Vietnam prices $1 billion; Turkey global lira deal ahead; Hungary brings benchmark bonds

By Cristal Cody and Paul A. Harris

St. Louis, Jan. 25 - Thirty straight weeks of inflows to the dedicated accounts continue to power a bid in emerging markets, a U.S. syndicate banker asserted, after Monday's close.

Earlier, the market in Europe was taking its cue from the strong demand for a sovereign deal from Greece.

Although it's an industrialized economy, players last week were sweating a possible default, even though Greek finance authorities assured the investment community of its ability to make good on its obligations.

Greece's €8 billion five-year deal, which came at mid-swaps plus 350 basis points - it was talked at 375 bps - played to more than €25 billion of orders, sources said.

Meanwhile in the real emerging markets, Russia five-year credit default swaps were seen at 178.125 bps mid, 4.125 bps wider during the European afternoon.

Brazil five-year CDS were 3.625 bps wider at 134.625 bps mid.

Vietnam prices $1 billion

In primary market action, the Government of the Socialist Republic of Vietnam (Ba3/BB) priced a $1 billion issue of 6¾% 10-year global bonds at 98.576 to yield 6.95% on Monday.

The yield printed toward the wide end of the 6¾% to 7% price talk.

Barclays Capital, Citigroup and Deutsche Bank were the bookrunners.

The new notes were up a quarter in the secondary market, which surprised a sellside source not involved in the deal, who said that it played to a mere $2 billion order book.

The issuer pushed pricing, the source insisted.

Turkey for Tuesday

Turkey will bring a benchmark offering of 5¼% 10-year bonds to auction on Tuesday.

The deal, expected to be sized at between TRY 1.3 billion and TRY 1.5 billion, is expected to play to an international audience of investors.

Deutsche Bank will manage the sale.

The deadline for non-competitive bids is 8:15 a.m. GMT. Competitive bids are due by 9:45 a.m. GMT.

Hungary dollar-denominated benchmark

The Republic of Hungary (Baa1/BBB/-BBB) is expected to launch and price a benchmark-sized, dollar-denominated offering of 10-year global bonds by mid-week, subject to market conditions, according to market sources.

Citigroup and Deutsche Bank are joint bookrunners for the Securities and Exchange Commission-registered deal.

Banco Pine starts dollar deal

Banco Pine SA kicked off an international roadshow on Monday for its offering of dollar-denominated seven-year Tier 2 fixed-rate notes (expected Ba3).

The Rule 144A and Regulation S offering via joint bookrunners HSBC, Credit Suisse and Espirito Santo Investment will have a roadshow in Asia, Europe and the United States.

Pricing in expected during the Feb. 1 week, subject to market conditions.

Copeinca, via Credit Suisse

Peru's Copeinca ASA will begin a global roadshow on Wednesday for a dollar-denominated offering of notes, according to an informed source.

Credit Suisse has the books for the deal, which will have a roadshow in Asia, Europe and the United States. Santander is joint lead manager.

The offering will price during the Feb. 1 week, subject to market conditions.

The prospective issuer is a leading fishmeal and fishoil producer.

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