Primary hosts Isbank, PKO Bank, Korea National Oil, Unibank; roadshows for Equate, Jordan

By Christine Van Dusen

Atlanta, Oct. 17 – Turkey’s Turkiye Is Bankasi AS (Isbank), Poland’s PKO Bank Polski SA, Korea National Oil Corp. and Philippines’ BDO Unibank Inc. sold notes on a busy Monday for emerging markets assets.

“Following Yellen’s comments on Friday, we have seen a steepening of the U.S. Treasury yield curve,” a London-based analyst said. “Looking ahead, it will be a very busy week on all fronts.”

Investors were keeping their eye out for the upcoming issue of notes from Saudi Arabia.

“Saudi Arabia will conclude its investor meetings tomorrow and could approach markets for a $10 billion to $20 billion bond issuance,” the analyst said.

In trading from the Middle East, notes from Oman were active again, with the 2021s trading at 100.62 bid, 100.82 offered and the 2026s moving to 99.62 bid, 99.82 offered, a trader said.

“Overall, a tricky secondary market again,” he said. “Bahrain motors along with a slew of buyers on the 2024s, closing 12 basis points better. The 2028s are up to 102 bid side, tighter by 7 bps.”

Perpetuals were mixed, he said, and some nibbling was seen on Dubai Holding’s 2017s.

“The Qatar sovereign curve is 7 bps to 11 bps wider on the week, with the 2046 trading near a 105 cash price at the close,” he said. “Meanwhile, Lebanon feels very well offered again.”

Looking to Turkey, trading was soft on Monday, “with small selling flows as the market digests supply,” a trader said.

He was referring to the $1.5 billion tap of the sovereign’s 4 7/8% notes due 2026 that priced Friday at 100.982 to yield 4¾%, or Treasuries plus 298.8 bps.

Citigroup, HSBC and JPMorgan were the bookrunners for the Securities and Exchange Commission-registered notes.

The proceeds will be used for general refinancing purposes.

The original $1.5 billion 4 7/8% notes due 2026 priced in March at 98.977 to yield 5%.

Isbank prices notes

In its new deal, Turkey’s Isbank sold $600 million 5½% notes due April 21, 2022 at par to yield 5½%, a market source said.

The notes were talked at a yield in the 5 5/8% area.

BofA Merrill Lynch, Commerzbank, MUFG Securities, National Bank of Abu Dhabi and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.

Isbank is an Istanbul-based lender.

Issuance from Unibank

Philippines’ BDO Unibank priced $300 million 2 5/8% notes due Oct. 24, 2021 at 99.977 to yield Treasuries plus 135 bps, a market source said.

Standard Chartered Bank and UBS were the bookrunners for the Regulation S deal.

Proceeds will be used for general funding and re-lending purposes.

BDO Unibank is a Makati City, Philippines-based bank.

KNOC does deal

Korea National Oil priced a $1 billion issue of notes due Oct. 24, 2021 and 2026 in a Rule 144A and Regulation S deal, a market source said.

The deal included $350 million 2% notes due in 2021 that priced at 99.556 to yield 2.094%, or Treasuries plus 83 bps, following talk in the 85 bps area.

The $650 million 2½% notes due 2026 priced at 99.342 to yield Treasuries plus 80 bps, matching talk.

Citigroup, Goldman Sachs, HSBC, Societe Generale, Korea Development Bank and UBS were the bookrunners for the Rule 144A and Regulation S deal.

Korea National Oil is an oil and gas production and exploration company based in Anyang, South Korea.

PKO Bank prints bonds

Also on Monday, Poland’s PKO Bank Polski priced €500 million 1/8% notes due June 24, 2022 at 99.702 to yield mid-swaps plus 18 bps, a market source said.

Deutsche Bank, JPMorgan, LBBW, PKO Bank Polski and Societe Generale CIB were the bookrunners for the Regulation S deal.

The issuer is a Warsaw-based lender.

Roadshow for Kuwait’s Equate

In other deal-related news Kuwait’s Equate Petrochemical Co. KSCC will set out on Oct. 20 for a roadshow to market a possible issue of dollar-denominated and benchmark-sized notes, a market source said.

Citigroup, HSBC, JPMorgan and NBK Capital are the global coordinators and joint bookrunners. Banca IMI, Mizuho Securities, MUFG and SMBC Nikko are also joint bookrunners for the Rule 144A and Regulation S deal.

The notes are expected to carry a tenor of between five and 10 years.

The roadshow will start in London and travel to Los Angeles and Boston before concluding on Oct. 26 in New York.

Equate is 85% owned by Petrochemical Industries Co. and Dow Chemical and produces essential chemical compounds as the largest petrochemical complex in Kuwait.

“Equate is an interesting one,” a trader said. “Been a clear lack of supply out of Kuwait, so this should be welcome.”

Jordan sets roadshow

Jordan will set out on Wednesday for a roadshow to market a two-tranche issue of notes due in 10 and 30 years, a market source said.

Citigroup and JPMorgan are leading the marketing trip.

The roadshow will end on Oct. 21.

“The previously well placed and fairly technical Jordan 2026 has moved into a different basket now, with possible 10-year and 30-year supply coming up,” a trader said.

© 2015 Prospect News.
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