Morocco brings eurobond; Indonesia, Al Hilal on deck; Vakifbank firms; Turk Telekom wider

By Aleesia Forni

Virginia Beach, June 13 – Morocco priced an offering of eurobonds during a mostly quiet Friday session for emerging markets.

The €1 billion offering came around 10 basis points tighter than talk.

In other sovereign news, Indonesia also announced plans to sell a euro-denominated offering on Friday, a source said.

Abu Dhabi-based Al Hilal Bank also joined the forward calendar on Friday.

The bank announced plans to kick of a roadshow next week ahead of an offering of tier 1 perpetual bonds.

The secondary market saw both tranches of the recent Turkey’s Turk Telekomunikasyon AS deal selling off early during Friday’s session, a London-based analyst said.

In other trading from that region, a source saw Turkiye Vakiflar Bankasi TAO’s (Vakifbank) recent €500 million offering of 3½% five-year bonds trading better to close the week.

The bonds sold with a spread of Treasuries plus 292 bps on Tuesday.

Morocco prices tight

Morocco priced €1 billion of 3½% bonds due 2024 with a spread of mid-swaps plus 215 bps on Friday, according to a market source.

The notes priced tight of talk, which was set at 225 bps to 230 bps.

BNP Paribas, Commerzbank and Natixis were the bookrunners.

The sovereign last sold eurobonds on Sept. 28, 2010, pricing €1 billion 4½% notes due 2020 at 99.495 to yield 4.563%, or mid-swaps plus 200 bps.

Indonesia eyes euros

Another sovereign is also planning to bring an offering of eurobonds to the primary market.

Indonesia announced on Friday that it has mandated three banks as bookrunners for a possible offering, a market source said.

BofA Merrill Lynch, Citigroup Global Markets Inc. and Deutsche Bank Securities are the bookrunners for the transaction.

Al Hilal Bank roadshow

Abu Dhabi-based Al Hilal Bank will set out on June 15 for a roadshow to market a dollar-denominated offering of benchmark-sized perpetual Islamic bonds, a market source said.

HSBC, Emirates NBD, Standard Chartered Bank, Citigroup, National Bank of Abu Dhabi and Al Hilal Bank are the bookrunners for the proposed tier 1 offering.

The meetings will kick off in Abu Dhabi and Dubai on Sunday before moving to Hong Kong on Tuesday, Singapore on Wednesday, London on June 20 and Switzerland on June 23.

The lender is owned by the Abu Dhabi government.

Turk Telekom trades down

A market source saw Turk Telekom’s $500 million of 3¾% five-year notes and $500 million of 4 7/8% 10-year bonds trading down around ½ point.

The five-year notes sold at 99.612 to yield 3.836%, while the 10-year bonds sold at 99.165 to yield 4.982%.

The $1 billion two-part issue priced on Thursday.

Barclays, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Emirates NBD and J.P. Morgan Securities LLC were the joint bookrunners.

The telecommunications company is based in Ankara, Turkey.

Christine Van Dusen contributed to this review.

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