Tianjin Binai, NongHyup Bank issue notes; EM roadshows lined up; Kogas active; Vale widens

By Christine Van Dusen

Atlanta, July 15 – China’s Tianjin Binhai New Area Construction & Investment Group Co. Ltd. and South Korea’s NongHyup Bank sold notes on a subdued Wednesday morning – which, on news from Greece, gave way to a more dramatic afternoon – as economic data from China came in better than expected but still couldn’t boost the equities market.

Bonds from China were unchanged to 2 basis points wider at the end of the Asian session on Wednesday, while Korea was unchanged and India was unchanged to 3 bps tighter, a London-based trader said.

“The focus today was mostly on new issues, with deals finally pricing with a decent concession,” he said.

The new issue of notes that Korea Gas Corp. (Kogas) priced on Tuesday – $500 million 3½% notes due 2025 that priced at 99.824 to yield Treasuries plus 110 bps – traded at 104 bps but “soon lost steam and leaked back to reoffer,” he said.

Barclays, BofA Merrill Lynch, Deutsche Bank, HSBC, Mizuho Securities and UBS were the bookrunners for the Rule 144A and Regulation S deal.

The market’s mood changed during the afternoon, when rioters in Greece hit the streets, sending U.S. Treasuries jumping 50 bps, a trader said.

“The market remains resilient, but dealers probably pulled back another 1 bp to 2 bps to close a volatile day,” he said.

Meanwhile, Latin American bonds saw some better buyers, a New York-based trader said.

Brazil-based Petroleo Brasileiro SA’s bonds were “locked in a range,” he said, while Vale SA’s spreads widened more than 10 bps on the news of a cut in production.

In other news from the region, Pacific Rubiales Energy Corp. released second-quarter operational results that were “not terrible” but just added to the current “malaise,” he said. In response, the company’s bond curve moved ½ point to 5/8 point lower.

Shanghai Construction tightens

In other trading, Shanghai Construction Group Co. Ltd.’s new $400 million 3¾% notes due 2020 that priced at 99.527 to yield 3.855%, or Treasuries plus 220 bps, moved to tights of 215 bps before moving to 221 bps. The notes closed the Asian session at 222 bps bid, 219 bps offered.

Haitong International, HSBC, ANZ and Bank of China were the bookrunners for the Regulation S deal.

The final book totaled $3.25 billion from 197 accounts, with Asian accounts taking 92% of the deal and Europe 8%. Banks picked up 43%, fund managers 38%, sovereign wealth funds 10%, private banks 4% and insurers and pension funds 5%.

Kazakhstan trades

Investors were also paying attention to the new notes from Kazakhstan, a two-tranche issue of $4 billion notes due in 2025 and 2045 that came to the market Tuesday in a Rule 144A and Regulation S deal.

Citigroup, JPMorgan, Kazkommerts Securities and Halyk Finance were the bookrunners.

The deal included $2.5 billion notes due in 2025 that came to the market at Treasuries plus 285 bps and $1.5 billion notes due in 2045 that came to the market at Treasuries plus 335 bps.

“The 30-year, with its more digestible $1.5 billion issue size, is holding a touch better at 98.75 bid versus 99.049,” a trader said. “These should both perform, given how the existing curve was trading, and the lack of supply in [emerging markets].”

Tianjin Binhai prices bonds

In its new deal, China’s Tianjin Binhai printed a two-tranche issue of $800 million notes due July 23, 2018 and 2025, a market source said.

The deal included $300 million 3.1% notes due in 2018 that priced at 99.411 to yield Treasuries plus 225 bps.

The $500 million 4.126% notes due in 2025 priced at 99.436 to yield Treasuries plus 245 bps.

DBS Bank, Bank of China, HSBC, Standard Chartered Bank and Shanghai Pudong Development Bank were the joint global coordinators, joint bookrunners and joint lead managers. ICBC, China Construction Bank and Wing Lung Bank were joint bookrunners and joint lead managers for the Regulation S deal.

NongHyup Bank sells notes

South Korea’s NongHyup Bank priced $300 million 2 7/8% notes due July 22, 2020 at 99.894 to yield 2.898%, or Treasuries plus 120 bps, a market source said.

The notes were initially talked at a spread in the 140-bps area.

Citigroup, Commerzbank, HSBC and Societe Generale CIB were the bookrunners for the Regulation S deal.

NongHyup Bank is a Seoul, South Korea-based agricultural and commercial credit and banking services company.

Rustavi Azot on roadshow

Georgia’s Rustavi Azot LLC set out on Wednesday for a roadshow to market a debut issue of dollar-denominated notes, a market source said.

Citigroup and Galt & Taggart are the bookrunners for the Regulation S deal.

The nitrogen fertilizer manufacturer is based in Rustavi, Georgia.

KNM markets notes

Malaysia’s KNM Group Bhd. is on a roadshow for a Singapore dollar-denominated issue of notes, a market source said.

BNP Paribas, DBS Bank and HL Bank are the bookrunners for the deal, part of the company’s S$300 million multicurrency medium-term note program.

The roadshow began on Wednesday.

The issuer is a Kuala Lumpur-based investment holding company with subsidiaries in integrated systems design and engineering, international procurement and manufacturing of process equipment for the oil, gas and petrochemical industries.

Roadshow for CCB Financial

China’s CCB Financial Leasing Corp. Ltd. is marketing an issue of dollar-denominated notes during a roadshow that began on Wednesday, a market source said.

CCB International, HSBC, Morgan Stanley and Standard Chartered Bank are the joint global coordinators, joint bookrunners and joint lead managers.

ANZ, Citigroup, DBS Bank and UBS are joint bookrunners and joint lead managers.

The roadshow will be held in Hong Kong, Singapore and London.

A Regulation S deal is expected to follow.

The issuer is based in Beijing.

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