Qatar $12 billion deal attracts ample interest; Montenegro launches; LatAm deals on tap

By Rebecca Melvin

New York, April 12 – Qatar announced on Thursday that it was pricing three series of notes due 2023, 2028 and 2048 following the conclusion of roadshow meetings.

The sovereign was expected to price $12 billion across the three tranches with a skew toward the 30-year notes and looking like a modest sum compared to an order book that a syndicate source reported was more than $53 billion.

The book size illustrates strong appetite in the market even after the large $11 billion of bonds that Saudi Arabia priced in three tranches on Wednesday.

Qatar’s five-year notes saw final guidance tightened to a yield spread of 135 basis points over U.S. Treasuries, from initial talk in the area of Treasuries plus 170 bps.

Guidance was tightened on the 10-year totes to Treasuries plus 170 bps from initial talk in the Treasuries plus 200 bps area. And guidance on the 30-year notes was tightened to Treasuries plus 205 bps from Treasuries plus 230 bps initially.

Also in the primary market on Thursday, Montenegro launched €500 million of seven-year notes to yield 3 5/8%. That pricing was tightened from guidance early Thursday in the area of 3¾%, plus or minus 125 bps, and initial talk in the high 3% area.

This deal saw an order book of about €1 billion.

But there were no announcements regarding pricing on Thursday for three deals the region of Central & Emerging Europe, Middle East and Africa that have been on the calendar, including Oman Telecommunications Co. SAOG, Noor Bank PJSC or KazMunayGas.

“There is nothing announced as pricing today,” a source said.

Stronger market tone returned to Latin America, which saw two deals come off its forward calendar for pricing on Thursday as well as two new deals announced to price. Three of those deals were heard to have priced by Prospect News’ deadline.

Uruguay announced a new 2055 bond, which was being talked at a yield spread of U.S. Treasuries plus 235 bps initially. That deal still had not been chiseled out by Prospect News’ deadline.

Among the three corporate deals, Banco do Brasil SA announced and priced a $750 million five-year bond at par with a 4 7/8% coupon compared to initial talk in the low-5% area.

And from the calendar, Grupo Bimbo SAB de CV priced $500 million of 5.95% hybrid securities on Thursday at par, with a yield spread of U.S. Treasuries pus 328 bps, a New York-based market source said.

The hybrids are perpetual with a call at year five on April 17, 2023.

It priced below talk, which was for a yield in the low- to mid-6% range.

And RioPrevidencia priced $600 million of 10-year dollar notes at par for an 8.2% coupon, compared to talk in the mid-8% area.

The tone in emerging markets has been unpredictable and is “still day by day, depending on the markets,” a New York-based syndicate source.

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