Argentina prints deal; AHCA vote in spotlight; Turkey, Indonesia Eximbank line up roadshows

By Christine Van Dusen

Atlanta, March 23 – Argentina priced an issue of Swiss franc-denominated notes on a Thursday that had investors watching the U.S. House of Representatives to see whether the American Health Care Act would find the required support.

“The vote is considered to be a test on whether Trump will also be able to push other reform agendas, such as tax reforms,” a London-based analyst said.

But Republicans ended up postponing the vote after failing to garner enough support.

Meanwhile, the three-tranche issue of notes due in 2021, 2026 and 2046 from Saudi Arabia again saw some activity in trading.

The 2 3/8% notes due in 2021 that priced at 99.007 to yield 2.588%, or Treasuries plus 135 basis points, were seen at 97.87 bid, 98.12 offered after Wednesday’s 97.93 bid, 98.23 offered.

The 3¼% notes due in 2026 that priced at 98.679 to yield 3.407%, or Treasuries plus 165 bps, moved to 96.80 bid, 96.95 offered after Wednesday’s 96½ bid, 96¾ offered.

And the 4½% notes due in 2046 that priced at 98.015 to yield 4.623%, or Treasuries plus 210 bps, were seen Thursday at 98 bid, 98.15 offered after Wednesday’s 97.81 bid, 97.96 offered.

Citigroup, HSBC, JPMorgan, Bank of China, BNP Paribas, Deutsche Bank, Goldman Sachs, MUFG Securities, Morgan Stanley and NCB Capital were the bookrunners for the Rule 144A and Regulation S deal.

This came as Fitch ratings downgraded Saudi Arabia to A+ from AA- and set the sovereign’s outlook back to stable.

“The decision came on the back of a continued deterioration of the fiscal and external accounts, as well as implementation risks on the ambitious reform program,” the analyst said.

Asia thin, range-bound

In trading from Asia, bonds were mostly thin and range-bound, with recent issues lagging the market, a trader said.

“We saw some buying in Indian corporates again,” he said.

High-beta names from Asia rebounded as much as 3 bps, recovering about half of the previous day’s widening, another trader said.

“China bank seniors are broadly unchanged,” he said. “Korea banks are slightly softer.”

Philippines unchanged

Sovereign bonds from Philippines were unchanged while the new notes from Indonesia ticked higher.

The latter sovereign printed $3 billion of two tranches of Islamic bonds due in five and 10 years, with $1 billion 3.4% notes due 2022 pricing Wednesday at par to yield 3.4%, following talk of 3¾%.

A $2 billion tranche of 4.15% notes due 2027 priced at par to yield 4.15%, following talk of 4½%.

Deutsche Bank, HSBC, Mandiri Securities, National Bank of Abu Dhabi and Standard Chartered were the joint bookrunners and lead manager for the Rule 144A and Regulation S deal. Bahana Securities, Danareksa Sekuritas and Trimegah Sekuritas Indonesia were the co-managers.

“The five-year had good accounts adding in the secondary and closed at 100.30 bid, 100.40 offered,” a trader said. “The 10-year was slightly heavier but managed to hold reoffer, last seen at 100.10 bid, 100.20 offered.”

Argentina prices CHF notes

Argentina priced an upsized CHF 400 million issue of 3 3/8% notes due Oct. 12, 2020 at par to yield 3 3/8%, according to an announcement from the sovereign.

BNP Paribas, Credit Suisse and UBS were the bookrunners for the deal.

Other details were not immediately available on Thursday.

Market-watchers were also whispering about a possible issue of bonds from Ivory Coast.

Alfa-Bank talks notes

In other deal-related news, Russia’s JSC Alfa-Bank set talk in the 2¾% area for a €300 million issue of three-year loan-participation notes, a market source said.

Alfa-Bank, ING and UBS are the bookrunners for the Regulation S deal.

The notes will be issued via ABH Financial Ltd.

Alfa-Bank is based in Moscow.

Indonesia Eximbank plans notes

Indonesia Eximbank will set out on March 27 for a roadshow to market a dollar-denominated issue of notes, a market source said.

HSBC, MUFG Securities and OCBC Bank are the bookrunners for the Regulation S deal.

The roadshow will be held in Asia and Europe.

The issuer is based in Jakarta.

Roadshow for Turkey

Turkey is planning a roadshow to market a dollar-denominated issue of benchmark-sized Islamic bonds, a market source said.

Dubai Islamic Bank, HSBC and Standard Chartered are the bookrunners for the deal.

The notes could carry a tenor of between five and eight years.

Arcos Dorados seeks issuance

Argentina’s Arcos Dorados Holdings Inc. is looking to issue senior notes, according to a company filing.

The proceeds from the Rule 144A and Regulation S deal will be used for general corporate purposes, to repay loans and to pay the principal and premium in connection with the tender offer for $80 million of the company’s 6 5/8% notes due 2023.

Buenos Aires-based Arcos Dorados is the world’s largest McDonald’s franchisee.

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