Energa, Bank of Shrajah price deals; Qatar Re sets roadshow; Stoneway creeps higher

By Paul A. Harris

Portland, Ore., Feb. 28 – Emerging markets debt traded flat to slightly better on Tuesday, sources said.

Among recent issues, the Stoneway Capital Corp. 10% senior notes due March 1, 2027 have crept higher, according to an investor who took particular note of the coupon.

The deal was 100¾ bid, 101¼ offered on Monday, the investor added.

The $500 million issue (B3/B) from the emerging markets focused company came at par on Feb. 10.

Middle East credit tightened during the European morning then gave it all back during the afternoon, a London-based trader said.

Russia tightened during the European day.

Turkey sold off in the sovereign. The Turkish lira was weaker on the day.

Bank of Sharjah dollar deal

In the new issue market United Arab Emirates-based Bank of Sharjah priced a $500 million issue of 4.23% five-year senior notes (Fitch BBB-) at a 225 basis points spread to mid-swaps.

The spread came on top of final spread talk and through initial talk of mid-swaps plus 250 bps, sources said.

Joint bookrunner JPMorgan will bill and deliver. Bank ABC, Emirates NBD Capital and National Bank of Abu Dhabi were joint bookrunners.

Energa prices tight

Poland’s Energa SA priced a €300 million issue of 2 1/8% 10-year fixed-rate notes at 98.892 to yield 2¼%.

The yield printed at the tight end of the 2¼% to 2.3% final yield talk, the source said, adding that the deal kicked off at 2½% early Tuesday, then tightened to 2.4% prior to the circulation of the official talk.

The deal played to €1.3 billion of orders, the source said.

The tightening of yield talk was a function of strong market technicals, which find too much cash pursuing too little supply.

However demand for the deal was circumscribed considerably by the fact that it is 10-year paper coming into a market that is demonstrating a pronounced appetite for shorter maturities.

BNP Paribas and JP Morgan were the stabilization managers.

Qatar Re roadshow

Qatar Re, the reinsurance unit of Qatar Insurance Co., plans to run a roadshow with fixed income investors this week ahead of a possible dollar-denominated offering of tier II perpetual notes which would come with 5½ years of call protection, a market source said.

BNP Paribas and HSBC are the global coordinators.

The issuer is based in Hamilton, Bermuda.

Elsewhere in the primary market Slovenia and Slovakia finished roadshows on Tuesday, the London-based trader said.

Both have been shopping euro-denominated deals.

Oman has been roadshowing up to $2 billion of five-, 10- and 30-year paper, the trader noted, adding that the issuer is expected to have to pay up a little in order to get its deal across the finish line.

Market technicals favor the issuer, with investors having cash to put to work against a thin-ish calendar.

Order books for recent deals have been pretty good, but not blowouts, the trader said.

There are plenty of mandates out there, the source added.

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