Afreximbank, QNB, HSBC Singapore, CEZ, Ceska price bonds; long-dated assets under pressure

By Christine Van Dusen

Atlanta, May 28 - African Export-Import Bank, Qatar National Bank SAQ, HSBC Singapore and two issuers from the Czech Republic - CEZ Group and Ceska Exportni Banka AS - sold notes on Tuesday as buyers outnumbered sellers of emerging markets assets.

"Further pressure on the US Treasury market today saw long-dated assets under pressure," a London-based trader said. "While there are plenty of bonds holding in and trading well, there are enough that are very well offered. It's logical that short-dated bonds and well-held, older bonds are virtually unchanged in price."

The 2041 notes from International Petroleum Investment Co. and the 2042s from Qatar were among those that were dropped in trading.

"And Qtel International, as well as Dubai's 2043s and perpetuals, were offered and heavy," he said. "But there are a lot of pent-up retail investor buy orders on the recent Emirates NBD perpetual that was last down at 97½ and also on Emirates' 2023s and 2025s."

The recent 2023 notes from Abu Dhabi Commercial Bank saw only sellers, he said, and closed with a 97 handle.

The notes had priced at 99.757 to yield 3 1/8%, or mid-swaps plus 220 basis points, via Standard Chartered Bank in a Regulation S-only deal.

In its new deal, Cairo-based African Export-Import Bank sold $500 million 3 7/8% notes due 2018 at 99.282 to yield mid-swaps plus 287.5 bps with HSBC, Commerzbank, Mitsubishi UFJ Securities and Standard Bank in a Regulation S deal.

The notes opened in trading at 99.15 bid, 99.35 offered, then moved to 99.20 bid, 99.45 offered.

Afreximbank notes active

Later in the session, the new African Export-Import Bank notes were seen at 99¼ bid, 99½ offered before moving to 99.28 bid, 99.48 offered.

Near the European close, the notes were quoted at 99.282 bid, 99.482 offered.

Meanwhile, the company's existing 2014s traded at 108½ bid, 109½ offered, while its 2016s were quoted at 107.62 bid, 108.37 offered.

Ukraine bonds tick down

From Ukraine, the sovereign's 2023s have dipped about a point in trading, said Svitlana Rusakova of Dragon Capital.

"Bids were there and not getting hit, but there definitely seems to be more sellers at the moment," she said. "We continued to see bottom-fishing demand for value names."

She pointed to Mriya Agro Holdings and State Administration of Railways Transport of Ukraine (Ukrzaliznytsia).

CEZ prints notes

In another new deal, Czech Republic-based conglomerate CEZ Group sold €500 million 3% notes due 2028 at 98.815 to yield mid-swaps plus 168 bps, a market source said.

Commerzbank, Deutsche Bank and Erste Group were the bookrunners for the deal.

CEZ Group is a subsidiary of CEZ AS, a Prague-based conglomerate focused on electricity, trade and coal mining.

Ceska does deal

Also from the Czech Republic, Ceska Exportni Banka priced a €250 million issue of notes due 2016 at par to yield Euribor plus 35 bps, a market source said.

The notes priced at the tight end of talk, set at 35 bps to 40 bps over Euribor.

CSOB (KBC) and JPMorgan were the bookrunners for the deal.

Ceska is an export bank based in Prague.

New issues from bank names

Qatar National Bank, through QNB Finance Ltd., priced a CHF 200 million issue of ½% notes due 2016 at 100.510 to yield mid-swaps plus 35 bps with Deutsche Bank and QNB Capital in a Regulation S deal.

And HSBC Singapore sold RMB 500 million 2¼% notes due 2015 at par to yield 2¼% via HSBC as bookrunner for the Regulation S deal.

The proceeds will be used for general corporate purposes.

Ziraat, DBS deals ahead

Turkey-based lender Turkiye Cumhuriyeti Ziraat Bankasy AS (Ziraat Bank) has mandated BofA Merrill Lynch, Citigroup, Deutsche Bank, HSBC and JPMorgan for its dollar-denominated issue of notes, a market source said.

Singapore-based DBS Bank Ltd. is planning to issue renminbi-denominated notes.

No other details were immediately available on Tuesday.

IDB gives guidance

Saudi Arabia-based Islamic Development Bank set talk in the mid-swaps plus high-30 bps area for its dollar-denominated issue of benchmark-sized Islamic bonds due in five years, a market source said.

Standard Chartered Bank, Barwa Bank, Credit Agricole, CIMB, National Bank of Abu Dhabi, Natixis, NCB Capital and RBS are the bookrunners for the Regulation S deal.

The notes are expected to price on Wednesday.

Uni-President on road

Uni-President China Holdings Ltd. is on a roadshow to market an issue of renminbi-denominated notes, a market source said.

ANZ, DBS Bank, BofA Merrill Lynch and Mizuho Securities are the bookrunners for the Regulation S deal.

The roadshow began on Tuesday.

Uni-President is a Shanghai-based juice drinks and instant noodles company.

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