Paraguay taps EM primary market for $560 million; BankMuscat sells $500 million notes

By Paul A. Harris

Portland, Ore., March 8 – The emerging markets primary saw new supply on Thursday from the Republic of Paraguay and BankMuscat amid a recent steady flow of new deals.

Paraguay priced $560 million of 5.6% 30-year sovereign paper.

And Oman-based BankMuscat priced $500 million of 4 7/8% five-year notes at 99.2 to yield 5.058%, or mid-swaps plus 230 basis points.

The secondary market was described by a trader as flat to slightly positive as the London business day was coming to a close.

Ongoing strength in new issuance is viewed as having generally hampered the secondary market, the source said.

“Any big orders move the needle,” the source said regarding the secondary market.

Senegal was softer in secondary trading after the sovereign priced €1 billion 10-year notes and $1 billion 30-year notes on Tuesday.

Paraguay prices

Paraguay priced $560 million of 30-year sovereign notes (Ba1/BB/BB) at par to yield 5.6% on Thursday.

The yield came tight to guidance in the high 5% area.

Citigroup and JPMorgan were the joint bookrunners.

ChemChina sells $4.95 billion

China National Chemical Corp. Ltd. (ChemChina) priced $4.95 billion of senior notes in five tranches, adding a 30-year tranche of notes (expected ratings: BBB/A-) to the three-, five-, seven- and 10-year tranches initially talked.

ChemChina also priced €1.2 billion of 1Ύ% four-year notes. All the notes were issued by wholly owned subsidiary CNAC (HK) Finbridge Co. Ltd.

The $1 billion of 4 1/8% three-year notes priced at 99.715 to yield 4.27%, or a spread of Treasuries plus 182.5 bps, which matched final price guidance and was tighter than initial price guidance in the Treasuries plus 200 bps area.

The $1.3 billion of 4 5/8% five-year notes priced at 99.881 to yield 4.7%, or 202.2 bps over Treasuries, which matched guidance and was tighter than initial talk at the Treasuries plus 220 bps area.

The $800 million of 4 7/8% seven-year notes priced at 99.345 for a yield of 5.04%, or spread of 220 bps over Treasuries, which matched guidance but was revised tighter from initial talk at a spread of Treasuries plus 235 bps.

The $1.75 billion of 5 1/8% 10-year notes priced at 99.336 to yield 5.27%, or Treasuries of plus 235 bps, which was tighter than initial talk in the 250 bps area.

The $100 million of 5½% 30-year notes price at par to yield 5½%.

Pricing of the euro notes tranche was at a spread of mid-swaps plus 150 bps, compared to mid-swaps plus 150 bps to 155 bps guidance.

BofA Merrill Lynch, Barclays, BNP Paribas, BOC International, China Citic Bank International, Commerzbank, Credit Agricole CIB, Credit Suisse, First Abu Dhabi Bank, HSBC, Industrial Bank Co. Ltd. Hong Kong Branch, Morgan Stanley, MUFG, Natixis, RaboBank, Santander, Societe Generale CIB and UniCredit are joint global coordinators, joint lead managers and joint bookrunners.

New sukuk issuance

Islamic Development Bank priced $1.25 billion five-year Islamic bonds on Thursday for a yield spread of mid-swaps plus 33 bps.

Pricing came tight compared to initial talk in the high 30 bps area over mid-swaps.

The bonds were sold via bookrunners CIMB, Citigroup, Emirates NBD Capital, Gulf International Bank, HSBC, Natixis, SMBC Nikko and Standard Chartered Bank.

BankMuscat prices at 230 bps

Oman's BankMuscat priced $500 million of 4 7/8% five-year notes at 99.2 to yield 5.058%, or mid-swaps plus 230 bps.

Pricing was tight compared to initial talk for a yield in the mid-swaps plus 250 bps area.

The notes were marketed by Bank ABC, BankMuscat, Citigroup, Credit Agricole CIB, Emirates NBD Capital, First Abu Dhabi Bank, HSBC and ICBC Standard Bank.

Al Ahli Bank of Kuwait eyed

Al Ahli Bank of Kuwait has mandated banks and scheduled a roadshow for a dollar-denominated perpetual bond that is non-callable for five years.

The issue will be sold via Citigroup, HSBC and JPMorgan, and fixed income investor meetings were slated to begin on Thursday.

Meetings will be held in Asia, the UAE and London and an additional Tier 1 bond offering will follow, subject to market conditions.

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