Investors chew on Saudi Arabia mega-deal; Russian lenders set roadshows; Dehli Airport eyed

By Christine Van Dusen

Atlanta, Oct. 21 – Emerging markets investors continued to digest the $17.5 billion issue of notes from Saudi Arabia on a Friday that saw two Russian banks set roadshows for upcoming deals.

In trading during the session, bonds from Indonesia traded higher after the central bank lowered the seven-day reverse repurchase rate, its sixth reduction this year, designed to buoy the economy, according to a report from Schildershoven Finance BV.

“The bank also signaled that it is not done with cutting interest rates yet, as the economy expansion will probably be at the lowest end of the forecast range of 4.9% to 5.3% this year,” the report said.

In other trading, the new issue from Turkey’s Turkiye Vakiflar Bankasi TAO (Vakifbank) – $500 million 5½% notes due 2021 that priced Thursday at 99.509 – saw some activity.

The notes were spotted at 99.51 bid, 99.61 offered, a trader said.

Societe Generale was the bookrunner for the Rule 144A and Regulation S deal.

This followed the news that Turkey's central bank was holding interest rates.

“We assess Turkey’s central bank decision as negative for the bond market, as on the one hand it showed a great role of Turkish government in bank’s policymaking, and on the other hand it disappointed some investors who had predicted further policy easing,” Schildershoven said.

In deal-related news, Russia's Credit Bank of Moscow will hold a roadshow from Oct. 24 to Oct. 26 for a dollar-denominated offering of five-year notes, a market source said.

And Russia's OJSC Alfa Bank will market a dollar-denominated offering of perpetual notes during a roadshow on Oct. 24 and Oct. 25, a market source said.

UBS is the bookrunner for the deal.

Delhi Airport draws orders

The final order book for India-based Delhi International Airport Pvt Ltd.'s new $522.6 million 6 1/8% notes due 2026 was $3.4 billion from 220 participants, according to an informed source.

The notes priced on Thursday at par to yield 6 1/8%, following talk in the 6¼% area.

About 41% of the orders went to the United States, 37% to Asia, 17% to Europe and 5% to the Middle East. Asset managers picked up 83%, private banks 15% and other banks 2%.

Citigroup, Standard Chartered Bank, Axis Bank, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan and MUFG were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used for refinancing purposes.

Enersis sells bonds

On Thursday, Chile’s Enersis Americas SA priced $600 million 4% 10-year notes at 98.364 to yield 4.202%, or Treasuries plus 245 basis points, according to a company filing.

BBVA, Citigroup, JPMorgan, Morgan Stanley and Santander were the bookrunners for the Securities and Exchange Commission-registered deal.

The proceeds will be use for repayment of the company’s 7.4% notes due Dec. 1, 2016 and its associated derivatives, to repurchase common stock as part of the overall reorganization of the company's businesses in Latin America and for general corporate purposes.

Enersis holds direct and indirect participation in the electric power generation, transmission and distribution businesses. It holds a 60% interest in Endesa Chile, an electricity generation company. Both are based in Santiago, Chile.

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