Issuance comes from Gazprombank, Famsa, Dalian Wanda; Ukraine bonds sell off amid violence

By Christine Van Dusen

Atlanta, Jan. 23 - Russia's OJSC Gazprombank, Estonia's Eesti Energia AS, Singapore-based Aspial Corp. Ltd., China's Greenland Hong Kong Holdings Ltd., Mexico's Grupo Famsa SAB de CV and China's Dalian Wanda Commercial Properties Ltd. issued bonds on a somewhat defensive trading day for emerging markets bonds.

Most of the attention was focused Ukraine, Argentina, Turkey and South Africa, a London-based trader said. "Spreads are definitely wider," he said.

In other trading on Thursday, the 2024 dollar bonds from Gabon were "on the move again," he said.

The notes moved down to 104 on Thursday morning before trading back at 104 1/8 bid, he said.

Buyers were seen for Dubai Electricity and Water Authority bonds, as well as Aldar Properties PJSC and Abu Dhabi Commercial Bank 2023s, he said.

"People woke up to the fact that they offered limited upside from the squeezed level they were at this morning and they moved lower," he said. "Perpetuals are weaker."

Kuwait-based Kipco's bonds "moved a little defensively" on Thursday, he said. "But we did see some retail demand on both the 2016s and 2020s."

Meanwhile, sovereign bonds from Ukraine have been selling off since protests turned violent in Kiev and casualties were reported, said Svitlana Rusakova of Dragon Capital.

The only bonds that seemed insulated from the crisis were the sovereign's 2014s and Naftogaz, she said, which were off just a ½ point to a point.

This was because of the "expected disbursements of Russian aid," she said. "Another $2 billion is supposed to come in by the end of January."

Longer-dated bonds, however, have moved down as much as 4 points so far this week.

"Corporates and quasi-sovereigns lost between 1½ to 3 points, but again, we saw some buying on the dip," she said.

Qatar, Bahrain in focus

Sukuks from Qatar offered a defensive place to park cash and Bahrain sovereign bonds performed.

"Even some long-end Qatar paper came out, with the 2040s and 2042s marked lower," a trader said. "Markets can't go up forever, so this pull-back is healthy. As always, the Gulf region should hold in much better, although there was much more paper around today than in recent weeks."

Turkey trades down

Turkey's new $2.5 billion 5¾% notes due 2024 that priced at 99.251 were active, a trader said.

The notes, which came to the market at a yield of 5.85%, were quoted 10 cents below reoffer on Thursday.

Citigroup, HSBC and Morgan Stanley were the bookrunners for the Securities and Exchange Commission-registered deal.

Israel moves up

The new issue of notes from Israel - €1.5 billion 2 7/8% notes due 2024 that priced at 99.512 - moved up 15 cents in trading on Thursday, a trader said.

The notes priced to yield 2.932%, or mid-swaps plus 90 basis points, via Barclays, Citigroup and Goldman Sachs in a Regulation S deal.

The notes issue was nearly six-times oversubscribed.

Ruble market could grow

Russia's ruble debt market could attract as much as $15 billion in foreign investments during the next three years, according to a report from Commerzbank.

"Despite facilitating portfolio capital inflows, we still see Russia's balance of payments weakening further," the report said.

Gazprombank prices bonds

Russia-based Gazprombank sold RMB 1 billion 4¼% notes due 2017 at par to yield 4¼%, a market source said.

The notes were issued by special-purpose vehicle GPB Eurobond Finance plc.

Bank of Communications, HSBC and Gazprombank were the bookrunners for the deal.

Gazprombank is a Moscow-based lender.

Eesti Energia sells notes

In its new deal, Estonia-based utility company Eesti Energia priced a €100 million increase of its existing 4¼% notes due 2018 at 109.085 to yield 2.181%, or mid-swaps plus 112 bps, according to a company announcement.

Deutsche Bank and Nordea Markets were the bookrunners for the deal.

The proceeds will be used for general corporate purposes, including financing the company's capital expenditure program.

The eurobond's size now totals €400 million.

Aspial does deal

Singapore-based Aspial announced it issued S$80 million of 4½% series 2 notes due 2017 with DBS Bank.

The 4½% notes were issued under Aspial's S$500 million multicurrency medium-term note program established on June 10, 2013.

The company had issued a total of S$100 million series 1 notes in three tranches, as previously reported.

Proceeds from the series 2 notes will be used for general corporate funding requirements, investments, refinancing of existing borrowings, working capital and capital expenditures.

The Singapore-based investment holding company manufactures and retails jewelry, engages in property investment, provides building construction and contracting services and offers pawn brokerage services.

Issue from Greenland Hong Kong

Shanghai-based Greenland Hong Kong announced it issued RMB 1.5 billion of 5½% bonds at par to yield 5½% on Thursday with bookrunner Goldman Sachs (Asia) in a Regulation S deal.

Proceeds will be used to finance existing and new property project and for general corporate purposes.

The company said that Greenland Holding Group Co. Ltd., which beneficially holds about 60% of the outstanding shares of Greenland Hong Kong, entered into a keepwell deed and deed of equity interest purchase undertaking on terms similar to those entered into in connection with its $700 million 4¾% bonds due 2016 issued in October.

Greenland Holding entered into the keepwell deed to help the company meet its obligations under the new bonds.

Famsa prints bonds

Mexico-based retail company Grupo Famsa priced $60 million 6 1/8% notes due 2015 at par to yield 6 1/8%, a market source said.

The Regulation S notes were talked at 6¼% to 6½%.

Espirito Santo Investment Bank was the bookrunner for the unrated deal.

Deal from Dalian Wanda

China-based conglomerate Dalian Wanda sold $600 million 7¼% notes due 2024 at 99.036 to yield 7.388%, or Treasuries plus 455 bps, a market source said.

BofA Merrill Lynch, Barclays, Goldman Sachs, HSBC, UBS were the bookrunners for the Regulation S deal.

Roadshow for Russian Railways

Russian Railways will set out on Jan. 27 for a roadshow to market a potential issue of notes, a market source said.

Barclays, Citigroup, JPMorgan and VTB Capital are arranging the marketing trip.

Russian Railways is a rail operator based in Moscow.

Unicomer gives guidance

El Salvador's Grupo Unicomer - through Regal Forest Holding Co. Ltd. - set talk in the mid-to-high-8% area for its upcoming issue of up to $300 million notes due in 2021, a market source said.

BCP Securities, Citigroup and Deutsche Bank are the bookrunners for the Rule 144A and Regulation S deal, which is expected to price on Friday.

The issuer is an international retailing group.

Dah Sing oversubscribed

The final book for China-based Dah Sing Bank Ltd.'s new $225 million 5¼% notes due 2024 was $1.9 billion from 111 accounts, a market source said.

The notes priced on Wednesday at 99.191 to yield 5.437%, or Treasuries plus 375 bps, via HSBC and Citigroup in a Regulation S deal.

About 88% of the orders came from Asia and 12% from Europe, with 41% from fund managers, 29% from private banks, 19% from banks, 9% from insurers and 2% from corporates.

Leasing company draws orders

Also attracting orders was Wednesday's deal from China Universal International Leasing, which - through issuer Universal Number One. Co. - sold RMB 1 billion 5.7% notes due 2017 at par to yield 5.7%, a market source said.

Bank of Communications and BNP Paribas were the bookrunners for the Regulation S deal.

About 89% of the orders came from China and 11% from Singapore, with banks picking up 39%, private banks 32% and asset and fund managers 29%.

China General Technology (Group) Holding Co. was the keepwell deed provider.

Marisa Wong contributed to this article.

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