Damac, Oil India price; Mubadala, Saudi Arabia plan deals; LatAm ‘quiet’ ahead of Easter

By Colin Hanner

Chicago, April 11 – New deals in the emerging markets gravitated toward the oil space on Tuesday, with four different issuers sparking interest from investors.

There was a “massive glut of supply hitting the market” during morning trading, particularly Mubadala Development Co. PJSC, Saudi Arabia, Damac Real Estate Development Ltd. and KazMunayGas.

“[It was] a busy day,” a market source said. “We’re all trying to get done because tomorrow things will be quieter with Easter break. It’s actually surprising how much is coming this week because this week is traditionally a quiet week.”

“The underlying market tone is firm on light holiday week flow,” another market source said.

Damac sells $500 million notes

Damac Real Estate Development priced $500 million five-year notes to yield 6¼% on Tuesday, a market source said.

The notes will be issued by Alpha Star Holding III Ltd.

Initial price talk was around 6 3/8%, tightening by 125 basis points at close, the source said.

Bookrunners for the deal were HSBC, BofA Merrill Lynch, Emirates NBD Capital and VTB Capital.

Oil India sells notes

Oil India International Pte. Ltd. priced $500 million 10-year fixed-rate notes on Tuesday at par to yield Treasuries plus 172.5 bps, a market source said.

Final guidance for the notes came in at Treasuries plus 172 bps.

Barclays, Citigroup, DBS Bank Ltd. and Standard Chartered Bank are the joint global coordinators and bookrunners for the deal.

Mizuho Securities and MUFG are also bookrunners.

Orders for the new notes came in at just under $2.6 billion.

The notes will be issued under Regulation S.

Proceeds will go toward repaying foreign currency debt.

Mubadala set to price

Mubadala Development is expected to price $850 million of seven-year senior notes and $650 million of 12-year notes, a market source said, though there was no final pricing as of Tuesday afternoon.

The seven-year notes have a price guidance in the 100 to 105 area, a market source said, while the 12-year notes are hovering in the 140 to 145 area.

A market source said that both set of notes “should be soaked up fairly easily.”

Barclays, HSBC, Natixis, National Bank of Abu Dhabi, Standard Chartered and SMBC Nikko are the bookrunners for the deal.

Saudi Arabia set to price

Saudi Arabia is set to price five- and 10-year notes on Wednesday, a market source said.

“[Saudi Arabia] should over time be soaked up, however, issue size remains key for initial secondary performance,” a market source said. “Although in saying that, [the] book again is huge.”

The five-year notes’ initial price guidance started at 115, and the 10-year deal at 155, around “20 bps back of the convention curve,” a market source said.

“People expect that to tighten,” the source said.

Citibank, HSBC and JPMorgan are the global coordinators for the deal.

BNP Paribas, Deutsche Bank and NCP Capital are the lead managers for the deal.

KazMunyGas to price deal

Kazakhstan-owned oil and gas company KazMunayGas will price a three-tranche deal in the next day, a market source said.

Price guidance for the five-year notes is in the 4 1/8% area, while the 10-year notes are in the 5% to 5 1/8% area.

The 30-year notes are in a 6 1/8% area.

Citibank, Deutsche Bank, UBS and Halyk Finance are the joint bookrunners for the deal.

LatAm ‘quiet’

“Latin America really takes the week off [for Easter],” a market source said. “If anyone’s working, there not expecting to work much longer for the week. A lot of people [will start the weekend] with a half-day Wednesday.”

Latam Airlines Group SA recently-priced $700 million offering of 6 7/8% due 2024 were a “little above 101 on the bid side,” a market source said.

Recent deals in Latin America were faring well on the day, a market source said, adding that “deals had oversubscription, and the market had been quiet before that for a while.”

Petroleos de Venezuela SA, which is expected to pay a $2.1 billion in principal and interest to investors on Wednesday, was down on the session.

PDVSA’s 9% notes due 2021 were unchanged with a 51 bid, 52 offer, down ¾ point.

And the 6% notes due 2024 were similarly unchanged with a 37½ bid, 38½ offer, down 1 point.

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