Bahrain’s new tranches improve on first-day trading; Oman softer; GeoPark, Jujuy price

By Rebecca Melvin

New York, Sept. 14 – Bahrain’s three new issues edged up in trade on Thursday after the Middle Eastern sovereign priced $3 billion of notes in a triple-tranche deal that included an $850 million sukuk and two conventional tranches due 2029 and 2047.

Bahrain’s 5¼% notes due 2025 traded as high as 100.4 after pricing at par. The new sukuk settled at 100.35 on the day, a London-based trader said.

The new Bahrain 6¾% notes due 2029 traded as high as 100.53 during the session and settled around 100.10, while the long-dated new Bahrain note, with a 7½% coupon, moved up to as high as 101¼ before slipping back to the 100.40 area.

The session was “very busy with flow centered on the new Bahrain deals,” the trader said. The paper moved around a bit, strong at the open before slipping back, bouncing and slipping back again, primarily in tandem with U.S. rates.

The Bahrain 2047 bonds were last seen 100.33 bid, 100.53 offered, which was a close off of the highs. But given the moves in Treasuries, the trading was deemed positive and volume was high.

The bonds of the Oman sovereign were a little weaker, possibly on the back of the new Bahrain paper drawing a lot of eyes in the market. Likewise, Qatar and Saudi Arabia were “better offered,” the trader said.

The KSA 2022 and 2027 notes were the ones in the curve that widened.

Also among new issuance in the Middle East, Qatar National Bank SAQ announced that it priced $630 billion of 5% bonds due 2047 under Regulation A for the Taiwan market.

The issuance was made under QNB’s euro medium-term note program in the Taiwanese capital markets. Standard Chartered Bank arranged the deal.

Elsewhere, Russia’s OJSC Novolipetsk Steel, or the NLMK Group, through Steel Funding SAC said it planned to price dollar-denominated seven-year notes in addition to dollar-denominated loan participation notes as reported last week.

ING Bank NV, London Branch, J.P. Morgan Securities plc, Societe Generale and UniCredit Bank AG are joint dealer managers for the offers.

NLMK is tendering for $800 million of its 4.45% loan participation notes due 2018 for a purchase price equal to $1,017.50 per $1,000 in principal amount and $500 million of its 4.95% loan participation notes due 2019 for $1,053.75 per $1,000 in principal.

In Asia, Wynn Macau Ltd. priced $1.35 billion in two tranches under Rule 144A and Regulation S.

The Wynn Macau $600 million senior notes due 2024 priced at par to yield 4 7/8%, and the $750 million senior notes due 2027 priced at par to yield 5½%.

The 2024 notes are non-callable for three years until Oct. 1, 2020, and the 2027 notes are non-callable for five years until Oct. 1, 2022.

In Latin America, Buenos Aires-based GeoPark Ltd. priced an upsized $425 million of 6½% seven-year senior secured notes under Rule 144A and Regulation S on Thursday.

The oil and gas exploration company initially expected the deal to be $325 million in size.

Proceeds are being used to repurchase $300 million of the 7½% senior notes due 2020 issued by its wholly owned subsidiary.

And Argentina’s Jujuy Province placed $210 million of five-year 8 5/8% green bonds, the first of their kind placed by an Argentine government body, and the issue was 3.4 times oversubscribed.

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