Etihad Airways prices add-on; SP Power, Pakistan on deck; thin trading in Middle East

By Aleesia Forni

Virginia Beach, Sept. 17 – Abu Dhabi’s Etihad Airways PJSC and Snow Bird (Hong Kong) Holding Co. Ltd. priced bonds on Thursday as the Federal Reserve announced that it would hold interest rates steady in September and emerging markets bonds rebounded from weakness earlier during the week.

In forward calendar news, SP Power Assets Ltd. announced plans to begin a series of investor meetings ahead of a possible capital markets transaction, and Pakistan mandated bookrunners for a proposed dollar deal.

In other news from that region, trading was thin in Middle Eastern bonds on Thursday.

A source noted buying in Saudi Electricity Co.’s 4.211% bonds due 2022 and 4% bonds due 2024.

“[Perpetuals] remain a real mixed bag,” the source said, adding that perpetual bonds from Emirates NBD were seeing a sell-off during the session, with the 5¾% bonds around 110 basis points wider on the bond.

National Bank of Abu Dhabi’s perpetual bonds are mostly unchanged on the month.

Etihad Airways prices tap

Abu Dhabi’s Etihad Airways priced a $200 million add-on to its bonds (//B-) due 2020 at par to yield 6 7/8%, according to an informed source.

The total issue size is now $700 million.

Bookrunners were Goldman Sachs, ADS Securities and Anoa Capital.

Snow Bird new issue

Meantime, Snow Bird priced RMB 400 million of 12% bonds due September 2018 on Thursday, according to a company news release.

Haitong International Financial Products Ltd. was the underwriter.

The bonds are guaranteed by Snowbird AG.

Proceeds will be used for financing future growth and providing sufficient working capital for the Chinese operational company, especially in China and Europe.

Closing is expected during the Sept. 21 week.

Snowbird is a Hamburg, Germany-based processor and manufacturer of down products.

SP Power on deck

SP Power Assets (Aa2/AA) said that it will begin a roadshow during the Sept. 21 week for a possible dollar-denominated offering of bonds, according to a market source.

The meetings will take place in London, New York, Boston and Hong Kong.

Deutsche Bank and Morgan Stanley are the arrangers.

Based in Mapletree Business City, Singapore, SP PowerAssets is a member of Singapore Power Group, which provides electricity and gas transmission and distribution services.

Pakistan taps leads

Pakistan also joined the forward calendar on Thursday, mandating Citigroup, Deutsche Bank and Standard Chartered (//B) ahead of a possible dollar-denominated offering of bonds, a market source said.

The notes will be sold via Rule 144A and Regulation S deal.

Latvia details sale

Details of Republic of Latvia’s €500 million offering of 1 3/8% 10-year notes (A3/A-) emerged on Thursday.

The notes sold at 99.316, or mid-swaps plus 35 bps, on Wednesday, according to a market source.

Pricing was at the tight end of guidance set in the 35 bps to 40 bps range over mid-swaps following initial talk in the mid-swaps plus 40 bps area.

DNB, HSBC and Natixis are the bookrunners.

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