Deals from TAQA, MAF, SMC, others; investors mostly upbeat; Ukraine corporates unchanged

By Christine Van Dusen

Atlanta, April 29 - Abu Dhabi National Energy Co. (TAQA), Dubai's Majid Al Futtaim Holding LLC (MAF) and Philippines-based SMC Global Power Holdings Corp. brought new deals on a fairly positive Tuesday for emerging markets assets.

"Market activity has been limited, given that Japanese markets are closed for Golden week holiday, and investors await the Federal Open Market Committee, payrolls and upcoming market holidays in Europe," according to a report from Barclays. "The impact of Russia-Ukraine crisis is gradually expanding in global markets."

Also printing new notes on Tuesday were Korea Resources Corp., China Power International Development Co., China Overseas Land & Investment Ltd. and China's Lenovo Group Ltd.

In other deal-related news, India's Tata Motors Ltd. and Colombia's Oleoducto Central SA (Ocensa) set talk, Israel's Delek & Avner - Yam Tethys Ltd. was on a roadshow, and China Chengtong Development Group Ltd. mandated leads.

Meanwhile, market sentiment was mostly upbeat, given that the United States' sanctions against Russia were "softer than expected," a London-based analyst said.

Russia's 2030s were up ¾ point on Tuesday from the previous day's close.

"Threats of sanctions on Gazprombank and other major Russian companies were thus proven to be overblown," the analyst said. "But although there will be short-term positive sentiment, we imagine the threat of higher sanctions further down the road will once again begin to weigh on investor minds."

In response, trading of bonds from Ukraine has been limited so far this week, said Svitlana Rusakova of Dragon Capital.

"The market struggled for direction yesterday, initially opening a ½ point lower, then rallying into the green zone" as the market hoped light sanctions against Russia meant a de-escalation of the conflict, she said.

"Corporates were illiquid and mostly unchanged," she said.

Kipco trades up

From the Middle East, Kuwait Projects Co.'s (Kipco) recent issue of 4.8% notes due Feb. 5, 2019 that priced at par traded Tuesday at 103.40 bid, 104 offered, a trader said.

The notes came to the market at mid-swaps plus 314.4 basis points via BNP Paribas, HSBC and JPMorgan in a Regulation S deal.

Dubai slips

The new issue of 5% notes due 2029 from Dubai - priced at par to yield mid-swaps plus 177.1 bps - was quoted Tuesday at 99 bid, 99½ offered, a trader said.

Dubai Investment Bank, Emirates NBD Capital, HSBC, National Bank of Abu Dhabi and Standard Chartered Bank were the bookrunners for the Regulation S deal.

Lebanon moves higher

Lebanon's 5.8% notes due April 14, 2020 that priced at par moved to 100¼ bid, 101 offered on Tuesday, a trader said.

The deal also included a $354.71 million tap of the 6.6% notes due Nov. 27, 2026 that priced at 99.147 to yield 6.7%.

Bank Audi, Byblos Bank and Deutsche Bank were the bookrunners for the Regulation S transaction.

SECO gets a boost

Saudi Electricity Co.'s (SECO) $2.5 billion issue of notes due April 8, 2024 and 2044 received some attention in trading on Tuesday.

The $1.5 billion 4% notes due 2024 that priced at par traded Tuesday at 100.81 bid, 101.31 offered.

The $1 billion 5½% notes due 2044 that priced at par were spotted Tuesday at 102.31 bid, 102.81 offered.

Deutsche Bank, HSBC and JPMorgan were the bookrunners for the Rule 144A and Regulation S deal.

Mubadala trades

Abu Dhabi-based Mubadala Development Co. PJSC's $750 million 3¼% notes due April 28, 2022 that priced at 98.53 traded Tuesday at 98.93 bid, 99.13 offered, a trader said.

The notes came to the market at a yield of 3.462%, or Treasuries plus 120 bps, with BofA Merrill Lynch, Credit Agricole, Deutsche Bank, Goldman Sachs, HSBC and National Bank of Abu Dhabi in a Rule 144A and Regulation S transaction.

TAQA sells notes

Abu Dhabi's TAQA priced $750 million 3 7/8% notes due May 6, 2024 at 99.369 to yield mid-swaps plus 115 bps, a syndicate source said.

The notes were talked at a spread in the 135-bps area.

"That's circa 20 bps wide of the existing '23s, bid-side," a trader said, prior to pricing. "Already we have seen strong interest for orders."

BofA Merrill Lynch, Mitsubishi UFJ Securities, RBS, Societe Generale CIB and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.

As of the early afternoon in Europe, the books totaled $3.75 billion, more than five times oversubscribed, a syndicate source said.

MAF prints bonds

Dubai-based shopping mall developer MAF priced a $500 million issue of 4¾% notes due May 7, 2024 at 99.835 to yield 4.771%, or mid-swaps plus 195 bps, a market source said.

The notes were talked at a spread in the 212.5 bps area before tightening to 195 bps.

Barclays, Credit Agricole, Citigroup, Emirates NBD, HSBC and Standard Chartered Bank were the bookrunners for the deal.

"Small deal, well-known name," a trader said. "The perpetuals have been trading well and the secondary on the 2019s has been doing well."

Primary sees SMC

Philippines-based electricity company SMC Global sold $300 million 7½% perpetual notes at par to yield 7½%, or Treasuries plus 573.6 bps, a market source said.

Merrill Lynch, Credit Suisse, DBS Bank, Deutsche Bank, HSBC, Mizuho Securities and Standard Chartered Bank were the bookrunners for the Regulation S deal.

The proceeds will be used to finance investments in power-related assets and for general corporate purposes.

China Power sells bonds

China Power International sold RMB 2 billion 4½% notes due May 9, 2017 at par to yield 4½%, a market source said.

BOC International, Bank of China, Bank of Communications and ICBC Asia were the bookrunners for the Regulation S deal.

The proceeds will be used for capital expenditures, to repay borrowings, for working capital and for general corporate purposes.

Korea Resources

Korea Resources priced a $340 million issue of 2 7/8% notes due May 7, 2019 at 99.539 to yield Treasuries plus 122.5 bps, a market source said.

The notes were previously talked at a spread of 145 bps to 150 bps.

BofA Merrill Lynch, Citigroup and HSBC were the bookrunners for the Rule 144A and Regulation S deal.

Issuance from China Overseas

China Overseas Land & Investment priced a two-tranche issue of $1 billion notes due May 8, 2024 and 2019, a market source said.

The $450 million 5.95% notes due 2024 priced at 99.554 to yield 6.01%, or Treasuries plus 330 bps. The notes priced tighter than talk, set in the 350 bps area.

The $550 million 4¼% notes due 2019 priced at 99.786 to yield 4.298%, or Treasuries plus 255 bps, following talk in the 270 bps area.

Citigroup, Goldman Sachs, JPMorgan, HSBC, BOC International and Deutsche Bank were the bookrunners for the Regulation S deal.

Lenovo does deal

China-based technology company Lenovo sold $1.5 billion 4.7% notes due May 8, 2019 at 99.819 to yield 4.741%, or Treasuries plus 300 bps, a market source said.

The notes were talked at a spread in the 305 bps area.

Citigroup, ANZ, Bank of China, Barclays, BofA Merrill Lynch, BNP Paribas, Credit Suisse, DBS Bank Ltd., Mitsubishi UFJ Securities, Mizuho Securities, RBS and Standard Chartered Bank were the joint lead managers and joint bookrunners for the Regulation S deal. Citigroup was the global coordinator.

Proceeds will be used for general corporate purposes, including working capital, and to fund any acquisition activities.

Talk from Shui On

China's Shui On Land Ltd. set talk for a two-tranche issue of dollar-denominated notes, a market source said.

The dollar notes due in four years were talked at a yield in the 8¾% area.

The dollar notes due in six years were talked at a yield in the 9¾% area.

Standard Chartered Bank and UBS are the bookrunners for the Regulation S notes, which could price as early as Tuesday.

The proceeds will be used to pay the cash portion of the considerations payable under the company's dollar exchange offer and renminbi exchange and tender offer. The proceeds also will be used to pay any other expenses associated with the offer and for capital expenditures.

Tata, Ocensa give guidance

India-based Tata Motors set initial talk in the 6% area for its dollar-denominated issue of notes due in seven years, a market source said.

ANZ Banking Group, BofA Merrill Lynch, Citigroup and HSBC are the bookrunners for the Regulation S deal, which is expected to price on Wednesday.

And Colombia-based oil company Ocensa set initial talk in the Treasuries plus 225 bps area for its upcoming issue of $500 million seven-year notes.

Citigroup and HSBC are the bookrunners for the Rule 144A and Regulation S deal.

Delek on roadshow

Israel-based fuel company Delek & Avner is on a roadshow until May 7 for a total of $2 billion notes due in December of 2016, 2018, 2020, 2023 and 2025, a market source said.

The deal will include $400 million notes due 2016, $400 million due 2018, $400 million due 2020, $400 million due 2023 and $400 million due 2025.

The proceeds will be used to repay indebtedness and for general corporate purposes.

Citigroup, JPMorgan and HBC are the bookrunners for the Rule 144A and Regulation S deal.

Chengtong picks bookrunners

China Chengtong Development has mandated ABC International, Agricultural Bank of China (Hong Kong branch) and Agricultural Bank of China (Singapore branch) as bookrunners for a renminbi-denominated issue of notes, a market source said.

The bonds will be Regulation S-registered.

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