Islamic Development Bank, Chong Hing price as tone improves; Kowepo bonds trade better

By Aleesia Forni

Virginia Beach, Sept. 18 – Islamic Development Bank and Chong Hing Bank Ltd. issued new bonds during a stronger session for emerging markets.

The tone was decidedly more positive on Thursday following the release of the Federal Open Market Committee’s statement on Wednesday.

Islamic Development Bank came to primary market with a $1.5 billion five-year sukuk during the session.

The Regulation S-only issue priced at the tight end of price talk, a market source said.

The primary market also hosted Chong Hing Bank, which priced $300 million of perpetual bonds on Thursday.

In forward calendar news, Tianneng Power International Ltd. announced that wholly owned subsidiary Tianneng Battery Group is in talks to price a renminbi-denominated bond offering.

In the secondary market, the recently priced 2.625% five-year notes from Korea Western Power (Kowepo) traded about 2 basis points on the day, a trader said.

The notes were quoted at 89 bps bid, 97 bps offered.

Islamic Development prices tight

Islamic Development Bank priced a $1.5 billion 2.11% five-year sukuk (Aaa/AAA/AAA) at par to yield mid-swaps plus 10 bps on Thursday, a market source said.

The notes sold at the tight end of the mid-swaps plus 15 bps area talk.

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 deal.

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

Chong Hing perpetuals

Chong Hing Bank priced $300 million of 6½% perpetual bonds at par on Thursday, an informed source said.

The notes are non-callable for five years.

The bookrunners were Credit Suisse Securities, HSBC Securities, Nomura Securities and UBS Securities LLC.

Chong Hing is a Hong Kong-based lender.

Tianneng eyeing renminbi bonds

Tianneng Power International announced that wholly owned subsidiary Tianneng Battery Group plans to issue RMB 400 million of corporate bonds.

The six-year bonds will be offered to institutional investors in China.

The bonds will have a fixed coupon for the first three years. After that, the issuer has the option to increase the coupon by up to 100 basis points.

New Times Securities Co. Ltd. will be the underwriter.

This is Tianneng Battery’s second tranche of corporate bonds. The subsidiary has been approved to issue a total of RMB 800 million of corporate bonds in multiple tranches. As previously reported, the company sold RMB 400 million of five-year bonds with an initial coupon of 7.31% in March.

Proceeds from Tianneng Battery’s second tranche of corporate bonds will be used for investments in business projects, including newly developed batteries production capacity expansion and recycled lead production capacity expansion.

Pengyuan Credit Rating Co., Ltd. has rated the corporate bonds AA+.

The Hong Kong-based company makes battery products for electric vehicles.

Koewpo firms

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, South Korea.

Marisa Wong contributed to this review.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.