Issues from Singapore's Clifford Capital, Guatemala's Cementos Progreso, Bank of Georgia

By Christine Van Dusen

Atlanta, Oct. 29 - Singapore's Clifford Capital, Guatemala's Cementos Progreso SA and JSC Bank of Georgia sold notes on Tuesday as investors continued to focus on the economic picture in the United States.

"Yesterday's data was, overall, disappointing, with pending home sales down 5.6%, month over month, although industrial production was up 0.6%," a London-based analyst said.

With the Federal Open Market Committee meeting underway, flows for emerging markets bonds were a bit more balanced than they were on Monday, a London-based trader said.

In the secondary market on Tuesday bonds from Russian corporates received some attention, with better buyers spotted for OJSC Alrosa, OJSC MMC Norilsk Nickel, Nord Gold NV and Metalloinvest JSC, a trader said.

Better sellers were seen for VimpelCom Holdings BV and OAO Lukoil, she said.

"We have also seen strong demand for Gazprom sterling paper in the last couple of sessions," she added. "In bank space, we are seeing good retail demand for the new Gazprombank euro bond as well as better buyers of Sberbank subs."

Looking to Latin America, activity picked up on Tuesday and investor sentiment improved, a New York-based trader said.

Spreads for bonds from Brazil's Petrobras International Finance Co. rallied and Peruvian bank paper was very firm, he said.

In deal-related news, Vietnam's Vingroup JSC and Peru's San Miguel Industrias PET SA gave guidance, while GEMS Menasa (Cayman) Ltd., Russia's Gazprombank OJSC and International Personal Finance plc set roadshows.

Meanwhile, Morocco's OCP Group, Kenya and Turkey's Turk Telekom planned deals.

Middle East in focus

In trading, Dubai-based Majid Al Futtaim Holding LLC's (MAF) recent $500 million issue of 7 1/8% perpetual notes that priced at par traded between 99.37 and 99½ on Tuesday, a trader said.

"A little soggy," he said.

Qatar National Bank SAQ's recent $750 million tranche of 2¾% fixed-rate notes due in 2018 that priced at 99.459 traded about 7 basis points to 8 bps wider than launch.

Bahrain, meanwhile, continued to trade well while perpetual notes were "a mixed bag," he said.

"I've seen some decent demand over the past 48 hours for Abu Dhabi Islamic Bank, Dubai Islamic Bank and Emirates Islamic Bank perpetuals," he said. "However, the prices are definitely not reflecting that demand over the past 48 hours."

Also from the region, bonds from Lebanon saw demand on Tuesday.

TAQA notes mature

One trader was focusing on Abu Dhabi National Energy Co. (TAQA) and its 4 3/8% euro-denominated notes due in 2013, which matured on Monday.

"This was a €750 million-deal that launched back in the hey day, in late October 2006, and boy, was she a favorite of the retail investor," he said.

With this bond out of the way, the bonds due in 2016, 2018 and 2021 from International Petroleum Investment Co. (IPIC) are the only euro-denominated and investment-grade bonds that remain from the Gulf region.

"[Saudi Arabia's Saudi Basic Industries Corp. (Sabic)]'s 2013 euro bond matures next week," he said. "Sub-investment grade, Dubai Holding's 2014 euro bond matures next January."

Clifford, Cementos issue notes

In its new deal, Singapore-based Clifford Capital priced $300 million 1 5/8% notes due 2018 at 99.105 to yield 1.813%, or Treasuries plus 53 bps.

DBS Securities, HSBC and Standard Chartered Bank were the bookrunners for the Regulation S deal.

And Guatemala's Cementos Progreso priced a $300 million issue of 7 1/8% notes due 2023 at 98.253 to yield 7 3/8%, following talk in the mid- to high-7% area.

Deutsche Bank was the bookrunner for the Rule 144A and Regulation S transaction.

The notes traded on Tuesday at 100½ bid.

Bank of Georgia prints bonds

In another new deal, Bank of Georgia priced a $150 million tap of its 7¾% notes due 2017 to yield 6 1/8%, a market source said.

The notes were talked at a yield in the 6½% area.

BofA Merrill Lynch and JPMorgan were the bookrunners for the Rule 144A and Regulation S deal.

Other details of the new issue were not immediately available on Tuesday.

The original $250 million issue priced in June at 99.491 to yield 7 7/8% via JPMorgan, Credit Suisse and BofA Merrill Lynch in a Rule 144A and Regulation S deal.

Vingroup gives guidance

Vietnam-based Vingroup set initial talk in the 12% area for an upcoming issue of dollar-denominated notes due in 4½ years, a market source said.

Credit Suisse is the global coordinator. Credit Suisse, Deutsche Bank and ING are the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be transferred to Vincom Retail for funding investment projects, for working capital and for general corporate purposes.

Peruvian company sets talk

Peru-based PET container marketer San Miguel Industrias PET set initial price talk in the 9% area for its upcoming $200 million issue of seven-year notes, a market source said.

BofA Merrill Lynch and Citigroup are the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used for debt refinancing and general corporate purposes.

The notes are expected to price on Wednesday.

GEMS roadshow ahead

GEMS Menasa has mandated Abu Dhabi Islamic Bank, Credit Suisse and Morgan Stanley as bookrunners for a dollar-denominated issue of Islamic bonds that will be marketed during a roadshow, a market source said.

The Regulation S marketing trip for the perpetual notes will begin on Friday in Dubai and Abu Dhabi and travel to Singapore, Hong Kong, Zurich and Geneva before concluding on Nov. 8 in London.

The issuer is a subsidiary of Global Education Management Systems Ltd., based in the United Arab Emirates.

"This will be something different, away from the stock-standard corporates," a trader said.

Roadshow for Gazprombank

Russia's Gazprombank has mandated banks to lead a roadshow to market an issue of Swiss franc-denominated notes, a market source said.

Deutsche Bank, GPB Financial Services and UBS Investment Bank are the bookrunners for the Regulation S deal and marketing trip.

The roadshow will begin on Nov. 5.

IPF on the road

International Personal Finance is on a roadshow for a sterling-denominated issue of notes, a market source said.

Canaccord Genuity Ltd. is the bookrunner for the deal.

The roadshow began on Monday.

Based in Leeds, England, the home credit company caters to those in Poland, the Czech Republic, Slovakia, Mexico and Romania.

African issuers explore deals

Morocco's OCP Group is looking to issue dollar-denominated notes, a market source said.

No other details were immediately available on Tuesday.

OCP is a state-run phosphate company that is based in Casablanca.

Kenya is looking to issue up to $2 billion in notes by late November, a market source said.

Barclays, JPMorgan and Standard Bank are the bookrunners for the deal.

Turk Telecom could print bonds

Turkey's Turk Telekom is looking to issue bonds, a market source said.

No other details were immediately available on Tuesday.

The issuer is an Ankara-based telecommunications company.

Jordan does deal

On Monday, Jordan priced $1.25 billion 2.503% notes due 2020 at par to yield 2.503%, or Treasuries plus 60 bps, a market source said.

Citigroup, HSBC and JPMorgan were the bookrunners for the deal.

The proceeds will be used to reinforce the sovereign's economic reform program, supported by the United States Agency for International Development (USAID).

Ping An oversubscribed

The final book for Ping An Insurance Group Co. of China's RMB 1.8 billion 4¾% notes due 2018 that priced at par was RMB 5.5 billion from 113 accounts, a market source said.

BofA Merrill Lynch and HSBC were the active bookrunners for the Regulation S deal. Citigroup and Goldman Sachs were the passive bookrunners.

About 70% of the orders went to asset and fund managers, 19% to private banks, 6% to banks and 5% to insurers and others.

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