Sberbank, Gazprombank rise in trading; Albaraka Turk suffers; issuers line up roadshows

By Christine Van Dusen

Atlanta, June 27 – Bonds from OAO Sberbank were up in trading on Friday as investors kept an eye on mixed economic data from the United States, the tensions in Ukraine and the continuing conflict in Iraq.

The new Sberbank issue – €1 billion 3.3524% notes due 2019 that priced at par – was up almost 0.4 points on Friday, a trader said.

“A well-received deal that will make Russian banks more confident to issue in euros,” she said.

Russia’s OAO Gazprombank followed with its new deal this week, with a €1 billion issue of 4% notes due 2019 pricing at par to yield mid-swaps plus 334.9 basis points.

“That has also performed well, up about 0.3 points,” she said.

Abu Dhabi-based Al Hilal Bank’s new 5˝% perpetual notes that priced at par also traded up at the end of the week, moving higher by 0.65 points before giving back some gains, she said.

Turkey-based Albaraka Turk Katilim Bankasi AS’ 6Ľ% notes 2019 that priced at par didn’t fare as well in trading, a trader said.

“Generally unpopular, printing at the lower end of the size guidance,” she said. “It has since traded down 0.3 points.

In other trading at the end of the week, bonds from Turkey’s banks were about 8 bps wider, on average, a trader said.

From the Middle East, bank bonds were wider by about 6 bps, he said, with Abu Dhabi Islamic Bank and Dubai Islamic Bank performing relatively well.

Cofide sets roadshow

Peru’s Corporacion Financiera de Desarrollo SA (Cofide) will set out on Monday for a roadshow to market a dollar-denominated issue of notes due in five and 10 years, a market source said.

Citigroup, Morgan Stanley and Standard Chartered Bank are the bookrunners for the Rule 144A and Regulation S deal.

The roadshow will be held in the United States, Latin America and Europe.

Cofide is a development bank based in Lima, Peru.

Roadshow for Chinese corporate

Hong Kong Science and Technology Parks Corp. has mandated ANZ, CCB International and Standard Chartered Bank to lead a roadshow for a Hong Kong dollar-denominated issue of notes, a market source said.

The roadshow will begin July 2.

A Regulation S issue of notes is expected to follow.

ONGC to market notes

India’s ONGC Videsh Ltd. – a subsidiary of Oil and Natural Gas Corp. Ltd. – will market a dollar- or euro-denominated issue of notes during an upcoming roadshow, a market source said.

BNP Paribas, Citigroup, Deutsche Bank, RBS and Standard Chartered Bank are the bookrunners for the Regulation S marketing trip.

ONGC is based in Dehradun, India.

PZU prints

On Thursday, Poland’s Powszechny Zaklad Ubezpieczen SA (PZU) sold €500 million 1 3/8% notes due July 3, 2019 (/A-/) at 99.407 to yield mid-swaps plus 85 bps, a market source said.

BofA Merrill Lynch, Citigroup, Deutsche Bank, Goldman Sachs and UBS were the bookrunners for the Regulation S deal.

PZU is a Warsaw-based insurance company.

Mastellone Hermanos does deal

Also on Thursday, Argentina’s Mastellone Hermanos SA sold $200 million 12 5/8% notes due July 3, 2021 (expected ratings: /CCC-/B-) at par to yield 12 5/8%, a market source said.

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

The notes were issued as part of a purchase and exchange offer for several series of notes.

Mastellone Hermanos is a dairy company based in Buenos Aires.

Gazprombank draws orders

The final book for Gazprombank’s new €1 billion 4% notes due July 1, 2019 that priced at par was about €5.5 billion from about 475 accounts, a market source said.

The notes came to the market on Thursday to yield 4%, or mid-swaps plus 334.9 bps, tighter than talk.

About 24% of the orders came from Switzerland, 14% from Asia, 14% from the United Kingdom, 13% from Germany, 12% from France, 11% from Russia and 12% from others.

Asset managers and insurers picked up 47%, private banks 38%, banks 12% and others 3%.

Credit Suisse, Deutsche Bank, Gazprombank and Societe Generale were the bookrunners for the Regulation S deal.

AMMB releases final book

Also attracting orders was Malaysia-based AMMB Holdings Bhd., which priced through wholly owned subsidiary AmBank Bhd. a $400 million issue of 3 1/8% notes due July 3, 2019, a market source said.

The deal priced on Thursday at 99.752 to yield Treasuries plus 150 bps with AmInvestment Bank and ANZ in a Regulation S deal.

About 88% of the orders came from Asia and 12% from others, with 63% from asset and fund managers, 20% from banks, 7% from sovereigns, 4% for insurers, 4% from private banks and 2% from others.

The proceeds will be used for working capital, general banking and other general corporate purposes.

AMMB is a Kuala Lumpur-based retail and commercial bank.

Singapore orders for Tan Chong

About 99% of the orders for Hong Kong-based Tan Chong International Ltd.’s new S$118 million 2.8% notes due Jan. 9, 2017 came from Singapore, a market source said.

The notes priced Thursday at par to yield 2.8% via DBS Bank and HL Bank in a Regulation S deal.

Fund managers picked up 54%, banks and insurers 35% and private banks 11%.

The Wanchai, Hong Kong-based investment holding company conducts business in four business segments: motor vehicle distribution, heavy commercial vehicle and industrial equipment distribution, property rentals and development and other operations.

Book for Bulgaria

Bulgaria’s €1.493 billion 2.95% notes due Sept. 3, 2024 drew an order book of €3.7 billion, with 37% from the United Kingdom, 30% from Europe, 18% from Germany and Austria and 15% from Bulgaria.

Asset managers picked up 61%, banks and private banks 17%, pension funds and insurers 15% and others 7%.

The notes priced Thursday at 99.085 to yield mid-swaps plus 160 bps with Citigroup, HSBC and JPMorgan in a Regulation S deal.

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