Colombia, BOC Aviation tap market; Ghana, Ukraine plan deals; Emirates offering on deck

By Christine Van Dusen

Atlanta, March 23 – Colombia and Singapore’s BOC Aviation Pte. Ltd. sold notes on Monday as Asian credits were again firm, with high-grade bonds generally unchanged.

Oil company bonds from China were unchanged, even after China Petrochemical & Chemical Corp. (Sinopec Group) reported weaker-than-expected earnings, a London-based trader said.

Bonds from Chinese property companies were unchanged to ¼-point higher, he said.

“Flow in the secondary was light, with focus on the much-anticipated primary supply before the Easter holidays,” he said. “In Korea, the market is a touch softer, with real-money accounts sidelined at current yields.”

Notes from India were firm on Monday, he said, while the Philippines’ long end moved a ½-point higher and the Indonesia long end was ½-point to ¾-point higher.

“Had a mix of buyers and short-covering this morning in the long end while we had mostly buyers in the belly,” he said. “Onshore accounts were fading the rally and continued to shorten duration.”

Latin American credits improved on Monday after an illiquid and slow Friday, a New York-based trader said.

Many corporate names saw stronger bids as the move in Treasuries attracted investors to Latin American names, he said.

Brazil-based Petroleo Brasiliero SA saw its bonds tighten throughout the session, with the curve narrowing about 10 basis points into the close and the 2019s, 2020s and 2021s tightening as much as 35 bps, he said.

Brazil’s Vale SA also narrowed during the session, and high-grade credits like Braskem SA moved higher on light flows, he said.

Banks from Colombia also ticked higher after struggling in recent sessions, he said, and even Chile’s Cencosud SA found its way out of outperformance to move about 1½ points higher on its 2025s and 2045s.

“The Street and clients both helped bid the curve up,” he said.

Colombia taps 2045 notes

Colombia priced a $1 billion tap of its 5% notes due June 15, 2045 at 99.366 to yield 5.041%, or Treasuries plus 253 bps, a market source said.

The notes were talked at a spread in the 265 bps area.

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

The original $1.5 billion issue priced in January at 99.018 to yield 5.064%, or Treasuries plus 262.5 bps.

BOC Aviation issues bonds

Singapore’s BOC Aviation priced $750 million 3% notes due March 30, 3030 at 99.458 to yield 3.118%, or Treasuries plus 170 bps, a market source said.

The notes were talked at a spread in the 190 bps area.

BOC International, Citigroup, HSBC and JPMorgan were the bookrunners for the Rule 144A and Regulation S offering.

The aircraft leasing company is wholly owned by Bank of China.

Emirates airline deal ahead

The United Arab Emirates-based Emirates set initial talk in the mid-swaps plus 100 bps area for an offering of about $913 million Islamic bonds due March 31, 2025, a market source said.

Abu Dhabi Islamic Bank, Citigroup, Dubai Islamic Bank, ENBD Capital, HSBC, JPMorgan, National Bank of Abu Dhabi and Standard Chartered Bank are the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used to pay for delivery of superjumbo jets.

Pricing is expected to take place on Wednesday.

Emirates is an airline based in Dubai.

ColTel sets talk

Colombia Telecomunicaciones SA ESP (ColTel) set talk in the mid- to high-8% area for a dollar-denominated offering of benchmark-sized perpetual notes, a market source said.

BBVA, HSBC, Citigroup and Credit Suisse are the bookrunners for the Rule 144A and Regulation S deal.

The notes are expected to price as soon as Wednesday.

The telecommunications company is based in Bogota.

Guidance from Hyundai Capital

Korea’s Hyundai Capital Services set talk in the Treasuries plus 130 bps area for a dollar-denominated offering of benchmark-sized notes due in 5½ years, a market source said.

ANZ, BofA Merrill Lynch, Citigroup and Deutsche Bank are the bookrunners for the Rule 144A and Regulation S deal, which was expected to price on Monday.

Hyundai Capital is a Seoul-based firm that manages financial services for Hyundai Kia Automotive Group.

Ghana, Ukraine seek issuance

Ghana is looking to issue up to $1.5 billion of notes in the first half of this year, a market source said.

The proceeds will be used to refinance domestic and external debt and for general budgetary purposes.

And Ukraine is looking to issue $1 billion of notes in April, a market source said.

Other details were not immediately available on Monday.

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