New Mashreq notes edge up in trade; Egypt, Cyprus to price; Emirates Development Bank joins calendar

By Rebecca Melvin

New York, Feb. 19 – A number of new issues for the Central and Eastern Europe, Middle East and Africa region were in focus on a busy post U.S. holiday-session.

MashreqBank PSC’s newly priced 4¼% notes edged up to just over par in trade after the United Arab Emirates’ private bank priced $500 million of the five-year notes at just under par.

The new MashreqBank notes were closed at 100 bid, 100.25 offered after pricing at 99.773, a London-based trader said.

The new issue was priced at a yield spread of mid-swaps plus 175 basis points, which was tightened from guidance of mid-swaps plus 175 bps to 180 bps and initial price talk in the area of mid-swaps plus 200 bps.

BNP Paribas, BofA Merrill Lynch, Commerzbank, MashreqBank, Nomura and Societe Generale were bookrunners for the deal, which saw orders in excess of $1.7 billion.

The Arab Republic of Egypt was bringing a large triple tranche deal of notes, which were expected to price late Tuesday. But final terms were not heard by Prospect News’ deadline.

Egypt’s five-year tranche was guided initially to a yield in the 6.6% area; the 10-year tranche was guided to a yield in the 8% area; and the 30-year tranche was guided to the 9.1% area.

Citigroup, Goldman Sachs and J.P. Morgan were the joint bookrunners.

The deal size may be $5 billion, according to a market source.

The Republic of Cyprus also has selected banks for a planned benchmark offering of euro-denominated 15-year notes, according to an announcement.

Citigroup, Goldman Sachs and HSBC are joint lead managers for the Regulation S deal.

Further details were not immediately available.

And back to bank debt, the Emirates Development Bank PJSC has mandated banks and scheduled a series of fixed-income investor meetings regarding a benchmark-sized offering of U.S. dollar-denominated five-year notes (expected rating: //AA-), according to a market source.

Emirates NBD Capital, Industrial and Commercial Bank of China and Standard Chartered Bank are joint lead managers to arrange the roadshow for the bank’s debut in Asia, the Middle East and Europe, beginning on Wednesday.

The bank’s Regulation S debut deal, coming under its €3 billion medium-term note program, may follow subject to market conditions.

There was chatter earlier this month about the bank’s planned issuance.

The company provides financial services for industrial projects in the United Arab Emirates.

For Asia, Hong Kong-based property developer, Yuzhou Properties Co. Ltd. priced $500 million of 8½% five-year notes (proposed ratings: B1//BB-) at par, according to a market source.

Bookrunners were Bank of China, Credit Suisse, Goldman Sachs, HSBC, China International Capital Corp., China Merchants Bank, Haitong International Securities Group, JPMorgan, Morgan Stanley and Yuzhou Investment.

Logan Property Holdings Co. Ltd. plans to sell dollar-denominated senior fixed-rate notes (expected rating: B+) in the international markets, according to an announcement.

Deutsche Bank, HSBC, BOC International, Guotai Junan International, Haitong International, Barclays, China Citic Bank International, CEB International and China Industrial Securities International will be the bookrunners for the Regulation S offering.

Proceeds will be used to refinance debt.

Logan Property is a Shenzhen, China-based real estate development company.

Kaisa Group Holdings Ltd. plans to conduct an international offering of dollar-denominated senior notes, according to a company announcement.

China Citic Bank International, Credit Suisse, Deutsche Bank and Haitong International are the joint global coordinators, joint bookrunners and, together with Founder Securities (Hong Kong) Capital Co. Ltd., are joint lead managers.

Pricing of the notes will be determined through a book-building process.

The notes are expected to be listed on the SGX-ST.

Proceeds will be used to refinance existing debt.

Kaisa Group is a Shenzhen, China-based property development company.

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