Sri Lanka, China National Bluestar issue bonds; Asian bonds widen; Lat-Am prices fluctuate

By Christine Van Dusen

Atlanta, May 28 – Some risk assets rebounded on Thursday while emerging markets investors were distracted by the upcoming election in Turkey, the continuing turmoil in Greece and the vote for the president of FIFA, which follows the news that several top officials of the soccer organization were arrested on corruption charges.

Against this backdrop, Sri Lanka and China National Bluestar Group Co. Ltd. were among the issuers to print new bonds.

U.S. Treasuries were firm and about 3 basis points tighter on Thursday, and bank paper from Turkey moved wider on limited flows, a London-based trader said.

From Asia, credit lagged the rebound, with high-grade cash opening Thursday unchanged to a couple of basis points wider, another trader said.

“The sell-off in China equities pushed spreads further, with China high-grade cash closing 2 bps to 4 bps wider,” he said. “The rest of the other sectors managed to end the day unscathed and unchanged.”

Oil and gas names closed the session about 1 bp to 3 bps wider, with Cnooc Ltd.’s 2025s moving out 3 bps, he said. And China Petroleum & Chemical Corp. (Sinopec Group) curve saw support, with the 2025s trading 2 bps wider.

“China bank seniors held in unchanged,” he said.

And Bank of India saw its bonds move down after reporting a fourth-quarter net loss, he said.

Looking to Latin America, bonds were a “touch higher to unchanged,” with low-beta spreads slightly wider, a New York-based trader said.

Cash prices undulated along with Treasury moves, he said, and flows picked up while sellers outpaced buyers.

In deal-related news, market sources were whispering about a possible issue of notes from Korea’s Woori Bank.

Sri Lanka sells notes

In its new deal, Sri Lanka sold $650 million 6 1/8% notes due June 3, 2025 at par to yield 6 1/8%, a market source said.

The notes priced at the tight end of talk, set at 6 1/8% to 6Ľ%.

Citigroup, Deutsche Bank, HSBC and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.

Issuance from Bluestar

China National Bluestar priced a two-tranche $1 billion issue of notes due in 2018 and 2020, a market source said.

The $500 million notes due in 2018 priced at a spread of Treasuries plus 220 bps, matching talk.

The $500 million notes due in 2020 priced at Treasuries plus 235 bps, following talk of 235 bps to 240 bps.

Deutsche Bank, Morgan Stanley and BOC International were the joint global coordinators and – along with JPMorgan and BNP Paribas – the joint bookrunners and joint lead managers for the Regulation S deal.

Other details were not immediately available on Thursday.

Bluestar is a chemical product manufacturer based in Chaoyang, China.

Chinese corporate sets talk

China’s Peking University Founder Group Co. Ltd. set talk at 5˝% for a dollar-denominated issue of three-year notes, a market source said.

DBS is the bookrunner for the Regulation S notes, which will be issued through Dawn Victor Ltd.

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

The issuer is a Beijing-based technology conglomerate.

Global Logistic sets talk

Singapore’s Global Logistic Properties Ltd. set talk in the Treasuries plus 210-bps area for a benchmark-sized issue of dollar-denominated notes due in 10 years, a market source said.

Citigroup Global Markets Singapore and Deutsche Bank (Singapore Branch) are the joint global coordinators. Citigroup, DBS Bank Ltd. and Deutsche Bank are joint bookrunners for the Regulation S transaction.

Global Logistic Properties is a provider of logistics facilities.

Zhongrong on roadshow

China’s Zhongrong International Trust Co. Ltd. is on a roadshow for a dollar-denominated issue of notes, a market source said.

Huatai Financial Holdings, Barclays and DBS Bank are the bookrunners for the Regulation S deal.

The roadshow started Wednesday.

The issuer is based in Harbin City and offers investment services.

Roadshow for Beijing company

China’s Beijing Construction Engineering Group Co. Ltd. will set out on Monday for a roadshow to market a dollar-denominated issue of notes, a market source said.

BNP Paribas, Bank of China, BOCOM Hong Kong branch, Shanghai Pudong Development Bank and Wing Lung Bank are the bookrunners for the Regulation S deal.

The roadshow will be held in Hong Kong and Singapore.

Guangzhou Communications issue

The new $400 million issue of 3% notes due 2018 that China’s Guangzhou Communications Investment Group Co. Ltd. priced on Wednesday at 99.872 to yield 3.045%, or Treasuries plus 205 bps, drew a final order book of about $4.6 billion, a market source said.

The notes were talked at a spread in the 230 bps area

DBS and Deutsche Bank were the bookrunners for the Regulation S deal, which was issued by Express (BVI) 2015 Ltd.

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

“Bonds were wrapped around 230 bps for most of the day and leaked wider, post-London open,” a trader said. “The notes closed at 235 bps bid, 230 bps offered, 5 bps tighter.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.