Panama, Africa Development Bank, Temasek price deals; Qatar, El Salvador, Psalm on deck

By Christine Van Dusen and Paul A. Harris

St. Louis, Nov. 16 - Emerging markets ended the Monday session in the United States basically unchanged on the day, according to a market source.

The EMBI-Plus index ended 4 basis points wider at 309 bps bid.

Heading into the European close, five-year credit default swaps were mixed on Monday, following a Friday when most sovereigns and corporates widened.

Argentina closed at 1,007.625 bps mid, 6.905 bps tighter, and Venezuela closed 13.985 bps tighter at 1,037.615 bps mid.

Brazil, however, closed 3.535 bps wider at 123.42 bps mid, and Russia closed at 179.47 bps mid, 0.98 bps wider. Mexico closed at 147.7 bps mid, 4.405 bps wider.

Among corporates, OAO Gazprom closed at 235.835 bps mid, 1.5 bps wider, and Russia's VTB Bank closed at 336.815 bps mid, 2.485 bps tighter.

"Things are generally quiet, but it generally feels a bit better than it has been," a London-based trader said, adding that investors seem to be doing a good job of digesting the heavy supply and may now be feeling slightly less risk-averse.

Panama prices $1 billion

In Monday's primary market The Republic of Panama priced a $1 billion issue of 5.2% 10-year notes (expected ratings Ba1/BB+/BB+) at a 187.5 basis points spread to Treasuries on Monday, according to terms filed with the Securities and Exchange Commission.

The issue came at a 99.796 reoffer price, resulting in a 5.2% yield to maturity.

Deutsche Bank and Credit Suisse ran the books.

African Development at the wide end

Meanwhile African Development Bank priced a $1 billion issue of 1% two-year notes at a 7 bps spread to mid-swaps.

The spread came at the wide end of the 5 to 7 bps price talk.

Deutsche Bank and Goldman Sachs ran the books.

Temasek prices $500 million

Singapore investment firm Temasek Holdings Ltd. (Aaa/AAA) priced a $500 million issue of 5 3/8% 30-year notes at 99.029 to yield 5.441%, on Monday, according to a market source.

Deutsche Bank, Goldman Sachs & Co. and Morgan Stanley were joint bookrunners.

The Rule 144A and Regulation S notes will be issued via subsidiary Temasek Financial Ltd.

Philippines's Psalm rolls out dollar-deal

Power Sector Assets and Liabilities Management Corp. (Psalm) announced a $600 million maximum offering of dollar-denominated guaranteed global bonds due 2024 (Ba3//).

The deal is part of an exchange for $500 million 9 7/8% guaranteed notes due 2010, $700 million zero-coupon guaranteed bonds due 2010 and $400 million guaranteed floating rate notes due 2011, according to the company. The exchange could result in up to a further $600 million of bonds being issued.

The bookrunners are Development Bank of the Philippines, Morgan Stanley & Co. International and UBS AG.

The new bonds are expected to price on Nov. 23.

The Manila-based government-run power company will use the proceeds for general corporate purposes, including servicing payments as part of contracts with independent power producers.

Qatar talks benchmark three-tranche deal

The State of Qatar (Aa2/AA-) set guidance for its benchmark dollar-denominated three-part notes offer.

Notes set to mature in 2015 are talked at a 190 basis points spread to Treasuries. Notes set to mature in 2020 are talked at Treasuries plus 195 bps. And notes set to mature in 2040 are talked at Treasuries plus 215 bps.

The Rule 144A and Regulation S deal is expected to price before the end of the week.

Barclays, Credit Suisse, Goldman Sachs, JP Morgan and Qatar's QNB are the leads.

Proceeds will be used for general funding purposes, including contingency funding for entities that are owned or controlled by the state. In addition, proceeds will be used to fund various infrastructure investments in Qatar, and to fund the continued growth of Qatar's hydrocarbon sector as well as potential investments in the international oil and gas industry.

El Salvador mandates Citigroup, JP Morgan

The Republic of El Salvador (Ba1/BB/BB) mandated Citigroup and JP Morgan to lead a benchmark offering of dollar-denominated 10-year notes, according to a market source.

Investor presentations for the Rule 144A and Regulation S offering are set for Tuesday in Boston, Wednesday in New York, and Thursday on the U.S. West Coast.

Pricing is subject to market conditions.

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