Morning Commentary: New FirstRand Bank notes trade up; Indonesia prices dual currency deals

By Rebecca Melvin

New York, April 17 – FirstRand Bank Ltd.’s newly priced 6¼% 10-year notes traded well early Tuesday after the Johannesburg-based financial services company priced $500 million of the tier 2 subordinated notes at 99.472 to yield 6 3/8%, according to a London-based trader.

The FirstRand deal was seen at 101.25 bid, 101.75 offered.

Meanwhile the European session in emerging markets was busy, with a euro-denominated seven-year tranche launching for Indonesia at €1 billion in size to yield mid-swaps plus 115 basis points. Indonesia is also pricing a 10-year dollar note.

There were also five deals that had been on the forward calendar in various stages of pricing on Tuesday.

SC NC KazMunayGas was guiding pricing on three tranches of dollar notes for a yield on the seven-year notes at 4¾% to 4 7/8%, for the 12-year notes at 5 3/8% to 5½% and the 30-year notes at 6.45% to 6.6%.

The order books were seen in excess of $4.25 billion.

The new deals were pricing concurrently with a tender for four series of notes.

KazMunayGas is Kazakhstan's state-owned oil and gas company.

Terms were also firming for Dubai’s Noor Bank PJSC, which was heard to have launched a five-year dollar sukuk to yield mid-swaps plus 165 bps, and Oman Telecommunications Co. SAOG’s (Omantel) two-tranche benchmark offering of five- and 10-year notes.

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