Beijing Infrastructure gives details, widens in secondary market; Banco Daycoval moves up

By Aleesia Forni

Virginia Beach, March 14 - Bond spreads were generally wider in the emerging markets space on Friday following weaker-than-expected industrial production data out of China and continued tensions regarding the situation in Ukraine.

Despite the overall market's tone, the secondary market saw the recent sale from Beijing Infrastructure Investment Co. Ltd. firm in aftermarket trading.

The company's 3 5/8% five-year notes, which priced on Thursday, were trading 4 basis points tighter at mid-morning.

The notes were quoted 3 bps wider on the day by a second market source later during the session.

The secondary market also saw Brazil's Banco Daycoval SA's 5¾% notes due 2019 move up in trading.

In the primary market, Oversea-Chinese Banking Corp. Ltd. priced A$400 million of three-year floating-rate notes with a coupon of three-month bank bill swap rate plus 65 bps.

Beijing Infrastructure

Beijing Infrastructure's recent new issue traded 6 bps tighter on Friday compared its new issue spread.

A trader quoted the notes at 206 bps bid, 204 bps offered early during the session.

A second trader saw the notes at 209 bps bid later during the session.

The notes were issued by the company's subsidiary, Eastern Creating Investment Holdings Ltd., which priced the $300 million issue (expected: A2/A-/A+) at 210 bps over Treasuries.

The notes sold at 99.683 to yield 3.705%.

RBS, Wing Lung Bank, ICBC (Asia) and ICBC International were the joint lead managers and joint bookrunners for the Regulation S deal.

Banco Daycoval up

Brazil's Banco Daycoval's $500 million of 5¾% five-year notes (Baa3/BB+/BBB-) were quoted at 99 7/8 bid, 100 1/8 offered on Friday.

The notes priced at 99.465 to yield 5 7/8% on Wednesday, according to market sources.

Bradesco BBI, Itax BBA, J Safra Sarasin and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.

The notes sold at the tight end of talk.

The proceeds will be used for general corporate purposes.

Daycoval is based in Sao Paulo.

OCBC new issue

Oversea-Chinese Banking Corp. Ltd. priced A$400 million three-year floating-rate notes (expected: Aa1/AA-/AA-), according to a notice.

The notes will bear interest at the three-month bank bill swap rate plus 65 bps.

OCBC Bank, Commonwealth Bank of Australia, National Australia Bank and Westpac Banking Corp. are the joint lead managers and bookrunners for the deal.

The notes will be issued under the bank's $10 billion global medium-term note program.

Proceeds will be used for general corporate purposes.

Settlement is slated of March 24.

The issuer is a financial group based in Singapore.

Marisa Wong contributed to this review.

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