Emerging market bond spreads tighten; Cikarang Listrindo prices; primary calendar builds

By Paul A. Harris

Portland, Ore., Feb. 13 - Emerging markets spreads tightened during the European and New York sessions, sources said on Monday.

Cash bonds and synthetics improved along with stock prices, with most of the major stock indexes on both sides of the Atlantic finishing in the black, apparently unfazed by news that Standard & Poor's lowered the credit rating of 15 Spanish banks.

Abu Dhabi-based Dolphin Energy Ltd. LLC's recently priced 5½% notes due 2021 (A1//A+) were seen as high as 102.75 during the London session, before fading late in the afternoon, according to a trader who works the Central European and Middle Eastern credit spaces.

Dolphin priced the $1 billion issue at par last week.

There was a solid tone to a very active market, which is still being driven by technical forces, the trader said, adding that there was a good two-way flow on Monday.

In the primary market, Indonesia's PT Cikarang Listrindo priced a $500 million issue of seven-year notes on top of tightened price talk, while Brazilian air carrier Gol Linhas Aereas Inteligentes SA (B1/BB-/BB-) mandated JPMorgan to set up Tuesday investor meetings ahead of a possible deal.

Cikarang prices $500 million

Indonesia's Cikarang Listrindo announced the pricing of a $500 million issue of 6.95% seven-year senior notes (Ba2/BB-) at par.

The yield printed on top of final price talk, which had tightened from earlier guidance of 7% plus or minus 5 basis points.

Barclays Capital and Credit Suisse were the managers.

Gol Linhas sets meetings

Brazilian air carrier Gol Linhas Aereas Inteligentes (B1/BB-/BB-) mandated JPMorgan to set up investor meetings on Tuesday in Asia and Europe ahead of a possible dollar-denominated Rule 144A and Regulation S debt offering.

Moody's Investors Service assigns its B1 rating to the issuer. Both Standard & Poor's and Fitch Ratings assign their respective BB- ratings to Gol Linhas.

The discount carrier is based in Sao Paulo.

Elsewhere in the primary market, Qatar National Bank SAQ (Aa3/A+/A+), which last week mandated Barclays Capital, Citigroup, HSBC, QNB Capital and Standard Chartered Bank, is expected to come with a five-year bullet sized at up to $1 billion, according to a London-based trader.

The Regulation S offering, to be issued under the bank's $7.5 billion euro medium-term note program, could come yielding in the low-to-mid 3% range, the source added.

Meanwhile China's Cheung Kong Infrastructure Holdings Ltd. (/A-/A-) postponed its sale of $500 million fixed-rate callable perpetual securities due to a delay in documentation.

Goldman Sachs and JPMorgan are the bookrunners.

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