New issues from Televisa, Kexim, I.T, CMPC; sellers for Croatia, Romania; TAQA lags

By Christine Van Dusen

Atlanta, May 8 - Mexico's Grupo Televisa SAB, Korea Export-Import Bank (Kexim), China's I.T Ltd. and Chile's Empresas CMPC SA sold notes on a Wednesday that traders described as "fairly busy," with mixed spreads and selling seen for bonds from Croatia and Romania.

The Markit iTraxx SovX CEEME ex-EU index spread on Wednesday narrowed 3 basis points from Tuesday to 175 bps over Treasuries. The corporate index spread - seen Tuesday at 216 bps over Treasuries - widened to 210 bps.

"Perpetuals ticked up as the day went on," a London-based trader said. "Dubai Islamic Bank was last trading at 103 and Abu Dhabi Islamic Bank was last printing at 1061/4."

Both recently priced at par.

"Emirates' 2025s have a good battle going on, with fair size and interest clearing around the 99 level," he said. "This was exactly where I traded these bonds in decent size on April 3."

And Abu Dhabi National Energy Co.'s (TAQA) 2021s and 2023s were underperforming versus peers, particularly Dolphin Energy's 2021s.

"Further nibbling of Dubai corporates throughout the session," he said.

Said a London-based analyst, "We have seen some Street selling of front-dated Qatari bonds after a very good run. Bahrain is trading well."

The new issues of notes from Slovenia opened flat, while banking bonds from Turkey were well-bid, the analyst said.

In the Russian corporate sector, buyers were seen for Evraz Group's 2020s, Credit Bank of Moscow's 2018s, Vimpelcom's 2018s and Gazprom's euro notes, she said.

"Also seeing some small selling of Polyus Gold," she said.

In deal-related news, Costa Rica's Instituto Costarricence de Electricidad (ICE) set price talk, State Grid Corp. of China was on a roadshow, Hong Kong Exchanges and Clearing Ltd. picked bookrunners, and First Bank of Nigeria plc is planning to issue notes.

Batelco performs

The recent 4¼% notes that Bahrain Telecommunications Co. BSC (Batelco) priced at 99.45 to yield 4.342% traded well on Wednesday.

The notes were sighted between 100.60 and 100.80, a trader said.

BNP Paribas and Citigroup were the bookrunners for the Regulation S-only deal.

"Fairly busy start in the Middle East and North Africa, with good interest across the board," the analyst said.

CMPC sells notes

Chile's Empresas CMPC priced $500 million 4 3/8% notes due 2023 at 99.248 to yield Treasuries plus 270 bps, a market source said.

The notes priced tighter than talk, initially set in the 190 bps area.

Deutsche Bank and JPMorgan were the bookrunners for the Rule 144A and Regulation S deal.

Empresas CMPC is a Santiago, Chile-based pulp and paper company.

Televisa prices bonds

In its new deal, Mexico-based mass media company Grupo Televisa priced a Ps 6.5 billion issue of 7¼% notes due 2043 at 99.733 to yield 7.27%, or Treasuries plus 185 bps.

Citigroup, Deutsche Bank, HSBC and Morgan Stanley were the bookrunners for the Securities and Exchange Commission-registered deal.

The proceeds will be used for general corporate purposes.

Kexim, I.T print notes

Korea's Kexim priced a €250 million tap of its 2% notes due 2020 at 99.89 via Deutsche Bank in a Regulation S deal, a market source said.

The original €750 million issue of 2% notes due 2020 priced in April at 99.774.

And China-based retail investment holding company I.T sold RMB 1 billion 6¼% notes due 2018 at par to yield 6¼% with HSBC and Standard Chartered Bank in a Regulation S deal.

The proceeds will be used for general corporate purposes.

"Dare I say the market would welcome some more supply?" the London trader said.

ICE sets talk

Also on Wednesday, ICE, Costa Rica's government-run electricity and telecommunications services provider, set price talk in the 6½% to 6 5/8% area for a $500 million issue of 30-year notes, a market source said.

Citigroup and Deutsche Bank are the bookrunners for the Rule 144A and Regulation S deal.

And First Bank of Nigeria announced plans to issue $500 million in bonds this year.

Roadshows for Chinese issuers

China's State Grid is on a roadshow with HSBC, Goldman Sachs, Morgan Stanley, BOC International, ICBC International, JPMorgan, Citigroup, Deutsche Bank and UBS for a dollar-denominated issue of notes.

The roadshow began Wednesday and will be held in Asia, Europe and the United States.

A Rule 144A and Regulation S deal is expected to follow.

And Hong Kong Exchanges and Clearing has tapped Deutsche Bank, HSBC and UBS for a roadshow in Hong Kong, London and Singapore that begins Thursday.

Hong Kong Exchanges and Clearing is the holding company for the Stock Exchange of Hong Kong Limited (SEHK), Hong Kong Futures Exchange Limited (HKFE) and Hong Kong Securities Clearing Company Ltd.

Yuexiu oversubscribed

The final book for China-based developer Yuexiu Property Co. Ltd.'s new $350 million issue of 3.1% notes due 2018 was $2 billion from 130 accounts, a market source said.

The notes priced at 99.541 to yield 3.2%, or Treasuries plus 245 bps, with Bank of China, DBS, HSBC and Morgan Stanley in a Regulation S deal.

About 83% of the orders came from Asia, and 17% from Europe.

Fund and asset managers accounted for 69%, insurance 10%, banks 13% and private banks 8%.

Harvest attracts orders

Also oversubscribed were Harvest Operations Corp.'s $630 million 2 1/8% notes due 2018 that priced at 99.637 to yield Treasuries plus 145 bps.

The deal drew $3.75 billion in orders from more than 185 accounts, with 45% from Asia, 35% from the United States and 20% from the European Union.

Fund and asset managers picked up 76%, banks 8%, official institutions 7%, insurance 6% and private banks and others 3%.

BofA Merrill Lynch, Barclays, HSBC and RBS were the bookrunners for the Rule 144A and Regulation S deal.

Harvest is a wholly owned subsidiary of Korea National Oil, an oil and gas production and exploration company based in Anyang, South Korea.

Hutchison Whampoa popular

Investors were drawn to the new deal from China's Hutchison Whampoa Europe Finance (12) Ltd., which priced €1.75 billion 3¾% perpetual notes at par to yield 3¾%, or mid-swaps plus 294.1 bps.

The final book was €6.5 billion, with 28% of the orders from the United Kingdom and Ireland, 28% from Germany and Austria, 13% from Benelux nations, 9% from Switzerland, 9% from France, 5% from Scandinavia, 4% from Italy, 3% from Asia and 1% from others.

About 77% of the orders came from fund managers, 11% from insurance and pension funds, 1% from banks and private banks, 1% from hedge funds and 1% from others.

BofA Merrill Lynch, Goldman Sachs and HSBC were the bookrunners for the Regulation S deal.

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