Big deals from CNPC, Ukraine, Turkey, Mexico; Sharjah lender prints notes; spreads tighten

By Christine Van Dusen

Atlanta, April 9 - China National Petroleum Corp. (CNPC), Ukraine, Turkey and Mexico priced sizeable issues on Tuesday as spreads tightened and many emerging markets bonds - including those from Commercial Bank of Qatar - didn't budge from Monday's trading levels.

Also selling notes on Tuesday were the United Arab Emirates' Sharjah Islamic Bank and Singapore's CWT Ltd.

"Asian markets are generally opening firmer, with lower-than-expected Chinese inflation numbers for March," a London-based analyst said. "US Treasuries sold off yesterday following the recent-highs reached on Friday as a result of the non-farm payroll figures."

The Markit iTraxx SovX CEEME ex-EU index spread on Monday narrowed by 8 basis points to 192 bps. The corporate index tightened dramatically, moving in 25 bps to Treasuries plus 203 bps.

Meanwhile, Turkey's Akbank TAS set initial guidance for its upcoming deal, and Lebanon was looking to price increases of its dollar-denominated notes due in 2023 and 2027.

In its new deal, government-owned oil and gas company CNPC priced a three-tranche issue of $2 billion notes due 2016, 2018 and 2023, a market source said.

The deal included $750 million 1.45% notes due 2016 that priced at 99.898 to yield 1.45%, or Treasuries plus 115 bps. The notes were talked at a spread in the 120 bps area.

The second tranche of $500 million 1.95% notes due 2018 priced at par to yield 1.95%, or Treasuries plus 125 bps. The notes were talked at a spread in the 130 bps area.

The third tranche, $750 million 3.4% notes due 2023, priced at 99.966 to yield 3.404%, or Treasuries plus 165 bps, after being talked at a spread in the Treasuries plus 170 bps area.

Citigroup, ICBC, Barclays, BOCI, BofA Merrill Lynch, Credit Agricole, Deutsche Bank, HSBC, JPMorgan, Morgan Stanley and Standard Chartered were the bookrunners for the Rule 144A and Regulation S deal.

Ukraine, Turkey sell bonds

Tuesday also saw Ukraine sell $1.25 billion 7½% notes due 2023 at par to yield 7½%, following price talk in the range of 7½% to 7 5/8%.

Citigroup, JPMorgan, Sberbank and VTB Capital were the bookrunners for the Rule 144A and Regulation S deal.

And Turkey sold $1.5 billion 4 7/8% notes due 2043 at 98.834 to yield 4.95%, a market source said.

Citigroup, Credit Suisse and JPMorgan were the bookrunners for the Securities and Exchange Commission-registered deal.

The proceeds will be used for general financing purposes, which many include the repayment of debt.

Mexico prices notes

Mexico's €1.6 billion issue of 2¾% notes due 2023 came to the market Tuesday at 99.492 to yield mid-swaps plus 120 bps.

The notes were talked at a spread in the 135 bps area.

BNP Paribas, Deutsche Bank and HSBC were the bookrunners for the Securities and Exchange Commission-registered deal.

The proceeds will be used for general governmental purposes and for liability management.

A simultaneous offer to purchase notes due in 2013, 2015, 2017 and 2020 was also announced.

New notes from SIB

The United Arab Emirates' Sharjah Islamic Bank (SIB) priced a $500 million issue of 2.95% Islamic bonds due 2018 at par to yield 2.95%, a market source said.

The notes were talked in the low-3% area.

Al Hilal Bank, HSBC, Kuwait's Liquidity Management House and Standard Chartered Bank were the bookrunners for the Regulation S deal.

And Singapore-based CWT priced S$100 million 3.9% notes due 2019 at par to yield 3.9%.

DBS Bank and Standard Chartered Bank were the bookrunners for the Regulation S deal.

Akbank sets talk

In other deal-related news, Turkey-based lender Akbank set initial guidance in the 4 3/8% area for its planned dollar-denominated issue of five-year notes.

Emirates NBD Capital, HSBC, National Bank of Abu Dhabi and Societe General CIB are the bookrunners for the Regulation S deal.

Lebanon plans taps

Lebanon is planning to tap its 6% notes due 2023 and its 6¾% notes due 2027.

The size for each existing tranche is $500 million.

Fransa Invest Bank SAL, Natixis and Standard Chartered Bank are the bookrunners for the Regulation S deal.

JBS-Friboi issues bonds

This news followed Monday's pricing of Brazil-based JBS-Friboi's $275 million add-on to its 6¼% notes due 2023 at 99.989 to yield 6¼%, a market source said.

Deutsche Bank, JPMorgan and Santander were the bookrunners for the Rule 144A and Regulation S deal.

The original $500 million issue priced in January at 98.183 to yield 6½% via BB Securities, Bradesco BBI, Deutsche Bank, JPMorgan and Santander in a Rule 144A and Regulation S deal.

Gerdau attracts orders

About 49% of the orders for Brazil-based steel producer Gerdau SA's new $750 million issue of 4¾% notes due 2023 came from the United States, the company said in an announcement.

About 35% came from Europe, 15% from Latin America and 1% from Asia.

"The majority of buyers of the bonds were fund managers, private banks, insurance companies and banks," the company said. "As a result of the meaningful demand for the offer, the coupon closed at the lowest cost ever reached by the company in the international market."

The notes priced at 99.020 to yield 4 7/8%, or Treasuries plus 314 bps, with JPMorgan and Morgan Stanley in a Rule 144A and Regulation S deal.

The proceeds will be used to repay indebtedness and for general corporate purposes.

Indonesia oversubscribed

The recent $3 billion two-tranche notes due in 2023 and 2043 from Indonesia drew a significant order book, a market source said.

The deal included $1.5 billion 3 3/8% notes due 2023 that priced at 98.952 to yield 3½%. The notes attracted more than $6.25 billion from more than 235 investors, with 50% from the United States, 20% from Europe, 17% from Asia without Indonesia and 13% from Indonesia.

Asset managers picked up 68%, banks 18%, insurance 11% and private banks 3%.

Final book for Indonesia 2043s

Indonesia's second tranche, $1.5 billion 4 5/8% notes due 2043, priced at 98.012 to yield 4¾%. The final book was more than $6.25 billion from more than 255 accounts.

About 56% came from the United States, 27% from Europe, 13% from Asia without Indonesia and 4% from Indonesia.

Deutsche Bank, JPMorgan and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.

CIFI deal in focus

China-based property developer CIFI Holdings Group Co. Ltd.'s recent $275 million issue of 12¼% notes due 2018 brought in about $1.1 billion from 118 accounts, a market source said.

About 85% came from Asia and 15% from Europe. Asset and fund managers picked up 60%, banks 23%, private banks 15% and insurance and corporates 2%.

The notes priced at par to yield 12¼% with Citigroup, Standard Chartered Bank, Deutsche Bank, HSBC and RBS in a Regulation S deal.

The proceeds will be used for refinancing existing debt, for the acquisition of new projects or land for development, for the development of existing projects and for general corporate purposes.

In February the company canceled plans for a dollar-denominated offering of notes due to market conditions.

Ceylon bank draws $2 billion

The final book for Sri Lanka-based Bank of Ceylon's $500 million issue of 5 3/8% notes due 2018 was more than $2 billion from more than 140 accounts, a market source said.

The notes priced at par to yield 5 3/8% via UBS in a Regulation S deal.

About 74% of the orders came from Asia and 26% from Europe.

Fund managers picked up 55%, private banks 37%, banks 3% and corporates and others 5%.

The proceeds will be used for general corporate purposes.

© 2015 Prospect News.
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