Beijing Infrastructure issues notes; roadshows underway and ahead; Indian bonds outperform

By Christine Van Dusen

Atlanta, July 20 – China’s Beijing Infrastructure Investment (Hong Kong) Ltd. sold notes on a quiet but firm Monday of trading for Asian credits, given the holiday in Tokyo, as U.S. Treasury yields rose and commodity prices dipped.

“The overall tone feels firm, with investment-grade cash closed unchanged to 2 basis points tighter,” a trader said.

Some names saw “selective demand,” he said, with Cnooc Ltd.’s 2023s and 2024s trading up and moving about 1 bp to 2 bps tighter.

“Financials closed 2 bps to 5 bps tighter,” he said. “Korea is unchanged.”

Bonds from India outperformed, he said.

“Closed 5 bps tighter as 10-year corporates traded tighter,” he said.

The price of gold and crude oil moved lower as the session went on, and against this backdrop there were some buyers of two-year to five-year bonds during the afternoon, another trader said.

“Sovereigns were firm, but we’re seeing better sellers in Indonesia’s front and back end today, with buyers in the belly,” he said.

Latin American bonds put in a quiet day, with Brazil making the most moves, a New York-based trader said.

Five-year credit default swaps spreads for Brazil closed at 275 bps from 266 bps while Mexico’s finished the session at 129 bps from 127 bps.

Bonds from Venezuela moved higher and Argentina moved lower, he said.

“Very light flows for the day, with better sellers of low-beta and high-yield seen later in the session,” he said.

In deal-related news, China’s Bank of Communications and Russia’s AK Bars Bank OJSC were on roadshows and Brazil’s Cosan Overseas Ltd. scheduled a marketing trip.

Beijing Infrastructure notes

In its new deal, Beijing Infrastructure sold €600 million 1˝% notes due July 29, 2019 at 99.412 to yield 1.653%, or mid-swaps plus 135 bps, matching talk, a market source said.

Bank of China and Goldman Sachs were the joint global coordinators for the Regulation S deal. BNP Paribas, DBS Bank, HSBC and JPMorgan were the other bookrunners.

The notes were issued by Eastern Creation II Investment Holdings Ltd.

BOC markets bonds

Shanghai-based Bank of Communications set out on Monday for a roadshow to market a dollar-denominated issue of Basel III-compliant additional tier I capital preference shares, a market source said.

Bank of Communications, Bocom International, Deutsche Bank and HSBC are the joint global coordinators and – together with Citic CLSA Securities, CCB International, Goldman Sachs, Citigroup, and JPMorgan – joint lead managers and joint bookrunners for the Regulation S deal.

Bank of Communications is a Shanghai-based financial institution.

Roadshow for AK Bars

Russia-based bank AK Bars is on a roadshow for a possible issue of notes, a market source said.

Credit Suisse and UBS are the bookrunners for the deal.

Other details were not immediately available on Monday.

Cosan sets roadshow

Brazil-based ethanol and sugar company Cosan Overseas will set out on Tuesday for a roadshow to market a dollar-denominated issue of notes, a market source said.

BofA Merrill Lynch, Bradesco BBI, Itau BBA, Morgan Stanley and Santander are the bookrunners for the Rule 144A and Regulation S deal.

The roadshow begins in Boston and will travel to New York and Los Angeles before concluding on July 22 in London.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.