Gazprom, PKO price euro benchmarks; Ivory Coast launches euro deal; Emirates brings sukuk

By Rebecca Melvin

New York, March 15 – The emerging primary market remained active on Thursday with both euro- and dollar-denominated deals pricing as U.S. Treasuries stabilized following three days of gains.

Terms generally came tight compared to initial talk. Terms emerged on PJSC Gazprom’s €750 million of eight-year notes, which priced on Wednesday at par to yield 2½%.

Beyond the Moscow-based Gazprom deal, there was new issue action in nearly all other regions including the Middle East, Africa and Asia.

The United Arab Emirates’ Emirates Airlines priced a $600 million 10-year sukuk on Thursday at 99.573 to yield 4.6%. The notes, which have a 10-year legal life and a five-year weighted average life, were initially talked to yield in the high 4% area.

Saudi Arabia’s Dar Al Arkan Real Estate Development Co. priced a $500 million 6 7/8% sukuk due 2023 at 98.964 to yield 7¼%, which was tightened from 7¼% from 7½% initially.

Poland’s PKO Bank Polski priced €500 million of ¾% notes due 2024 at 99.892 to yield 0.769%, or mid-swaps plus 23 basis points, which was tight compared to guidance for yield spread of mid-swaps plus 26 bps.

The Ivory Coast launched €1.7 billion of notes in dual tranches, including €850 million of 2030 notes to yield 5¼% and €850 million of 2048 notes to yield 6 5/8%.

Pricing for the African sovereign was tightened for the 2030 notes from guidance of 5 3/8%, plus or minus 125 bps, and initial price talk of 5½% to 5 5/8%. And for the 2048 notes, pricing was tightened from guidance of 6¾%, plus or minus 125 bps, and initial talk of a 6 7/8% to 7% yield.

Demand for high beta, euro deals remains elevated. The order books for Ivory Coast were in excess of €4.8 billion, split evenly between the tranches.

In Latin America, final terms were heard on Peru LNG SRL’s $940 million of 12-year notes, but nothing more was heard on Unigel Participacoes SA’s notes, for which initial price talk was heard on Wednesday in the area of 8%.

Peru LNG, the natural gas liquefaction plant located in Pampa Melchorita, Peru, priced its notes at par on Thursday to yield 5 3/8%. Proceeds will be used to refinance existing project finance debt.

© 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.