Maybank prints notes; new issues perform in secondary; EM rally slows; inflows decline

By Christine Van Dusen

Atlanta, April 29 – Malaysia’s Malayan Banking Bhd. (Maybank) sold notes as other newly priced bonds from emerging markets issuers performed in trading on Friday, even as a rally for risky assets appeared to be wrapping up.

“Week 11 of the EM rally is now coming to an end, with Markit CDX Emerging Markets and JP Morgan EMBI indices currently trading at multi-month lows,” a strategist said. “With no doubt, the softer U.S. dollar, in line with recovering oil prices, and the positive momentum have been major drivers.”

Flows into emerging markets assets by non-resident investors, which reached $37.1 billion in March, totaled $25.5 billion in April, according to the Institute of International Finance.

“Going into the long weekend here – early May bank holiday in the UK – the short-term outlook remains positive, with central bank decisions now behind us and major concerns at the start of the year showing no signs of reappearing,” he said.

This “benign market environment” has attracted issuers, he said.

Among them was Turkey, which on Thursday priced a $1.5 billion tap of its 6 5/8% notes due 2045 at 117.781 to yield 5.4%.

“This takes the total to $3 billion on the sovereign’s longest outstanding tenor,” the strategist said. “This potentially leaves another $1.5 billion in issuance for the remainder of the year.”

BNP Paribas, Goldman Sachs and JPMorgan were the bookrunners for the Securities and Exchange Commission-registered issue.

The original $1.5 billion issue came to the market in February of 2014 at 99.026 to yield 6.7%, or Treasuries plus 297.2 bps.

BofA Merrill Lynch, BNP Paribas and Goldman Sachs International were the bookrunners.

Maybank sells bonds

In its new deal, Malaysia’s Maybank priced a $500 million issue of notes due Oct. 29, 2026 with a coupon of 3.905%, according to a company announcement.

Deutsche Bank, HSBC and Maybank Kim Eng Securities were the bookrunners for the issue.

Other details were not immediately available on Friday.

The commercial and retail bank is based in Kuala Lumpur.

Black Sea trades higher

In other trading of new issues, Greece-based Black Sea Trade and Development Bank’s new $500 million 4 7/8% notes due 2021 that priced Thursday at 99.27 to yield Treasuries plus 375 bps traded Friday morning at 101.52 bid, 101.98 offered, a trader said.

JPMorgan and HSBC were the bookrunners for the Rule 144A and Regulation S deal.

Huawei spread tightens

The new issue of notes from China’s Huawei Investment & Holding Co. Ltd. – a $2 billion issue of 4 1/8% notes due 2026 that priced Thursday at 99.716 to yield Treasuries plus 230 bps – traded Friday at 229 bps bid, 228 bps offered, a trader said.

ANZ, Bank of China, HSBC and Standard Chartered Bank were the bookrunners for the Regulation S deal.

The notes were issued via Proven Honour Capital Ltd., a subsidiary of the Shenzhen-based provider of information and communications technology solutions and services for telecom carriers, enterprises and consumers.

The final book was $5 billion from 233 accounts.

Lat-Am in focus

Looking to Latin America, bonds finished the month “on a sour note, with spreads widening and cash prices dropping,” a New York-based trader said.

Brazil’s five-year credit default swaps spreads closed at 342 bps from 340 bps, while Mexico’s moved to 163 bps from 158 bps.

“Cash prices were initially firm, but as the market went quiet, levels started drifting lower,” he said. “Latin American high yield finishes mixed on the day.”

Argentina, Venezuela mixed

Argentina’s Bonar 2024s closed mostly unchanged at 113.25, and its new 2026s traded at 101.80 from 101.65, the New York trader said.

Venezuela’s 2027s were down a little bit, at 42.75 from 43, while PDVSA’s 2017s closed up at 58.65 from 58.

“Good two-way flows for the day, although it was a bit quieter relative to what we usually see during month-end,” he said. “Risk assets do pare some losses into the close, but it’s tough to read too much into the move today because of month-end noise.”

Banco de Bogota sets roadshow

Colombian lender Banco de Bogota will set out on May 3 for a roadshow to market a benchmark-sized issue of notes, a market source said.

Credit Suisse, HSBC and JPMorgan are the bookrunners for the Rule 144A and Regulation S deal.

China Aircraft sells notes

On Thursday, China Aircraft Leasing Group Holdings Ltd. sold $300 million 5.9% notes due 2019 at par to yield 5.9%, according to a company filing and a market source.

China Everbright Bank and DBS Bank were the bookrunners for the Regulation S deal. China Everbright Bank, DBS Bank and Bocom International Securities were joint lead managers.

The proceeds will be used to finance acquisitions, for business expansion and for other general corporate purposes.

The aircraft leasing company is based in Hong Kong.

© 2015 Prospect News.
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