New deal from Aspial; Russia, SECO tighten; Morocco picks leads; Baidu seeks issuance

By Christine Van Dusen

Atlanta, June 3 - Singapore's Aspial Corp. Ltd. sold notes on Tuesday amid a "positive tone" and slightly narrower spreads for most emerging markets assets.

"We are opening relatively unchanged to a touch tighter, with a positive tone across [emerging markets]," a London-based analyst said.

Russia's 2030 bonds were 3 basis points tighter while five-year credit default swap spreads for the sovereign narrowed by 1 bp to 188 bps.

Buyers were seen for Gazprom and VTB's perpetuals, she said, while two-way activity was noted for Sibneft and Turkish corporates.

"Turkey is unchanged," the analyst said.

Bonds from the Middle East, meanwhile, were tighter on Tuesday and buyers were spotted for sukuk.

"Another very busy day with similar dynamics to yesterday, with lower United States Treasury prices, local accounts buyers in the morning and then much more balanced flow in the afternoon," a London-based trader said. "Long-dated bonds had been popular at the back end of last week, however cash prices ticked lower as the day wore on. Of course, on a spread basis they are still, for the most part, holding onto weekly and monthly spread gains."

Case in point, Saudi Electricity Co.'s 2043s and 2044s were 11 bps and 14 bps better on the week, he said.

"Qatar's 2042s and 2040s are 25 bps and 30 bps tighter on the month," he said. "Bahrain continues to trade very well."

In deal-related news, Morocco mandated banks, the Republic of Korea planned a two-tranche deal, Dubai's Emaar Malls Group took steps toward the market, Chile's Banco Penta pondered issuance, and China's Baidu Inc. looked ahead to a dollar deal.

Lat Am volumes lighten

Volumes were lighter and dollar prices, which started Tuesday lower, stabilized by the end of the day for Latin American bonds, a New York-based trader said.

One standout among Latin American corporates was Brazil's Petrobras, another New York trader said. Mexico's Cemex SAB de CV also managed to trade well.

Low-beta sovereign bonds from Latin America finished the session mostly unchanged to slightly tighter, another New York-based trader said.

Mexico's credit default swaps spread closed at 76½ from Monday's 74.

DEWA, Egypt perform

Taking another look at the Middle East, Dubai Electricity and Water Authority's 2018s were 28 bps tighter on the month, the London trader said.

"Also a superb effort," he said.

Another strong performer on Tuesday was Egypt, he said.

The London trader also continued to keep an eye out for the new issue of notes expected from Abu Dhabi-based Etisalat, which set out on Sunday to market an issue of notes.

"If there is a transaction, I would expect it in the middle of next week," he said.

Aspial prints notes

In its new deal, Singapore-based Aspial priced S$85 million 5.05% notes due June 12, 2019 at par to yield 5.05%, a market source said.

DBS was the sole bookrunner for the deal.

The Singapore-based investment holding company manufactures and retails jewelry, engages in property investment, provides building construction and contracting services and offers pawn brokerage services.

Morocco mandates banks

Morocco has mandated BNP Paribas, Commerzbank and Natixis as bookrunners for a euro-denominated issue of notes that will be marketed during a roadshow, a market source said.

The Regulation S marketing trip will begin on Friday.

Korea seeks issuance

Korea is looking to issue euro- and dollar-denominated notes via eight banks, according to a filing from the sovereign.

Barclays, BofA Merrill Lynch, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan, KDB Bank and Samsung Securities are the bookrunners for the Securities and Exchange Commission-registered deal.

The proceeds will become part of the sovereign's Foreign Exchange Stabilization Fund, which is used for selling and purchasing foreign currencies, depositing or lending to the Bank of Korea and others, guaranteeing debt and paying foreign currency debt.

Emaar Malls, Banco Penta deals

Dubai's Emaar Malls Group is planning to issue bonds, a market source said.

And Chile's Banco Penta is looking to issue bonds later this year, a market source said.

No other details were immediately available on Tuesday.

Baidu to issue notes

China's Baidu is planning to issue dollar-denominated notes with bookrunners JPMorgan and Goldman Sachs, according to a company filing with the SEC.

The proceeds from the deal will be used for general corporate purposes.

The notes include a make-whole call.

Baidu is a Chinese-language internet search provider based in Beijing.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.