Primary hosts Oman Electricity, Yuexiu Transport, Emirates NBD, others; FOMC on market’s mind

By Christine Van Dusen

Atlanta, April 29 – Oman Electricity Transmission Co. SAOC, India’s Bharat Petroleum Corp. Ltd., China’s Beijing Enterprises Holdings Ltd., China’s Yuexiu Transport Infrastructure Ltd. and Dubai’s Emirates NBD PJSC sold notes on Wednesday as many Latin American bonds moved wider and investors awaited the Federal Open Market Committee meeting.

Brazil-based Petroleo Brasileiro SA and Vale SA were particularly hard-hit by the move in U.S. Treasuries, a New York-based trader said, and real-money investors were selling en masse.

From Asia, bonds were quieter on Wednesday, with high-grade names broadly unchanged, a London-based trader said.

“Tone feels better today, as the higher U.S. Treasury yields attracted real-money buyers,” he said. “New issues were mixed.”

He pointed to the new notes from China Petrochemical & Chemical Corp. (Sinopec Group), a five-tranche issue of dollar-denominated and euro-denominated notes due in five, 10, 30, three and seven years.

The deal included 2½% notes due 2020 that priced at 99.576 to yield Treasuries plus 125 basis points, which on Wednesday closed tighter at 124 bps bid, 121 bps offered, while the 3¼% notes due 2025 that priced at 99.022 moved 1 bp wider to close at 148 bid, 145 offered, he said.

Financial company bonds from China were unchanged on Wednesday, while notes from Korea were firm, with buyers seen for recent issues, he said.

“India is unchanged,” he said.

The new issue of notes from Bank of India (Jersey branch) – 3 1/8% notes due 2020 that priced at 99.574 to yield 3.218% – opened at 191 bps bid, 186 bps offered and traded to a tight of 182 bps before pulling back to 185 bps bid, 182 bps offered, he said.

Citigroup, HSBC and JPMorgan were the bookrunners for the deal.

Oman Electricity sells notes

In its new deal, Oman Electricity Transmission priced $1 billion 3.958% notes due May 7, 2025 at par to yield 3.958%, or Treasuries plus 190 bps, a market source said.

The notes were talked at a spread of 200 bps to 210 bps.

Bank Muscat and JPMorgan were the bookrunners for the Rule 144A and Regulation S deal.

The notes were issued by special-purpose vehicle Lamar Funding Ltd.

Emirates NBD prints bonds

Dubai’s Emirates NBD priced a downsized $350 million issue of 3% notes due May 6, 2020 at 99.655 to yield 3.075%, or mid-swaps plus 150 bps.

HSBC, Emirates, Morgan Stanley and Standard Chartered Bank were the bookrunners for the Regulation S deal.

The deal was initially expected to total $500 million.

Emirates NBD is a provider of corporate, consumer, treasury and investment banking and asset management services.

Yuexiu Transport issues notes

China’s Yuexiu Transport Infrastructure priced €200 million 1 5/8% notes due May 7, 2018 at 99.782 to yield 1.7%, or a spread of mid-swaps plus 158 bps, a market source said.

The notes were talked at a spread in the 175-bps area.

Bank of China, BOC International, HSBC, JPMorgan and Nomura Securities were the bookrunners for the Regulation S deal.

The notes were issued by Famous Kind International Ltd. and guaranteed by Yuexiu Transport.

The issuer is based in Hong Kong.

Bonds from Bharat Petroleum

India’s Bharat Petroleum priced $500 million 4% notes due May 8, 2025 at 99.105 to yield 4.11%, or Treasuries plus 208 bps, a market source said.

The notes were talked at a spread in the 210-bps area.

Citigroup, Deutsche Bank, HSBC and Standard Chartered Bank were the bookrunners for the Regulation S-only deal.

Bharat Petroleum is an oil and gas company based in Mumbai.

Beijing Enterprises does deal

China’s Beijing Enterprises Holdings priced €500 million 1.435% notes due May 7, 2020 at 99.914 to yield 1.453%, or mid-swaps plus 120 bps, a market source said.

The notes priced at the tight end of talk, set at 120 bps to 125 bps.

Deutsche Bank, UBS, ANZ, Bank of China and DBS Bank were the bookrunners for the Regulation S deal.

The proceeds will be used for refinancing, working capital and general corporate purposes.

Votorantim Cimentos roadshow

Brazil’s Votorantim Cimentos SA will set out on May 4 for a roadshow to market a euro-denominated issue of notes, a market source said.

Citigroup, Deutsche Bank, HSBC, Banco Votorantim, BB Securities, BofA Merrill Lynch, MUFG Securities and Santander GBM are the bookrunners for the Rule 144A and Regulation S deal.

The roadshow will begin in Frankfurt and Munich and travel to London before concluding on May 6 in Amsterdam and Paris.

Votorantim Cimentos is a cement company based in Sao Paulo.

Roadshow for CCB

China Construction Bank (Asia) Corp. Ltd. will depart on a roadshow on May 1 for a dollar-denominated issue of notes, a market source said.

CCB International, HSBC, Citigroup and Standard Chartered Bank are the joint global coordinators. CCB International, HSBC, Citigroup, Standard Chartered Bank, JPMorgan, Credit Suisse, Deutsche Bank and ANZ are the joint bookrunners and joint lead managers for the Regulation S deal.

The roadshow will be held in London, Singapore and Hong Kong.

The lender is based in Beijing.

Binhai sells bonds

On Tuesday, China’s Binhai Investment Co. Ltd. (BICL) priced $200 million 3¼% notes due May 6, 2018 at 99.838 to yield 3.307%, or Treasuries plus 245 bps, a market source said.

Guotai Junan International, Standard Chartered Bank, Barclays and Wing Lung Bank were the bookrunners for the Regulation S deal.

The proceeds will be used to repay borrowings and other indebtedness and for other working capital purposes.

The deal drew a final order book of more than $3.5 billion from about 160 accounts, with 91% from Asia and 9% from the European Union.

Fund managers and securities firms picked up 49%, banks 36%, private banks 11% and others 4%.

Deal from airport company

Uruguay’s ACI Airport Sudamerica SA priced $200 million 6 7/8% notes due Nov. 29, 2032 at 97.168 to yield 7¼%, matching talk, a market source said.

BofA Merrill Lynch and Nomura Securities were the bookrunners for the Rule 144A and Regulation S deal.

ACI is the holding company of Montevideo’s Carrasco International Airport.

Cnooc releases details

Hong Kong’s Cnooc Ltd. released details on the $3.8 billion, three-tranche offering of notes due in five, 10 and 30 years that the oil and gas exploration and production company priced on Tuesday.

The company priced $1.5 billion of 2 5/8% notes due May 5, 2020 at 99.716 to yield 2.686%, or Treasuries plus 128 bps, following talk at 150 bps.

The $2 billion 3½% notes due May 5, 2025 priced at 99.075 to yield 3.611%, or Treasuries plus 160 bps, following talk of 180 bps.

Cnooc trades near reoffer

Cnooc’s new $300 million 4.2% notes due May 5, 2045 priced at par to yield 4.2%, or Treasuries plus 149.6 bps, following talk of 170 bps.

The five- and 30-year notes were issued by Cnooc Finance (2015) Australia Pty. Ltd., and the 10-year notes were issued by Cnooc Finance (2015) USA LLC. All are guaranteed by Cnooc.

The global coordinators, lead managers and bookrunners for the Securities and Exchange Commission-registered deal are BOCI Asia Ltd, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs (Asia) LLC. Also acting as bookrunners are BofA Merrill Lynch, China International Capital Corp. Hong Kong Securities, ICBC International Securities Ltd., J.P. Morgan Securities LLC, Morgan Stanley & Co. International plc, Societe Generale and Standard Chartered Bank.

Proceeds will be used for general corporate purposes.

“All tranches traded around reoffer, with five-year closing at 128 bps bid, 126 bps offered, the 10-year at 161 bps bid, 158 bps offered and the 30-year at 151 bps bid, 148 bps offered,” a trader said.

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