Swiber does deal; Arcelik sets talk; corporates line up roadshows; Russia, Ukraine in focus

By Christine Van Dusen

Atlanta, Sept. 8 – Singapore’s Swiber Holdings Ltd. sold notes on Monday as investors continued to eye the conflict in Ukraine and the possibility of further sanctions against Russia from the European Union.

“The ceasefire in Ukraine saw violations over the weekend, but is still officially holding,” a London-based trader said.

Russian bonds opened mostly unchanged on Monday, following some late-afternoon weakness on Friday, he said.

Week over week, Russia’s bonds moved higher, with the 3 5/8% notes due 2015 trading Monday at 101.38 bid, 101.88 offered after last week’s 101.19 bid, 101.59 offered.

The sovereign’s 3¼% 2017 notes were seen Monday at 102¼ bid, 102¾ offered after trading the previous week at 101.38 bid, 101.88 offered.

And the 5 7/8% 2043s – seen last week at 98¾ bid, 99¾ offered – traded Monday morning at 102 bid, 103 offered.

“The EU agreed on further sanctions on Friday, which may be implemented today or tomorrow, although if the EU feels confident enough that the ceasefire will be held, the sanctions may not be introduced.”

The proposed sanctions focus on state-owned oil companies and bar them from issuing debt into Europe, he said.

“We do not feel that these sanctions will have a materially negative effect on the corporates and banks,” he said.

Still, bonds from Russia’s Sibneft OJSC dipped about a point on Monday morning.

Elsewhere in emerging markets, bonds from Africa and Turkish banks were strong performers during the early session, he said.

“We imagine Turkish banks will want to come to the market in the short-term, given where spreads are,” he said.

Steady trading for Gulf region

From the Middle East, trading was steady but volumes were light, a London-based trader said.

“The supply on [Kuwait-based] Burgan Bank’s 2020s appears to have cleared and been soaked up, as the bond has bounced back a point ahead of their expected perpetual issue,” he said. “Also saw some buying of the long end, with some stability on rates, post-Friday’s non-farm payrolls numbers.”

Bonds from Abu Dhabi were trading well while Kuwait Projects Co.’s 2020s changed hands near 127, he said.

“For perpetuals there is still a slight overhang of supply from last week’s selling,” he said.

Lat-Am volumes ‘decent’

Looking to Latin America, client activity was somewhat subdued on Monday, though volumes were “decent,” a New York-based trader said.

Bonds from Brazil’s Petroleo Brasileiro SA (Petrobras) underperformed, widening between 3 basis points and 5 bps on Monday, he said, and Brazil-based Vale SA’s notes moved out too.

The new two-tranche issue of notes due in 2022 and 2025 from Mexico-based Cemex SAB de CV was a bit heavy in trading on Monday, he said. And the existing curve weakened.

Swiber sells notes

In its new deal, Singapore’s Swiber Holdings priced RMB 450 million 7¾% notes due Sept. 18, 2017 at par to yield 7¾%, a market source said.

ANZ, DBS, HSBC and ICBC Singapore were the bookrunners for the Regulation S deal.

Swiber is a Singapore-based offshore oil and gas company.

Arcelik gives guidance

Turkey’s Arcelik AS set initial talk in the 4 1/8% area for its upcoming issue of euro-denominated notes due in seven years, a market source said.

BNP Paribas, Citigroup and HSBC are the bookrunners for the Regulation S deal, which could price as soon as Tuesday.

Arcelik is a household appliances manufacturer based in Sutluce, Turkey.

Mitra sets marketing trip

Indonesia’s PT Mitra Pinasthika Mustika Tbk has mandated Deutsche Bank to lead a roadshow to market a Regulation S issue of dollar notes, a market source said.

The roadshow starts Tuesday and will travel to Singapore, Hong Kong and London.

The issuer is an automotive company based in Jakarta.

Cagamas to market notes

Malaysia’s Cagamas Bhd. will depart on Sept. 10 for a roadshow to market a renminbi-denominated issue of notes, a market source said.

Bank of China, HSBC and Maybank are the bookrunners for the Regulation S deal.

The roadshow starts in Hong Kong and will end on Sept. 11 in Singapore.

Cagamas is a mortgage company based in Kuala Lumpur.

Roadshow for IDB

Islamic Development Bank will set out on Sept. 11 for a roadshow to market a dollar-denominated issue of Islamic bonds, a market source said.

CIMB, Deutsche Bank, First Gulf Bank, GIB Capital, HSBC, Maybank, Natixis, National Bank of Abu Dhabi and Standard Chartered Bank are the bookrunners for the Regulation S sukuk.

The investor meetings will begin in Kuala Lumpur and travel to Abu Dhabi, Scandinavia, Germany and Switzerland before concluding on Sept. 17 in London.

The issuer is a Jeddah, Saudi Arabia-based lender.

Pemex prints add-on

On Friday, Mexico’s Petroleos Mexicanos SAB de CV (Pemex) priced Ps. 3.4182 billion 7.19% notes due Sept. 12, 2024 at 102.821247 to yield 6.8%, a market source said.

BBVA, Citigroup, HSBC, BofA Merrill Lynch and Morgan Stanley were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used for general corporate purposes.

The existing size of the deal is Ps. 26.4 billion.

Pemex is a Mexico City-based petrochemical company.

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