China's Maoye prints notes; investor sentiment improves; Trinidad Cement, others on deck

By Christine Van Dusen

Atlanta, May 13 - China's Maoye International Holdings Ltd. sold bonds on Tuesday as emerging markets bonds rallied on the latest headlines out of Russia and Ukraine.

After Donetsk separatists announced their intention to join Russia, sovereign credit default swaps tightened 7 basis points and sovereign cash bonds narrowed by 5 bps, a London-based analyst said.

"Russia's reaction has so far been fairly measured, calling for dialogue and no further violence," she said. "The market is rallying this morning on the back of the Kremlin's comments. Corporates are also performing well."

Sentiment also got a boost on Tuesday from the news that the United States and European Union are "playing down the prospect of entire industry sanctions due to concerns of retaliation," she said. "The risk-on mood is helping other parts of [emerging markets], including Turkey."

Against this backdrop, China-based department store Maoye sold $300 million 7¾% notes due May 19, 2017 at par to yield 7¾%, according to a company filing.

Citigroup, CLSA, Deutsche Bank and Morgan Stanley were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used to refinance indebtedness and for general corporate purposes.

In other deal-related news, Montenegro launched a €280 million issue of five-year notes at 5½%, following final talk in the 5 5/8% area, a market source said.

Also on Tuesday, price guidance was issued for deals from Investment Corp. of Dubai, Trinidad Cement Ltd. and Nigeria's Diamond Bank plc. And China's Shanghai Pudong Development Bank Co. Ltd. set a roadshow, while Tunisia made plans to print dollar notes in June.

Montenegro launches

Talk for Montenegro's deal was initially set at a minimum of 5½%, then revised to the high-5% area.

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

The notes are being offered in conjunction with an exchange and tender offer for Montenegro's existing 2015 and 2016 notes.

ICD gives guidance

Investment Corp. of Dubai set talk for a two-tranche issue of dollar-denominated notes due in six and 10 years, a market source said.

The six-year Islamic bonds were talked at a spread in the mid-swaps plus 175 bps area. The bookrunners are Citigroup, Dubai Islamic Bank, Emirates NBD, HSBC and Standard Chartered Bank.

The 10-year conventional bonds were talked at a spread in the mid-swaps plus low-200 bps area. Citigroup, Emirates NBD, HSBC and Standard Chartered Bank are the bookrunners.

Pricing is expected to take place as soon as Wednesday.

Trinidad Cement sets talk

Trinidad Cement set price guidance in the 9½% area for its upcoming issue of $325 million-equivalent notes due in seven years, a market source said.

The deal will include $300 million of notes and a Trinidad and Tobago dollar-denominated tranche worth $25 million.

GMP Securities, Jamaica Money Market Brokers and Byron Capital Markets are the bookrunners for the Rule 144A and Regulation S deal.

The notes will be non-callable for four years and include a change-of-control put at 101 and an equity clawback of 35%.

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

The notes are expected to price toward the end of this week.

Guidance from Diamond Bank

Nigeria's Diamond Bank set talk in the high-8% to 9% area for its upcoming issue of dollar-denominated notes due in five years, a market source said.

Citigroup is the bookrunner for the Rule 144A and Regulation S deal, which is expected to price as early as Wednesday.

Roadshow for Shanghai bank

China's Shanghai Pudong Development Bank has mandated HSBC, Standard Chartered Bank, Bank of China, Citigroup, HSBC and Shanghai Pudong Development Bank as bookrunners for a roadshow starting Wednesday, a market source said.

A renminbi-denominated issue of Regulation S notes is expected to follow.

Tunisia sets timing

Tunisia will print its $500 million issue of U.S.-backed bonds in June, a market source said.

This is the second sovereign loan guarantee provided to Tunisia by the United States, following a $485 million loan guarantee in 2012.

Tunisia may also issue up to $400 million of bonds backed by Japan in September.

Bank of China draws orders

The final book for Bank of China Ltd.'s new RMB 1.5 billion 3½% notes due May 15, 2017 was more than RMB 3 billion, a market source said.

The notes priced at par to yield 3½% via Bank of China, Credit Suisse, Deutsche Bank and ING in a Regulation S deal, part of the company's $10 billion notes program.

The proceeds will be used for general corporate purposes.

Persero oversubscribed

Indonesia-based PT Perusahaan Gas Negara Tbk's (Persero) new issue of $1.35 billion 5 1/8% notes due May 16, 2024 drew an order book of $6.55 billion from 311 accounts, a market source said.

The notes came to the market at 99.037 to yield 5¼%, or Treasuries plus 259.4 bps.

About 49% of the orders came from the United States, 35% from Asia and 16% from Europe.

Fund managers picked up 70%, banks and insurers 21%, agencies 6% and private banks and others 3%.

ANZ Banking Group, JPMorgan and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.

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