Africa Finance issues notes; Sinopec multi-tranche deal active; Noor Bank underperforms

By Christine Van Dusen

Atlanta, April 22 – Nigeria’s Africa Finance Corp. priced new notes on a Wednesday that was active in the secondary market for the new five-tranche issue of dollar- and euro-denominated notes from China Petrochemical & Chemical Corp. (Sinopec Group).

That deal included $2.5 billion 2½% notes due 2020 priced at 99.576 to yield Treasuries plus 125 basis points after talk in the 145-bps area. Those notes opened the Asian session on Wednesday at Treasuries plus 125 bps, a trader said.

Later in the day the notes moved to 125 bps bid, 123 bps offered.

The 3¼% notes due 2025 that priced at 99.022 to yield Treasuries plus 145 bps, after talk in the 160-bps area, moved to 146 bps on Wednesday morning.

The 4.1% notes due in 30 years that priced at par to yield Treasuries plus 152 bps, following talk in the 180-bps area, traded at 152 bps, he said. Later in the day the notes were seen at 154 bps bid, 151 bps offered.

Later on Wednesday, the notes were spotted at 152 bps bid, 150 bps offered.

The deal also included 0.5% notes due 2018 that priced at 99.716 to yield 0.596%, or mid-swaps plus 50 bps, following talk of 50 bps to 55 bps, and 1% notes due 2022 that priced at 99.243 to yield 1.113%, or mid-swaps plus 80 bps, matching talk.

Citigroup, HSBC, Goldman Sachs, Bank of China and Deutsche Bank were the joint global coordinators for the Rule 144A and Regulation S deal.

The Beijing-based company also mandated Citigroup, HSBC, Goldman Sachs, Bank of China, Deutsche Bank, BofA Merrill Lynch, CCB International, DBS Bank, ICBC International, ING, JPMorgan, Mizuho Securities, Morgan Stanley, Societe Generale CIB and Standard Chartered Bank as joint bookrunners and joint lead managers.

Asia in focus

In other trading from Asia, most credits closed the session a little bit wider amid profit-taking on recent issues, a London-based trader said.

“New issues were mixed, with some profit-taking,” he said.

The new 2025 notes from Taiwan’s Formosa Plastics Group, which priced at a spread of 157 bps over Treasuries, moved to 158 bps and closed the Asian session at 160 bps.

Bank of China, HSBC, ANZ and Mizuho Securities were the bookrunners for the Regulation S deal.

“Malaysia’s 10-year and 30-year sukuk outperformed today,” he said, noting that the 10-years were 4 bps tighter and the 30-years 6 bps tighter.

“In the high-yield space, China property closed unchanged to ¼ point lower,” he said. “High-yield sovereigns were higher, with Philippines’ long end up ¼ point, 1 bp to 3 bps tighter on spread, while Indonesia’s long end outperformed, up ½ point to ¾ point on light flow.”

SECO improves, Noor ‘sluggish’

Among assets from the Middle East, Saudi Electricity Co.’s 2044s closed a couple of basis points better on Wednesday, a trader said.

And the new issue from Dubai-based Noor Bank PJSC – 2.788% notes due 2020 that priced at par to yield mid-swaps plus 130 bps – was “sluggish,” he said.

“Off to a sluggish start, with a slew of fast-money and short-term punters selling,” he said.

Standard Chartered Bank, Al Hilal Bank, Citigroup, Dubai Islamic Bank, Emirates NBD Capital, Qinvest and Sharjah Islamic Bank were the bookrunners for the Regulation S deal.

DPWorld remains liquid

Investors added more five-year senior bank bonds from the United Arab Emirates to their portfolios on Wednesday, a trader said.

Dubai’s DPWorld saw its 2037s remain liquid, while sellers emerged for the company’s 2017s during the morning, he said.

“Dar al-Arkan Holdings still feels offered,” he said. “Active enough day.”

Africa Finance sells bonds

In its new deal, Lagos-based Africa Finance priced a $500 million issue of 4 3/8% notes due April 29, 2020 at 99.027 to yield 4.595%, or Treasuries plus 320 bps, a syndicate source said.

The notes were initially talked at a spread in the Treasuries plus 350 bps area.

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

Doosan attracts orders

The final book for South Korea-based Doosan Heavy Industries & Construction Co., Ltd.’s new issue of $500 million 2 1/8% notes due April 27, 2020 was more than $2.8 billion from 154 accounts, a market source said.

The notes came to the market at par to yield 2 1/8%, or Treasuries plus 95 bps, following talk of 95 bps to 100 bps.

HSBC, Morgan Stanley and JPMorgan were the bookrunners for the Rule 144A and Regulation S deal.

About 43% of the orders came from Asia, 38% from the United States and 19% from Europe, with 61% from fund managers, 21% from insurers, 11% from banks, 6% from central banks and sovereign wealth funds and 1% from private banks.

Bumi Serpong releases book

Indonesia’s PT Bumi Serpong Damai Tbk.’s new issue of $225 million 6¾% notes due in 2020 drew a final order book of more than $750 million from more than 70 accounts, a market source said.

About 85% of the orders came from Asia and 15% from Europe.

The notes were initially expected to total $250 million and were talked at a yield in the 7% area.

Citigroup and UBS were the bookrunners for the Regulation S notes.

The proceeds will be used for the development of new investment properties and infrastructure, for land bank acquisitions and for general corporate purposes.

© 2015 Prospect News.
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