Albaraka Turk, Al Hilal, Czech Export, China Construction banks do deals; roadshows ahead

By Christine Van Dusen

Atlanta, June 24 – Turkey’s Albaraka Turk Katilim Bankasi AS, Abu Dhabi-based Al Hilal Bank, Ceska Exportni Banka AS (Czech Export Bank) and China Construction Bank (Asia) Corp. Ltd. sold notes on Tuesday as sentiment improved on the news that pro-Russia rebels would honor a ceasefire in Ukraine.

“Another strong open in [emerging markets] this morning,” a London-based analyst said.

In trading, the new issue of notes from Russia-based lender OAO Sberbank – 3.3524% notes due 2019 that priced at par to yield mid-swaps plus 260 basis points – performed well, tightening about 15 bps.

Barclays, BNP Paribas, Deutsche Bank and Sberbank CIB were the bookrunners for the Regulation S deal.

“Elsewhere, Russia ‘30s are up a ½-point this morning,” she said. “Dubai credit is under a little pressure this morning,” the analyst said.

Looking to Latin America, bonds opened fairly close to the previous day’s levels, with spreads just a touch tighter, a New York-based trader said.

Colombia’s Bancolombia SA, which recently had been trading with a weak tone, moved higher on Tuesday, he said. And buyers outpaced sellers during the morning.

In deal-related news, several issuers set talk, including Slovenia’s Nova Ljuljanksa Banka, China’s Hua Xia Bank and Brazil’s Globoaves Finance SA.

And roadshows were underway or ahead for Rolta India Ltd., Peru’s InRetail Shopping Malls, China’s Hang Seng Bank (China) Ltd. and Indonesia.

Albaraka Turk prints notes

In its new deal, Turkey’s Albaraka Turk sold $350 million 6¼% notes due June 30, 2019 at par to yield 6¼%, or mid-swaps plus 457.4 bps, a market source said.

The notes were talked at a yield of 6 1/8% to 6¼%, following initial guidance in the low-6% area.

BNP Paribas, Emirates NBD, Standard Chartered Bank and QInvest are the bookrunners for the Regulation S deal.

The notes were issued by Bereket Varlik Kiralama AS, which entered into a Murabaha agreement with Istanbul-based lender Albaraka Turk to complete the deal.

Al Hilal prices bonds

Abu Dhabi-based Al Hilal Bank priced $500 million 5½% perpetual notes at par to yield 5½%, a market source said.

The Islamic bonds were initially talked at a yield in the 6% area.

HSBC, Emirates NBD, Standard Chartered Bank, Citigroup, National Bank of Abu Dhabi and Al Hilal Bank were the bookrunners for the Regulation S offering.

The lender is owned by the Abu Dhabi government.

Czech bank sells notes

Czech Export Bank priced €250 million floating-rate notes due July 2, 2021 at par to yield Euribor plus 50 bps, a market source said.

Goldman Sachs and JPMorgan are the bookrunners for the Regulation S deal.

Chinese lender does deal

China Construction Bank printed a $400 million issue of 3¼% notes due July 2, 2019 at 99.854 to yield 3.282%, or Treasuries plus 160 bps, a market source said.

The notes priced tighter than talk, set at 165 bps.

Bank of China (Hong Kong), BofA Merrill Lynch, CCB International, HSBC and Standard Chartered Bank were the bookrunners for the Regulation S deal.

The bank is based in Beijing.

Initial guidance released

Slovenia’s Nova Ljuljanska Banka set initial talk in the 3 1/8% area for its €300 million issue of notes due July 3, 2017, a market source said.

BofA Merrill Lynch, Commerzbank and UniCredit are the bookrunners for the Regulation S deal.

The lender is based in Ljubljana, Slovenia.

Hua Xia sets talk

China’s Hua Xia Bank set talk in the 5¼% area for a renminbi-denominated issue of three-year notes, a market source said.

Deutsche Bank is the bookrunner for the Regulation S deal.

The proceeds will be used to refinance existing indebtedness, optimize the structure of the balance sheet and to support the development of business and operations.

Guidance from Globoaves

Brazil’s Globoaves Finance set talk in the 11% area for its upcoming issue of $200 million notes due in five years, market source said.

BCP Securities, BTG Pactual and Santander are the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used to repay short-term debt and for general corporate purposes.

A roadshow ends on Wednesday.

The issuer is part of Globoaves Group, an egg, animal feed and other foods company based in Cascavel, Brazil.

Roadshow for Rolta India

Rolta India has mandated Barclays and Citigroup to lead a roadshow starting Wednesday, a market source said.

No other details were immediately available on Tuesday.

Rolta India is a technology services company based in Mumbai.

InRetail markets issue

Peru’s InRetail Shopping Malls set out on Tuesday for a roadshow to market a dollar-denominated issue of notes, a market source said.

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

The roadshow began in Lima and Santiago and will travel to Switzerland, Los Angeles and London before concluding on June 30 in Boston and New York.

The issuer is a member of the Lima, Peru-based IFH Peru Ltd. group of companies, which focus on financial and commercial support services.

Hang Seng on roadshow

China’s Hang Seng Bank embarked on a marketing trip on Tuesday for a renminbi-denominated issue of notes, a market source said.

HSBC is the bookrunner for the Regulation S deal.

Hang Seng is a Hong Kong-based commercial and investment bank.

Marketing trip for Indonesia

Indonesia will set out on Thursday for a roadshow to market a euro-denominated issue of notes, a market source said.

BofA Merrill Lynch, Citigroup and Deutsche Bank are the bookrunners for the Rule 144A and Regulation S deal.

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