Isbank, PTA price notes; roadshows ending for next week’s deals; South Africa bonds better

By Colin Hanner

Chicago, April 21 – Before a swath of new emerging markets issues price early next week, Turkiye Is Bankasi AS and Eastern and Southern African Trade and Development Bank (PTA Bank), two deals that were talked about on Thursday, priced later the same day.

The lookahead for next week will see the conclusion of Russian commonwealth roadshows for Credit Bank of Moscow, KOKS Finance DAC, PhosAgro and Metalloinvest Finance, with deals to follow, a market source said. MHP SA will begin a three-day roadshow on Monday.

Isbank upsizes seven-year deal

Turkey’s largest bank, Isbank, priced $750 million seven-year notes (Ba1//BB+) at par to yield 6 1/8% on Thursday, a market source said.

The deal was upsized from $500 million and was overbooked at $1.9 billion, a market source said.

Price talk tightened from an initial 6 3/8% area.

Citigroup, Emirates NBD, Erste Group Bank AG, HSBC, Mizuho Bank Ltd. and Wells Fargo were the joint bookrunners for the deal.

PTA Bank taps add-on deal

Burundi’s Eastern and Southern African Trade and Development Bank, commonly known as PTA Bank, priced a $200 million add-on to its existing $500 million 5 3/8% notes due 2022 at 100.74 to yield 5.2% on Thursday, a market source said.

Price talk tightened to 5.2% from an initial 5.3% area.

The new notes are expected to settle on April 27.

Commerzbank, MUFG and Standard Chartered were the bookrunners for the Regulation S deal.

PTA Bank previously sold $500 million of the 5 3/8% notes, which were issued on March 14. The original notes (Ba1//BB) were priced at 99.46 to yield 5½%.

Eastern and Southern African Trade and Development Bank is a Bujumbura, Burundi-based lender for regional development.

Africa, Venezuela bonds up

In the geopolitical sphere, the first round of France’s election will “undoubtedly in the spotlight,” a market source said, as the results could have implications that span far outside Europe.

Meetings for the IMF and World Bank could further solidify comments from Zambia’s finance minister. Mutati claimed the country could receive $1.6 billion from the IMF, a market source said. Sovereign bonds in the country were up but parred gains due to recent protesting.

Further south, sovereign activity in South Africa saw the country with solid sentiment following the ousting of its former finance minister.

“South African bonds were the outperformers among the emerging markets sovereigns this week, tightening by 20 basis points across the curve in a recovery rally following the removal of Finance Minister Gordhan and the recent downgrades,” a market source said.

Amid Venezuela’s protests that continue to worsen, its bonds were higher during Friday’s session.

Petroleos de Venezuela’s 8½% notes due 2017 were up ¾ point to a 90 bid, 91 offer.

The 9% notes due 2021 were up ¼ point to 52¼ bid, 53¼ offered.

Venezuela’s 7% notes due 2018 were up 1½ points to a 70 bid, 71 offer.

Its 9% notes due 2023 were unchanged at 48 bid, 49 offered.

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