Issuance from Logan Property, Ezion; Turkey unchanged; Etisalat mandates bookrunners

By Christine Van Dusen

Atlanta, May 27 - China's Logan Property Holdings Co. Ltd., China's Bank of Communications and Singapore's Ezion Holdings Ltd. sold notes on an active Tuesday with balanced flows for emerging markets assets.

"Busy day, after the long weekend, as we head into the last few trading days of May," a London-based trader said. "The market retains its technically solid bid."

In trading, the recent issue of 4¾% notes due 2024 from Dubai's Majid al Futtaim Holding LLC (MAF) - priced at 99.835 to yield 4.771%, or mid-swaps plus 195 basis points - moved 10 bps tighter, he said.

And the 2021, 2022 and 2023 notes from Dubai saw demand on Tuesday, he said.

"The spreads on the 2023s through 2029s were at fresh wides today," he said. "Bahrain retains a very firm tone. The 2022s and 2023s are near a 114 cash price now."

Looking to Russia and Ukraine, the latter held its election on Sunday, with Petro Poroshenko claiming the presidency, even though violence kept many pro-Russian voters in Eastern Ukraine away from the ballot box.

"Russia issued a cautionary endorsement of the outcome," a London-based analyst said, "raising hopes that Ukraine and Moscow can work together."

But "Donetsk's international airport was seized by the pro-Russian Ukraine's government in their response to Russia's openness to hold talks," she said. "As a result, the Ukrainian government launched an air strike against the pro-Russian militants."

Against this backdrop, bond prices were mostly unchanged for most bonds from Russia, as well as from Turkey, she said.

"We are seeing decent demand for [Russian] corporates from retail," she said.

Logan Property prices notes

China's Logan Property Holdings sold $300 million 11¼% notes due June 4, 2019 at par to yield 11¼%, a market source said.

Citigroup, Deutsche Bank, HSBC, Goldman Sachs, JPMorgan, Citic Securities, VTB Capital, ABC International and ICBC International were the bookrunners for the Regulation S deal.

The proceeds will be used for general corporate purposes and to refinance existing indebtedness and acquire new land for development.

Logan Property is a Shenzhen-based real estate development company.

New deal from Ezion

Singapore's Ezion Holdings sold S$150 million 4 7/8% notes due June 11, 2021 at par to yield 4 7/8%, a market source said.

DBS was the bookrunner for the Regulation S deal.

The issuer is a marine logistics and support services company.

Chinese bank sells bonds

China's Bank of Communications sold CHF 300 million 7/8% notes due June 26, 2017 at 99.654 to yield mid-swaps plus 90 basis points, a market source said.

HSBC and UBS were the bookrunners for the Regulation S deal.

Trikomsel gives guidance

Indonesia's Trikomsel Pte. Ltd. set talk in the 7 7/8% area for its planned S$100 million issue of three-year notes, a market source said.

ANZ, Deutsche Bank and Standard Chartered Bank are the bookrunners for the Regulation S deal.

The proceeds will be used to refinance a portion of existing borrowings.

The issuer is a wholly owned subsidiary of PT Trikomsel Oke Tbk, a mobile phone operator based in Jakarta, Indonesia.

Beijing Auto on roadshow

China's Beijing Automotive Group Co. Ltd. is on a roadshow for a renminbi-denominated issue of notes, a market source said.

DBS Bank and UBS are the bookrunners for the Regulation S deal.

Etisalat picks banks

Abu Dhabi-based telecommunications company Etisalat has mandated Deutsche Bank, Goldman Sachs, HSBC and RBS to lead a roadshow beginning June 1, a market source said.

An issue of notes may follow.

"With fair and reasonable pricing I expect any possible bond transaction to be quite well received," a trader said.

Orlen mandates bookrunners

Poland-based oil refiner PKN Orlen is planning to issue up to €1 billion of eurobonds with a maximum tenor of 10 years, according to a company announcement.

BNP Paribas, HSBC, UniCredit and Santander are the bookrunners for the deal, a market source said.

The notes will be issued by a special purpose vehicle, with Orlen as the guarantor.

Sukuk ahead for Indonesia

Indonesia has mandated four banks as bookrunners for an issue of Islamic bonds that is expected to price during the second half of this year, a market source said.

CIMB, Emirates NBD, HSBC and Standard Chartered Bank are the bookrunners for the transaction.

KNOC on deck

Korea National Oil Corp. (KNOC) has mandated Barclays, BNP Paribas, Citigroup, Deutsche Bank and Societe Generale as bookrunners for a bond issue, a market source said.

No other details were immediately available on Tuesday.

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