Romania, Hutchison price megadeals; Petrobras talks four-parter; EMBI Global 5 bps tighter

By Aleesia Forni and Paul A. Harris

Portland, Ore., Jan. 31 - The JP Morgan Emerging Markets Bond Index, EMBI Global closed at a spread of 411 basis points bid, 5 bps tighter on the day, according to an emerging markets bond investor.

The index is 15 bps tighter on the year, the buysider added.

Accounts are chasing emerging markets bonds higher in the secondary market, the investor said.

Among on-the-run paper, Brazil's 5 5/8% global bonds due in 2041 were at 115½ bid, 116 1/8 offered on Tuesday, ½ point higher on the day.

Recently priced paper is also performing notably in the secondary market, the investor said.

New bonds from Peru's Volcan Compania Minera SA, a tranche of 5 3/8% notes maturing on Feb. 2, 2022 (Baa3/BBB-/BBB-), were at par ½ offered on Tuesday. Volcan priced its $600 million issue at par last week.

In the primary market Tuesday, Romania and Hutchison Whampoa Ltd. priced megadeals.

And Petroleo Brasileiro SA (Petrobras) set price talk for a benchmark four-part dollar-denominated offer.

Romania prices $1.5 billion

In the sovereign space, Romania priced a $1.5 billion 6¾% 10-year sovereign bond to yield 6 7/8% on Tuesday.

The deal launched early Tuesday at a 6 7/8% yield.

Citigroup, Deutsche Bank and HSBC were the leads.

Hutchison brings $1 billion

Hutchison Whampoa priced a $1 billion add on (A3/A-) on Tuesday,

The offering included a $500 million add-on to Hutchison's 3.5% notes due Jan. 13, 2017 that came to market at 101.287 to yield 3.216%, or a spread of Treasuries plus 250 basis points.

Also part of the sale was a $500 million add-on to the company's 4.625% notes due Jan. 13, 2022 that priced at 99.729 to yield 4.659%, a spread of Treasuries plus 285 bps.

Goldman Sachs and HSBC were the bookrunners.

Hutchison priced the original $1.5 billion in two pieces on Jan. 11. The $500 million five-year tranche priced at 99.519 to yield Treasuries plus 275 basis points while the $1 billion 10-year tranche came at a spread of Treasuries plus 275 bps.

MAF finishes sukuk

MAF Sukuk Ltd. - a unit of Dubai-based developer Majid Al-Futtaim Holding - priced a $400 million five-year sukuk (/BBB/BBB) at par to yield 5.85%, a buyside source said on Tuesday.

The yield printed inside the 5.9% to 5.95% yield talk.

Abu Dhabi Islamic Bank, Dubai Islamic Bank, HSBC and Standard Chartered were the bookrunners.

Petrobras talks four-parter

Petrobras set price talk on a benchmark four-part offering of dollar-denominated notes (A3/BBB/BBB).

A tranche of new three-year notes is talked at a 290 basis points area spread to Treasuries.

A tranche of new five-year notes is talked in the Treasuries plus 300 bps area.

An add-on to the company's 5 3/8% notes due Jan. 27, 2021 is talked in the Treasuries plus 310 bps area.

Finally, an add-on to Petrobras' 6¾% notes due Jan. 27, 2041 is talked in the Treasuries plus 310 bps area.

It was expected that the deal could price as early as Tuesday night, according to buy-side source who spoke by telephone, heading into the Tuesday New York close.

However terms are not expected to circulate widely before Wednesday morning, the source added.

BB Securities, Citigroup, Banco Itau, BBVA, J.P. Morgan, Morgan Stanley and Banco Santander are the leads.

Cofide talks benchmark deal

Peru's Corporacion Financiera de Desarollo (Cofide) talked its benchmark offering of 10-year dollar-denominated notes with a 340 to 350 basis points spread to Treasuries.

The deal could price as early as Wednesday.

Deutsche Bank and JPMorgan are the leads.

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