Primary market sees deal from QNB; Petrobras sees support; Turkey widens; Emaar on deck

By Christine Van Dusen

Atlanta, Aug. 31 – Qatar National Bank SAQ sold notes on a Wednesday that saw support for Brazil-based Petroleo Brasileiro SA’s bonds and negative dynamics for notes from Asia.

Petrobras sold an oilfield for $2.5 billion, which was seen as a good move for the company.

“This field needs to be highly invested, and Petrobras didn’t have sufficient resources to develop this asset,” according to a report from Schildershoven Finance BV. “This announcement supported Petrobras bonds, as it looks like the company will succeed in its assets divestment program.”

From Asia, dollar sovereign bonds struggled on Wednesday.

“Negative dynamics,” the report said. “Indonesian and Malaysian 10-year bonds are lower by 12 basis points and 10 bps, respectively.”

In other trading, the bond curve for Turkey moved 4 bps to 5 bps wider, a trader said.

Meanwhile, bonds from London-based but Russia- and Kazakhstan-focused Polyus Gold International Ltd. released improved operating results that affected dollar bond yields, Schildershoven said.

But, “given currently stable markets, we would prefer slightly more risky trades in bonds of high yield Australian and Indian miners, [which offer] attractive yields,” the report said.

Looking to the new issue calendar, investors were pleased to see some activity on Wednesday.

“There are first signs of life and activity in the [emerging markets] primary market again,” a London-based analyst said. “It’s mainly the sovereigns that have been in the media’s and investors’ focus as we await potential deals from Bahrain, Kuwait and Saudi Arabia.”

In its new deal, Qatar National Bank – via QNB Finance Ltd. – priced a $1 billion issue of 2 1/8% notes due Sept. 7, 2021 at 99.930 to yield 2.353%, or mid-swaps plus 115 bps, a market source said.

Barclays, HSBC, Mizuho, MUFG, QNB Capital and Standard Chartered Bank are the bookrunners for the Regulation S deal.

Slovenia launches tap

Slovenia launched a €1 billion tap of its 1˝% notes due in March of 2035 at mid-swaps plus 98 bps, a market source said.

Barclays Bank, Deutsche Bank, Goldman Sachs and JPMorgan are the bookrunners for the Regulation S deal.

The sovereign previously announced plans to issue euro-denominated notes as part of a tender offer.

Emaar sets roadshow

Dubai-based property developer Emaar Properties will set out on Sept. 4 for a roadshow to market a dollar-denominated issue of Islamic bonds, a market source said.

Standard Chartered, Emirates NBD, National Bank of Abu Dhabi, First Gulf Bank, Dubai Islamic Bank PJSC, Union National Bank, Mashreqbank, Noor Bank and Bank ABC are the bookrunners for the Regulation S deal.

Road King does deal

On Tuesday, China’s Road King Infrastructure Ltd. – via subsidiary RKI Overseas 2016 Finance (B) Ltd. – priced $500 million 4.7% notes due Sept. 6, 2021 (B1/B-/) at par to yield 4.7%, according to a company filing.

The joint bookrunners and joint lead managers for the Regulation S deal were HSBC, DBS Bank and JPMorgan.

The proceeds will be used for refinancing existing debt, including the company’s $350 million of 9 7/8% guaranteed senior notes due 2017 issued by Road King Infrastructure Finance (2012) Ltd.

Road King is a Hong Kong-based toll road and property company.

© 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.