Oman Electricity sets talk; Slovenia coming to market; Woori Bank sells benchmark notes

By Colin Hanner

Chicago, May 9 – More whispers of new deals in the emerging markets pipeline were made more concrete on Tuesday, another session where activity paled in comparison to that of the past few weeks.

The amount of news affecting emerging markets was low “with market participants astonishingly observing the further drop in the VIX,” a market source said, referring to the U.S. and Europe volatility measurement tumbling on Monday to historically low levels.

Aside from the South Korean election – liberal Moon Jae-in won Tuesday night – there was little more making news, opening up a “perfect terrain for primary market activity,” a market source said.

Oman Electricity Transmission Co. SAOC announced it is offering 10-year senior unsecured bonds with initial price talk in the mid-swaps plus 300 basis points area, a market source said.

OmGrid Funding Ltd. will issue the Rule 144A and Regulation S deal.

J.P. Morgan Securities plc and Bank Muscat are the stabilizing managers for the deal.

A roadshow for the notes wrapped up on Monday.

Slovenia to issue euro notes

The Republic of Slovenia will issue new euro-denominated notes as part of a tender offer exchange, the issuer said in a news release.

Slovenia announced a tender offer for its outstanding $2.25 billion 5½% notes due 2022, its $2.5 billion 5.85% notes due 2023 and its $2 billion 5¼% notes due 2024 as part of its government debt management.

The tender offer ends at 11 a.m. ET on May 15.

Woori goes in for benchmark

Seoul, South Korea-based Woori Bank priced $500 million 5¼% perpetual fixed-to-floating rate notes at par on Tuesday, a market source said.

The notes will have a 5¼% coupon until May 16, 2022, when the rate will convert to a floating rate equal to the five-year U.S. Treasury yield plus 333.47 bps until maturity.

Initial price talk for the notes (Ba3/BB+) was in the 5½% area, tightening to 5¼%, a market source said.

Societe Generale, MUFG, BNP Paribas, Citigroup, HSBC, JPMorgan and Nomura International were bookrunners for the deal.

Middle East sovereigns

There was a mixture of movement in the Middle East on Tuesday, though movement for Saudi Arabia trended higher on the session.

The sovereign’s 2 3/8% notes due 2021 were up 8 bps to 98.20 bid, 98.35 offered.

Its 3¼% notes due 2026 were up 3 bps to 97.40 bid, 97.52 offered.

And the 3.628% notes due 2027 were up 8 bps to 101.23 bid, 100.28 offered.

Abu Dhabi’s 6¾% notes due 2019 notes were unchanged at 109¼ bid, 109¾ offered.

And its 2 1/8% notes due 2021 were quoted at 99 bid, 99½ offered.

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