Issues from Burgan Bank, Samarco Mineracao, Zhejiang Energy, Guocoland; Turkey widens

By Christine Van Dusen

Atlanta, Sept. 23 – Kuwait’s Burgan Bank SAK, Brazil’s Samarco Mineracao SA, China’s Zhejiang Energy Group (Hong Kong) Ltd. and Singapore’s GuocoLand Ltd. sold notes on Tuesday amid limited flows for most emerging markets assets.

“Ukraine continues to see more positive headlines, with Kiev stating that they were seeing less shelling from the rebels and that prisoner swaps are continuing,” a London-based analyst said. “Russian banks are marginally tighter this morning, with sovereign credit default swaps 2 basis points tighter.”

Turkey moved wider, he said, on the back of the move in rates.

From the Middle East, Abu Dhabi Commercial Bank’s 2019s were underperformers on Tuesday morning, trading at about z-spread plus 105 bps after launching at z-spread plus 87.5 bps, he said.

Some selling was seen for Emirates NBD, a London-based trader said.

“Elsewhere it feels like there were more buyers for Al Hilal Bank, Dubai Islamic Bank, and Abu Dhabi Islamic Bank’s perpetuals ticked higher,” he said, “Sharjah Islamic Bank’s 2024s traded well again, closing at 101.40 bid, 101.65 offered.”

Meanwhile, demand was seen for DPWorld and Dubai sovereign paper, he said.

In other news from the region, market sources were whispering about a possible issue of notes planned by the Dubai International Financial Centre (DIFC).

From Latin America, Brazilian corporates sold better in the Street, a New York-based trader said, but recent new issues were quiet during the morning.

By the end of the day, most names were wider, though Mexico-based Cemex SAB de CV’s curve found some support, he said.

Burgan Bank prints notes

Kuwait’s Burgan Bank priced $500 million 7¼% perpetual notes at par to yield 7¼%, or mid-swaps plus 532.5 bps, a market source said.

The notes were initially talked at a yield in the low- to mid-7% area.

HSBC, Citigroup, JPMorgan and National Bank of Abu Dhabi were the bookrunners for the Regulation S deal.

“The private banking rebate of 25 cents really capped any performance here for this tier 1 bond,” a trader said. “It did a lot of work between 99.80 and 99 7/8, closing at 99.80 bid, 99.90 offered.”

Deal from Samarco Mineracao

Brazil-based mining and iron ore company Samarco Mineracao priced $500 million 5 3/8% notes due Sept. 26, 2024 at 99.732 to yield Treasuries plus 287.5 bps, a market source said.

The notes were talked at a spread in the low-300 bps area.

Mizuho Securities, Citigroup and Itau BBA were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used for general corporate purposes.

Chinese corporate prices bonds

China’s Zhejiang Energy Group printed $300 million 2.3% notes due Sept. 30, 2017 at 99.853 to yield 130 bps over Treasuries, a market source said.

JPMorgan, Standard Chartered Bank, BNP Paribas, Citigroup and HSBC were the bookrunners for the Regulation S deal.

The proceeds will be used for trading, investment and other general corporate purposes.

GuocoLand sells notes

Singapore’s GuocoLand priced S$125 million 3.95% notes due April 1, 2019 at par to yield 3.95%, a market source said.

OCBC was the sole bookrunner for the deal.

GuocoLand is an investment holding company that focuses on real estate properties in Singapore, China, Malaysia and Vietnam.

Datang sets talk

China’s Datang Telecom set final talk at 5.45% to 5½% for its upcoming issue of renminbi-denominated notes due in three years, a market source said.

DBS Bank and Deutsche Bank are the bookrunners for the notes, which will include a change-of-control put at 101.

The issuer is based in Beijing.

Energy Earth on roadshow

China’s Energy Earth (Hong Kong) Co. Ltd. began a roadshow on Tuesday for a renminbi-denominated issue of notes, a market source said.

Barclays is the sole global coordinator for the deal. Barclays and CLSA are the joint bookrunners and joint lead managers for the Regulation S deal.

The issuer is a subsidiary of Thailand-based energy company Energy Earth PCL.

Oman bank to market notes

National Bank of Oman SOAG will embark on a roadshow for a dollar-denominated issue of benchmark-sized notes on Thursday, a market source said.

Credit Agricole CIB, HSBC, National Bank of Abu Dhabi and Standard Chartered Bank are the bookrunners for the Regulation S deal.

Roadshow for RHB Bank

Malaysia’s RHB Bank Bhd. has mandated BofA Merrill Lynch, Deutsche Bank and RHB Investment Bank to lead a roadshow for a dollar-denominated issue of notes, a market source said.

The roadshow will start on Wednesday. A Regulation S deal is expected to follow.

RHB Bank is a subsidiary of Malaysia’s RHB Capital Bhd., a Kuala Lumpur-based financing firm.

China Longyuan hires banks

China Longyuan Power Group Corp. Ltd. has mandated Goldman Sachs, Agricultural Bank of China, Citic Securities International, Wing Lung Bank, Bank of China and HSBC as bookrunners for a three-year issue of dollar-denominated notes, a market source said.

The Regulation S notes will be issued by subsidiary Hero Asia Investment Ltd.

China Longyuan is a Beijing-based wind power producer.

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