South Africa issues bonds; IDB talks dollar bonds; Hana Bank sets roadshow; Kowepo firms

By Aleesia Forni

Virginia Beach, Sept. 17 – The Republic of South Africa sold a $500 million offering of five-year bonds on Wednesday, as market activity was mostly quiet due largely to the Federal Open Market Committee’s statement.

The Federal Reserve wrapped up its two-day policy meeting on Wednesday, announcing that it plans to continue its accommodative policies for a “considerable time.”

A market source said there was “not much happening” in early trading ahead of the release of the Federal Open Market Committee’s statement.

Later during the session, spreads seemed to show “little effect” from the release.

Meanwhile, the 6% 30-year bonds from Bahrain were “still doing well” on Wednesday, a trader noted, trading up around ¼ of a point on the day.

In other secondary action, the recently priced 2.625% five-year notes from Korea Western Power (Kowepo) traded around 1 bp better during the session.

In primary happenings, Islamic Development Bank set price talk for a possible five-year dollar deal and Korea’s Hana Bank scheduled a roadshow on Wednesday.

Islamic Development’s deal is a “bit out of the norm for them,” a source said, as this will be the second five-year offering the bank has done this year.

He noted that the bank typically comes to market with a single deal each year.

South Africa new issue

South Africa sold $500 million of 3.9% bonds due 2020 on Wednesday at par, an informed source said.

The notes sold with a spread of 180 basis points over mid-swaps.

BNP Paribas Securities Corp., Standard Chartered Bank and Kuwait Finance House were the bookrunners.

Hana Bank roadshows

Hana Bank plans to kick off a roadshow on Sept. 22 ahead of a possible dollar-denominated offering of subordinated notes, according to a market source.

Barclays, Commerzbank, J.P. Morgan Securities LLC, Societe Generale, Standard Chartered Bank and UBS Securities LLC will arrange the meetings.

A Rule 144A and Regulation S deal is expected to follow the roadshow, subject to market conditions.

The financial services company is based in Seoul.

IDB sets talk

Islamic Development Bank set price talk for a proposed benchmark five-year sukuk in the area of mid-swaps plus 15 bps, 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 company wrapped up its roadshow on Wednesday.

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

Bahrain trades up

Bahrain’s $1.25 billion of 6% 30-year notes traded at 101 bid Wednesday, a trader said.

The issue was quoted at 100¾ bid, 101 offered bid on Tuesday.

The notes (expected ratings: /BBB/BBB) sold at par to yield 6% on Sept. 10, a syndicate source said.

The notes were initially talked at a yield in the low-6% area.

Citigroup, Gulf International Bank, MUFG and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.

Korea Western bonds widen

Korea Western Power’s $300 million of 2.625% five-year notes, which sold at Treasuries plus 92.5 bps on Monday, traded around 1 bp tighter during Wednesday’s session.

The notes were quoted at 91 bps bid.

Barclays, BofA Merrill Lynch and Standard Chartered Bank were the bookrunners.

Korea Western engages in the production and supply of electricity and has headquarters in Seoul.

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