Caixa Economica does deal; Lebanon 'in vogue'; roadshows for Trinidad Cement, Diamond Bank

By Christine Van Dusen

Atlanta, May 6 - Brazil's Caixa Economica Federal priced an issue of notes on Tuesday amid busy and mixed trading for emerging markets assets.

"Busy day, all told, with balanced flows as London returned from the long weekend," a London-based trader said. "The Gulf region is pretty well supported, and those with short duration were a little wrong-footed."

"Saudi Electricity Co. had a decent bid to it, most of the session, especially the 2023s and the long end," he said. "Majid Al Futtaim was marked a little lower. Quite a few Qatar National Bank 2020s went through, and that closes couple wider on the day."

Bonds from Lebanon, he said, were "in vogue" on Tuesday.

Also from the Middle East, Dubai's DP World saw its 2037 bonds trade at 109 7/8, a trader said.

"Popular lately, this one," he said.

And with three weeks until Aldar Properties PJSC's 2014 dollar notes mature, the company's 2018s were still heavy in trading, spotted at 103.

Looking to Latin America, spreads on low-beta credits ended Tuesday about 1 basis point wider after a tighter morning, a New York-based trader said.

Prices for bonds from Venezuela and PDVSA were off by between 25 cents and 75 cents as a result of some profit-taking, with the sovereign's 2027s at 82.15 and the corporate's 2017s at 91, he said.

Bonds from Argentina fared better, he said, trading up between 25 cents and 50 cents.

In deal-related news, Trinidad Cement Ltd. set out on a roadshow and Nigeria's Diamond Bank plc and Investment Corporation of Dubai (ICD) mandated leads for marketing trips of their own.

ICD news moves market

Word that Dubai's ICD had picked leads for a roadshow pushed the recent issue of 4.97% notes due 2019 from Dubai-based Damac Real Estate Development Ltd. lower, a trader said.

ICD has mandated Citigroup, Dubai Islamic Bank, Emirates NBD, HSBC and Standard Chartered Bank to lead a roadshow for a possible issue of dollar-denominated notes, he said.

The roadshow for a Regulation S deal will begin on Thursday.

Emerging Europe mixed

Trading of bonds from Central and emerging Europe has been mixed so far this week, according to a report from Erste Group Research.

Bonds from Hungary have widened while shorter-duration bonds from Czech Republic and Romania strengthened.

But overall, trading has been thin, given the holiday in the United Kingdom.

"In Ukraine, the situation remains highly unstable, where pro-Russian separatists are reported to have shot down a Ukrainian military helicopter," the report said. "Ukrainian [credit default swaps are] continuing to trade at a near-high for the last months."

Russian bonds 'neutral'

Bonds from Russia showed "neutral dynamics" on Tuesday, according to a report from UFS Investment Co.

"On Monday, the activity in the eurobond market was below average due to a national holiday in the UK," the report said.

The yields of Russia's 2023s and 2043s slightly increased during that session.

"In the course of trading on Tuesday we expect the dynamics [to be] close to neutral in the absence of a sudden resumption of hostilities in Ukraine," the report said.

Caixa sells notes

In its new deal, Brazil-based lender Caixa Economica Federal priced a $1.3 billion issue of 4¼% notes due May 13, 2019 at 99.648 to yield Treasuries plus 265 bps, a syndicate source said.

The notes priced tighter than talk, set in the 285 bps area.

BB Securities, BofA Merrill Lynch, Bradesco BBI, BTG Pactual, Itau BBA and JPMorgan were the bookrunners for the Rule 144A and Regulation S deal.

Trinidad Cement on roadshow

Trinidad Cement set out on Tuesday for a roadshow to market up to $300 million of notes due in 2021, a market source said.

Proceeds from the Rule 144A and Regulation S transaction will be used to repay all outstanding borrowings and for general corporate purposes.

The roadshow began Tuesday in New York and will travel to Boston and Toronto before concluding early next week in the Midwest and California.

The issuer produces cement and read-mix products in the Caribbean.

Diamond Bank sets roadshow

Nigeria's Diamond Bank has mandated Citigroup as bookrunner for a possible dollar-denominated issue of notes that will be marketed during a roadshow this week, according to a company announcement.

The roadshow will begin on Wednesday.

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

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