Odebrecht, Korea Gas plan new deals; Korea bonds widen; RAKbank sets roadshow

By Aleesia Forni

Virginia Beach, June 9 – Emerging markets bonds performed well on Monday, while the primary market saw companies including Odebrecht SA and Korea Gas Corp. announce plans to price dollar-denominated deals.

One source noted that the market retained a “solid footing” on Monday.

In other primary news, Ecuador and National Bank of Ras Al Khaimah (RAKbank) will both begin roadshows this week ahead of planned notes offerings.

The trader said that bonds from Investment Corp. of Dubai continued to be popular during the session.

The company’s bonds due 2020 and 2024 traded around 15 basis points better on the week.

In other secondary market action, bonds from Asia were trading mostly better on the day.

The Republic of Korea’s new dollar notes, which were trading around 10 bps last week compared to Wednesday’s pricing, widened 7 bps on Monday.

Ecuador investor meetings

Ecuador joined the forward calendar on Monday, announcing plans to begin a series of investor meetings in the United States and United Kingdom, according to a market source.

The roadshow will make stops in London on Tuesday, Boston on Wednesday, Los Angeles on Thursday and New York on Friday.

Citigroup is the global coordinator and is joined by Credit Suisse as the joint bookrunners.

The notes will be sold via Rule 144A and Regulation S.

Odebrecht plans sale

Also on Monday, Brazil’s Odebrecht set price talk for its planned offering of dollar-denominated perpetual notes in the 7% area, a market source said.

Morgan Stanley, BB Securities and Bradesco BBI are the bookrunners for the Rule 144A and Regulation S deal.

Odebrecht is an engineering, construction, chemical and petrochemical conglomerate based in Salvador da Bahia, Brazil.

Korea Gas eyes offering

Korea Gas is also planning to price an offering of dollar-denominated bonds via Rule 144A and Regulation S, a market source said.

BNP Paribas Securities Corp, Citigroup Global Markets Inc., HSBC Securities, JPMorgan and UBS are the bookrunners for the deal.

Korea Gas is a natural gas company based in Seongnam, South Korea.

RAKbank roadshow

RAKbank will begin a roadshow this week ahead of a planned dollar-denominated offering of bonds, market sources said.

The roadshow will begin in the United Arab Emirates on Wednesday before moving to Singapore on Friday and wrapping up in London on June 16.

National Bank of Abu Dhabi and Standard Chartered are arranging the meetings.

The issuer is a commercial bank based in Dubai, United Arab Emirates.

Christine Van Dusen contributed to this review.

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