Issuance from Greenland China, Hang Seng Bank, Pakuwon; up and down day for EM trading

By Christine Van Dusen

Atlanta, June 25 – China’s Greenland Holding Group Co. Ltd., China’s Hang Seng Bank (China) Ltd. and Indonesia’s PT Pakuwon Jati Tbk priced new deals on a Wednesday as trading picked up, then sputtered, then improved again.

“The day went in fits and starts, really,” a London-based trader said.

Investors took a defensive posture in the morning on the news that the cease-fire in Ukraine may not hold, as well as worries that the United States could institute more sanctions against Russia.

“At the open, Russia was about 5 basis points wider,” a London-based analyst said.

In other trading, the new issue from Turkey’s Albaraka Turk Katilim Bankasi AS – $350 million 6¼% notes due June 30, 2019 that priced at par – moved down about 0.3 points on Wednesday, she said.

The new issue from Abu Dhabi-based Al Hilal Bank fared better. The 5½% perpetual notes that priced at par moved up about 0.4 points on Wednesday.

“Very active, then a midday lull, then a little more action as we head into the close,” the London trader said.

Front-dated bonds from names in Qatar and Abu Dhabi remained popular, he said, as did International Petroleum Investment Co.’s notes.

“Liquidity is starting to get a little tricky,” he said. “Generally the market was supported today.”

The day’s laggards were bonds from Kuwait, he said.

In deal-related news, China City Construction (International) Co. Ltd. set talk, Chile’s Colbun SA planned a roadshow, and Bulgaria picked bookrunners.

Greenland China prints bonds

In its new deal, Shanghai real estate and operation services company Greenland Holding Group priced a $1 billion two-tranche issue of notes due July 3, 2019 and 2024, a market source said.

The $400 million 4 3/8% five-year notes priced at 99.53 to yield Treasuries plus 285 bps, matching talk.

The $600 million 5 7/8% notes due 2024 priced at 99.441 to yield 5.95%, matching talk.

BOC International, HSBC, JPMorgan and Deutsche Bank were the bookrunners for the Regulation S deal.

The notes were issued by wholly owned subsidiary Greenland Global Investment Ltd. and guaranteed by the company.

Hang Seng prices notes

China’s Hang Seng Bank priced RMB 1 billion 3¼% notes due July 3, 2017 at par to yield 3¼%, a market source said.

HSBC was the bookrunner for the Regulation S deal.

Hang Seng is a Hong Kong-based commercial and investment bank.

Pakuwon sells bonds

Indonesia-based real estate developer and manager Pakuwon Jati – through Pakuwon Prima Pte. Ltd. – sold $168 million 7 1/8% notes due July 2, 2019 at par to yield 7 1/8%, a market source said.

Standard Chartered Bank and UBS were the bookrunners for the Regulation S deal. PT Mandiri Sekuritas was a co-manager.

The proceeds will be used for debt refinancing, acquisition transactions and working capital purposes.

Talk from Chinese corporate

Beijing’s China City Construction set talk in the 5½% area for a renminbi-denominated issue of benchmark-sized notes due in three years, a market source said.

BNP Paribas, BofA Merrill Lynch and BOC International are the bookrunners for the Regulation S deal.

Roadshow for Colbun

Chile-based utility company Colbun will set out on June 30 for a roadshow to market a dollar-denominated issue of notes, a market source said.

Citigroup, JPMorgan and Scotiabank Capital are the bookrunners for the Rule 144A and Regulation S deal.

The roadshow will start in New York, Los Angeles and London and conclude on July 1 in New York, Chicago and Boston.

In August of 2013 the company postponed a dollar-denominated issue of notes.

Bulgaria on deck

Bulgaria has mandated Citigroup, HSBC and JPMorgan as bookrunners for its euro-denominated issue of benchmark-sized notes due in September of 2024, a market source said.

The Regulation S deal is expected to price on Thursday.

Hua Xia draws orders

The final book for China-based Hua Xia Bank’s new RMB 1 billion 4.95% notes due June 30, 2017 was RMB 4.5 billion, a market source said.

The notes priced Tuesday at par to yield 4.95%, following talk in the 5¼% area, with Deutsche Bank in a Regulation S deal.

The proceeds will be used to refinance existing indebtedness, optimize the structure of the balance sheet and support the development of business and operations.

The lender is based in Beijing.

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