Isbank prices notes; EM spreads narrow; South Korean, Brazilian corporates plan roadshows

By Christine Van Dusen

Atlanta, April 3 - Turkey's Turkiye Is Bankasi AS (Isbank) sold notes on a Wednesday that saw better risk sentiment from emerging markets investors as the flow of negative news from Cyprus slowed down.

And numerous issuers took the opportunity to plan roadshows for new deals. On that list were State Bank of India, Russia's Metalloinvest, South Korea's LG Electronics Inc. (LGE) and Daegu Bank Ltd., Turkey's Akbank TAS and Brazil's Banco Fibra SA and BTG Investments LP.

Trading was fast-paced and spreads were tighter, with the Markit iTraxx SovX CEEME ex-EU index spread moving in 2 basis points to Treasuries plus 210 bps. The corporate index narrowed by 3 bps to 243 bps over Treasuries.

"Very busy day, all told, with above average volumes and interests here," a London-based trader said. "Once again, as usual, there are the typical outperformers and laggards, depending on flows, interests and Street positions."

Perpetual issues continued to perform, with Abu Dhabi Islamic Bank's notes closing at 107 and Dubai Islamic Bank's closing at 102 7/8 after both priced at par.

"Very good flow again today on the perpetuals," the London trader said. "Impressive start to April for these bonds. Dare I say the market would welcome some more paper?"

Meanwhile, investors were selling some Turkish corporate bonds to buy up Turkey's 2041 sovereign bond, "one of the worst performers this year," he said.

And Asian bonds suffered on Wednesday.

"Asian markets continue to be dominated by tensions between North and South Korea, with news that South Korean workers have been banned from accessing a shared industrial zone," an analyst said.

Emirates airline notes active

Trading was active for notes from Emirates Airline, with demand on Wednesday noted for the company's 2025s and 2023s.

"Higher-beta names still hold steady," a trader said. "Decent closing bid to Saudi Electricity Co.'s 2043s. This bond has jumped up nicely to close out at 1011/4, bid side, as loose bonds clear."

Notes from International Petroleum Investment Co. and Abu Dhabi National Energy Co. (TAQA) held steady on Wednesday.

"It felt like some money was being put to work in the Dubai corporate and bank names," the trader said.

Emirates NBD hits fresh high

The recent notes from Emirates NBD - $750 million 4 7/8% notes due 2023 that priced at par - traded at 103 on Wednesday.

"Fresh high for that one," a trader said.

Citigroup, Emirates NBD Capital, HSBC, JPMorgan, Societe Generale CIB and Standard Chartered Bank were the bookrunners for the Regulation S deal.

"Anything with yield on it has had a very good April so far, and it's only been two days," the trader said.

SIB deal on deck

One trader was keeping an eye on the upcoming issue of notes planned by the United Arab Emirates' Sharjah Islamic Bank.

The Sharjah-based lender has mandated Al Hilal Bank, HSBC, Kuwait's Liquidity Management House and Standard Chartered Bank as bookrunners for a dollar-denominated issue of benchmark-sized Islamic bonds.

A roadshow for the Regulation S deal begins Thursday.

"Depending on their needs, they could also quite easily add a long-dated tranche to a plain-vanilla five-year bullet," he said.

Isbank sells bonds

In its new deal, Turkey-based lender Isbank sold $500 million 3¾% notes due Oct. 10, 2018 at 99.323 to yield mid-swaps plus 285 bps, a market source said.

The notes were talked at a spread in the area of 295 bps over mid-swaps.

Barclays, Citigroup, Deutsche Bank, HSBC and JPMorgan were the bookrunners for the Rule 144A and Regulation S deal.

Ukraine, Gazprombank eye deals

In other deal-related news, Ukraine is planning to issue eurobonds sometime during April while Russia-based lender Gazprombank OJSC is looking to issue up to $4 billion of bonds sometime this year.

And State Bank of India has mandated BNP Paribas, Citigroup, Deutsche Bank, HSBC, JPMorgan and SBI Capital Markets to arrange a roadshow for an upcoming issue of dollar notes, a market source said.

The Rule 144A and Regulation S roadshow begins Sunday and will take place in Asia, Europe, the Middle East and the United States.

Metalloinvest plans roadshow

Russia-based mining and metallurgy company Metalloinvest will set out on Friday for a roadshow with Credit Suisse, Deutsche Bank, VTB Capital, Credit Agricole, Sberbank and Societe Generale for a dollar-denominated issue of notes, a market source said.

The Rule 144A and Regulation S deal will be marketed in the United States and Europe.

This news comes on the heels of the company's conference call about results from fiscal 2012, a London analyst said, which were soft but in line with market trends and outperformed peers.

"The company is cautiously optimistic for the year," she said. "We therefore expect that the first half of 2013 will be much stronger than the second half of 2012."

LGE mandates bookrunners

South Korea's LGE has mandated Barclays, BNP Paribas, Citigroup, Credit Suisse, JPMorgan and Morgan Stanley to lead a roadshow starting April 8, a market source said.

The marketing trip will take place in Asia, Europe and the United States.

No other details were immediately available on Wednesday.

LGE is a multinational electronics company based in Seoul, South Korea.

Akbank, Daegu Bank tap leads

Turkey-based lender Akbank has mandated Emirates NBD Capital, HSBC, National Bank of Abu Dhabi and Societe Generale CIB for a roadshow to market a dollar-denominated issue of notes, a market source said.

The Regulation S-only roadshow will begin April 7 and take place in the Middle East and Europe.

And South Korea's Daegu Bank has mandated Credit Agricole, Deutsche Bank and HSBC for a dollar-denominated issue of notes and an accompanying roadshow, a market source said.

The roadshow for the Regulation S deal will take place the week of April 8 in Singapore, Hong Kong and London.

Banco Fibra, BTG roadshows

From Latin America, Brazil's Banco Fibra has mandated Barclays, Itau BBA and Standard Chartered for a roadshow to market a dollar-denominated offering of notes, a market source said.

The Regulation S roadshow will begin April 8 and take place in Switzerland and London.

And Brazil's BTG Investments has mandated BofA Merrill Lynch, BB Securities, Bradesco BBI, BTG Pactual and Citigroup for a roadshow to market five-year dollar-denominated notes.

The marketing trip for the benchmark-sized offering will begin on Thursday in Santiago, then travel to New York, Switzerland and London before concluding on April 10.

BTG Investments is part of Brazil's Banco BTG Pactual, based in Sao Paulo.

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