GarantiBank, Afreximbank notes dip; Novatek, Bank Asya selling some assets

By Christine Van Dusen

Atlanta, July 2 – Turkey’s Turkiye Garanti Bankasi (GarantiBank)’s new issue of notes suffered in trading on an otherwise firm Wednesday for emerging markets assets, even as investors focused on the continuing conflict in Iraq and extremist activity in East Syria.

Garanti’s new deal – a €500 million issue of 3 3/8% notes due 2019 that priced at 99.436 to yield 3˝% – opened down 50 cents on Wednesday morning, a London-based analyst said.

BBVA, Commerzbank, Deutsche Bank, ING and Societe Generale were the bookrunners for the Regulation S deal.

Cairo-based African Export-Import Bank’s (Afreximbank) 2018s also fell in trading, moving down about 4 points since a downgrade from Standard & Poor’s.

Russia’s OAO Novatek received some attention on Wednesday on the news that the independent gas producer could be selling as much as $3 billion-worth of its assets, the analyst said.

“We remain comfortable with Novatek’s fundamentals,” she said. “We note that Novatek’s 2021s currently trade cheap to the curve, offered at z-spread plus 326 basis points, versus z-spread plus 299 bps for the Novatek 2022s.”

Also on Wednesday, Indonesia launched a $1 billion issue of notes due in seven years at mid-swaps plus 195 bps, a market source said.

BofA Merrill Lynch, Deutsche Bank and Citigroup are the bookrunners for the deal.

And Chile-based utility company Colbun SA talked a $500 million issue of 10-year notes in the Treasuries plus 205 bps area, a market source said.

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

InRetail sells bonds

Late on Tuesday, Peru’s InRetail Shopping Malls priced a $350 million issue of 6˝% notes due July 9, 2021 at 99.309, a market source said.

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

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

Bank Asya selling units

One trader was eyeing Turkey’s Asya Katilim Bankasi AS (Bank Asya), which is following through on plans to sell stakes in two of its units.

The plans were first announced last month, and the proceeds are expected to be somewhat small.

“So we do not expect much impact on spreads,” she said. “But we do note that equity markets have responded positively this morning to the news.”

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