the week of April 9, according to a market source.

The commercial bank is based in Moscow.

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