Yapi Kredi holds in; Oman will hit the road; Nigeria plans deal; UOB prints covered bonds

By Christine Van Dusen

Atlanta, Feb. 23 – Turkey-based Yapi ve Kredi Bankasi AS (Yapi Kredi) and other recent new issues saw activity in the secondary market on Thursday as Oman announced a roadshow and the Nigeria lined up another new deal.

Yapi Kredi’s new $600 million 5¾% notes due 2022 that priced at par to yield Treasuries plus 383.7 basis points held in well on Thursday, a trader said.

The notes were initially talked in the 6 1/8% area.

“Despite the heavy trading at launch and the overly generous allocations, bonds have held in well,” he said. “If we had not seen the wider market rally then things could have turned ugly, but for now, bonds are trading at 99.75 bid, 99.90 offered and stable.”

Oman will set out on Friday for a roadshow to market its upcoming issue of up to $2 billion of bonds, a market source said.

The bonds are likely to be multi-tranche and could carry tenors of five, 10 and 30 years.

The proceeds from the Rule 144A and Regulation S deal will be used to address the sultanate’s budget deficit.

And Nigeria could issue another $500 million of bonds, a market source said.

Other details on the new deal were not available on Thursday.

Earlier this month the sovereign priced $1 billion of notes due in 2032 at par to yield 7 7/8%, following talk in the 8½% area.

Equate trades

In other trading on Thursday, the recent notes from Kuwait’s Equate Petrochemical Co. KSCC – $500 million 3.944% Islamic bonds due Feb. 21, 2024 that priced at par to yield mid-swaps plus 175 bps – received some attention, a trader said.

On Thursday the notes were seen at 100.37 bid, 100.62 offered. The company’s 3% 2022s were spotted at 97 bid, 97½ offered. And the 4¼% notes due 2026 traded at 99½ bid, 100¼ offered.

The notes were talked at a spread in the mid-swaps plus 210 bps area

Citigroup, HSBC, JPMorgan, KFH Capital and NBK were the global coordinators and – with Mizuho, MUFG, National Bank of Abu Dhabi and SMBC Nikko – joint bookrunners for the deal.

In October the issuer priced $2.25 billion of senior notes in two tranches, with $1 billion 3% notes due 2022 pricing at a 195 bps over mid-swaps. A $1.25 billion tranche of 4¼% notes due 2026 priced at mid-swaps plus 270 bps.

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

Saudi Arabia sees action

Saudi Arabia’s 2 3/8% notes due in 2021 that priced at 99.007 to yield 2.588%, or Treasuries plus 135 bps, traded Thursday at 98.52 bid, 98.62 offered.

The 3¼% notes due in 2026 that priced at 98.679 to yield 3.407%, or Treasuries plus 165 bps, traded Thursday at 96.45 bid, 96½ offered.

And the 4½% notes due in 2046 that priced at 98.015 to yield 4.623%, or Treasuries plus 210 bps, were spotted Thursday at 97.56 bid, 98.06 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.

The proceeds will be used for general domestic budgetary purposes.

UOB sells two tranches

On Wednesday, Singapore’s United Overseas Bank Ltd. priced $500 million of 2 1/8% covered bonds due 2020 and €500 million of 1/8% covered bonds due 2022, according to a company filing and a market source.

The dollar piece came to market at 99.734 to yield Treasuries plus 102.5 bps. The euro bonds came at 99.498 to yield Bunds plus 82.5 bps.

Deutsche Bank, DZ Bank, HSBC, UBS and UOB were the bookrunners for the deal.

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