Primary hosts China Merchants, Azerbaijani bank; market bounces; roadshow announcements abound

By Christine Van Dusen

Atlanta, June 5 – China Merchants Bank Co. Ltd. and International Bank of Azerbaijan were among the issuers to print new notes on a Wednesday that saw a flurry of roadshow announcements amid a market upswing.

“The market is bouncing this morning,” a London-based analyst said. “Solid start, with better buying, especially of sukuks.”

Bonds from Latin America started off on the slower side in the morning, then picked up steam as the session went on, a New York-based trader said.

Colombia’s Ecopetrol SA, for one, saw its 2023s and 2043s move higher into the close to finish at nearly at 113, giving a lift to other credits, he said.

Brazil’s Braskem SA was another standout, he said, as Latin American credits generally showed great resilience amid Treasury moves.

Sovereigns from Latin America rallied on Wednesday, another New York-based trader said.

Bonds from Venezuela, particularly the 2027s, jumped higher during the session. And PDVSA’s 2017s ticked up to 93½, he said.

In deal-related news, numerous issuers planned roadshows. On that list were China Metallurgical Group Corp., Kenya, Brazil’s Odebrecht SA, Argentina’s Mastellone Hermanos SA, Turkey’s Turk Telekomunikasyon AS, Dubai’s Emaar Malls Group, Nigeria’s Access Bank plc, China’s 21Vianet Group, China’s Zhuhai Huafa Group Co. Ltd. and Jamaica.

In its new deal, International Bank of Azerbaijan priced a $500 million issue of 5 5/8% notes due June 11, 2019 at par to yield 5 5/8%, a market source said.

The notes were talked at a yield of 5¾%.

Citigroup and JPMorgan were the bookrunners for the Regulation S deal.

China Merchants prints notes

China Merchants Bank Co. Ltd. priced $500 million 2 3/8% notes due June 12, 2017 (Baa1) at 99.713 to yield 2.475%, or Treasuries plus 167.5 basis points, a market source said.

BofA Merrill Lynch, BNP Paribas, Citigroup, HSBC, JPMorgan, Standard Chartered Bank (Hong Kong) and Wing Lung Bank led the Regulation S deal.

The issuer is based in Shenzhen, China.

Roadshow for Chinese corporate

China Metallurgical Group set out on Thursday for a roadshow to market a dollar-denominated issue of Regulation S notes, a market source said.

BOC International, Morgan Stanley and ICBC (Asia) are the bookrunners for the deal.

The bonds will be issued by indirect subsidiary MCC Holding (Hong Kong) Corp. Ltd.

Kenya, Odebrecht roadshows

Kenya embarked on a roadshow on Thursday for a dollar-denominated issue of notes, a market source said.

Barclays, JPMorgan, Standard Bank and QNB Capital are leading the marketing trip for the Rule 144A and Regulation S deal.

And Brazil’s Odebrecht set out on Thursday on a roadshow to market a perpetual issue of notes denominated in dollars, a market source said.

HSBC, Itax BBA and Santander are the global coordinators. Morgan Stanley, BB Securities and Bradesco BBI are the bookrunners for the Rule 144A and Regulation S deal.

Roadshows ahead

Argentina-based dairy company Mastellone Hermanos has planned a roadshow for a dollar-denominated issue of notes via BofA Merrill Lynch and Deutsche Bank Securities, a market source said.

The Rule 144A and Regulation S roadshow will begin June 10.

And Singapore’s Oversea-Chinese Banking Group will set out on Friday for a roadshow to market a dollar-denominated issue of 10-year notes, a market source said.

HSBC, JPMorgan and OCBC are the bookrunners for the Rule 144A and Regulation S deal.

Turk Telekom markets notes

Turkey’s Turk Telekom set out on Thursday for a roadshow to market a dollar-denominated issue of benchmark-sized notes, a market source said.

A Rule 144A and Regulation S transaction is expected to follow.

And Dubai’s Emaar Malls Group will commence investor meetings on June 8 for a dollar-denominated issue of Islamic bonds, a market source said.

Dubai Islamic Bank, Emirates NBD Capital, First Gulf Bank, Mashreq, Morgan Stanley and National Bank of Abu Dhabi are the bookrunners for the Regulation S sukuk.

Access Bank sets roadshow

Nigerian lender Access Bank will set out on June 9 for a roadshow to market a dollar-denominated issue of notes, a market source said.

Deutsche Bank, Citigroup and Goldman Sachs are the bookrunners for the Rule 144A and Regulation S deal.

China-based internet data center services provider 21Vianet Group has mandated Barclays to arrange investor meetings for a renminbi-denominated issue of notes, a market source said.

The Regulation S roadshow will begin on Friday.

Zhuhai Huafa marketing trip

China’s Zhuhai Huafa Group will set out on June 9 for a roadshow in Hong Kong and Singapore to market an issue of renminbi-denominated notes, a market source said.

ABC International, Agricultural Bank of China (Hong Kong branch), Agricultural Bank of China (Singapore branch) and Oversea-Chinese Banking are the bookrunners for the Regulation S deal.

The notes will be issued by Hong Kong Huafa Investment Holdings Co. Ltd., a subsidiary of Zhuhai Huafa Group.

Non-deal roadshow for Jamaica

Jamaica has mandated Citigroup to lead a non-deal roadshow starting June 10, a market source said.

The road trip will begin in Los Angeles and travel to New York, Boston, London and Germany before concluding on June 18 in Amsterdam and Europe.

Temir Zholy does deal

On Wednesday, Kazakhstan’s Temir Zholy Finance BV priced a two-tranche issue of CHF 200 million notes due June 20 of 2019 and 2022, a market source said.

The deal included CHF 100 million 2.59% notes due 2019 that priced at par to yield 2.59%, or mid-swaps plus 225 bps.

The CHF 100 million issue of 3.638% notes due 2022 priced at par to yield 3.638%, or mid-swaps plus 280 bps.

Credit Suisse, Deutsche Bank, HSBC, Halyk Finance and UBS were the joint bookrunners for the Regulation S deal.

Temir Zholy is an Astana, Kazakhstan-based railway operator.

Alfa brings new issue

Also on Wednesday, Russia’s OJSC Alfa Bank sold €350 million 5½% notes due June 10, 2017 at par to yield 5½%, or mid-swaps plus 505.2 bps, a market source said.

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

Alfa Bank, Commerzbank and UBS were the bookrunners for the Regulation S offering, which was issued by Alfa Holding Insurance plc (Ireland).

Alfa Bank is a commercial lender based in Moscow.

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