Qatar tranches edge up in trade; Yapi Kredi, Turkiye Sise talk deals; Eskom notes gain

By Rebecca Melvin

New York, March 7 – Qatar’s newly priced tranches edged up by ¼ point or less on Thursday after the state printed $12 billion of notes due 2024, 2029 and 2049.

The $2 billion tranche of 3 3/8% five-year notes was quoted at 100.06 bid, 100.10 offered by a trader in London near the end of Europe’s trading session. The notes priced at a reoffered 99.89 to yield 3.399%, or U.S. Treasuries plus 90 basis points, which was tight compared to initial price talk of Treasuries plus 110 bps.

The $4 billion tranche of 4% 10-year notes was quoted at 100.12 bid, 1001.8 offered, and the $6 billion tranche of 4.817% 30-year notes was quoted at 100.15 bid 100.25 offered.

The 10-year notes priced at 99.649 to yield 4.043%, or a spread of Treasuries plus 135 bps, which was tightened from initial price thoughts of Treasuries plus 160 bps. And the 30-year notes sold at par to yield Treasuries plus 175 bps.

The ultra large Qatar debt deal saw eye-popping demand of more than $50 billion, according to sources.

Also for the Middle East, Dubai-based Emirates NBD Bank PJSC announced an offering of additional Tier 1 perpetual notes that it plans to price following a roadshow with fixed-income investors.

The notes are non-callable for six years.

The meetings will be held in Europe and Asia commencing on March 11.

A pair of Turkish issuers were also in the market following on the heels of Koc Holding’s successful offering earlier in the week.

Yapi ve Kredi Bankasi AS (Yapi Kredi) was talking $500 million of five-year notes to yield in the 8¼% area, according to a syndicate source on Thursday.

Order books were in excess of $800 million, the source said.

Citigroup, Emirates NBD Capital, Morgan Stanley, SMBC Nikko, Standard Chartered Bank and UniCredit were joint bookrunners of the deal.

The issuer is a commercial bank based in Istanbul.

And Turkiye Sise ve Cam Fabrikalary AS was talking a planned U.S. dollar-denominated benchmark offering of seven-year notes on Thursday to yield in the range of 7¼% to 7 3/8%, according to a syndicate source.

Order books for the offering were about $950 million at late morning in the New York trading session.

Citigroup and JPMorgan are bookrunners for the new notes.

For Latin America, Corporacion Quiport SA was talking dollar-denominated notes due 2033 to yield 12%. Pricing was expected to occur on Friday.

The minimum deal size for the Rule 144A and Regulation S notes is $350 million.

International Airport Finance, an affiliate of the Quito Airport, is the issuer of the notes, and Citigroup and Santander are joint bookrunners.

A roadshow regarding the notes wrapped up on Wednesday.

The proceeds are earmarked for various uses, including debt refinancing.

The airport operator is based in Ecuador.

Digicel priced an upsized $600 million issue of five-year first-lien senior secured notes at par to yield 8¾% on Thursday.

The issue size increased from $550 million.

The yield and price both came on top of final talk. Earlier yield talk was in the 9% area.

The Kingston, Jamaica-based mobile phone network provider plans to use the proceeds to refinance short-term secured debt. The additional proceeds resulting from the $50 million upsizing of the deal will be used to put additional cash on the balance sheet, which will, in turn, be used for general corporate purposes, which may include distributions to Digicel International Finance.

In secondary market action, South Africa’s Eskom Holdings SOC Ltd.’s bonds jumped as investors cheered the news that the loss-making utility was granted permission by the country’s energy regulator to raise its rates 9.41%, 8.1% and 5.2% for the next three years, respectively.

The Eskom 2028 notes jumped 2.5 points to 108 and the Eskom 2025 notes rose 1.4 points to 101.25, according to market sources.

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