Hungary sells $2 billion; new Asian deals hold above issue; Star Energy to start roadshow

By Paul A. Harris

St. Louis, Jan. 26 - Tuesday's emerging markets trading saw cash bonds hold firm while sovereign credit default swaps ground tighter, according to a New York trader who focuses on Asian credit.

Korea five-year CDS finished the New York session at 103 bps bid, 107 bps offered, 2 bps tighter on the day.

Among the recent Asian deals, Vietnam's new 6¾% notes due 2020, which priced at 98.576 to yield 6.95% on Monday in a $1 billion issue, went out Tuesday about a point above issue price, at 99½ bid.

The sector's most recent outperformer, an Indonesian high-yield corporate, is Listrindo Capital BV (PT Cikarang Listrindo)'s new 9¼% senior notes due 2015. The notes priced at 99.106 to yield 9½% in a $300 million issue last Friday.

The new Cikarang 9¼% notes (Ba2/BB/) were holding in Tuesday 2½ points over issue, at 102 bid, 102½ offered, the trader said.

Away from Asia, Brazil five-year CDS were 134 bps mid, in the European afternoon, unchanged, according to a source in Europe.

Meanwhile, Russian five-year CDS were 173 bps mid, 5 bps tighter.

Mexico five-year CDS were 141.5 bps mid, 1 bp tighter.

And Ukraine five-year CDS were 903 bps mid, 7 bps tighter.

Hungary sells $2 billion

In the primary market, the Republic of Hungary priced a $2 billion issue of 6¼% 10-year notes (Baa1/BBB-/BBB) at a 265 bps spread to Treasuries on Tuesday.

The reoffer price was 99.86, resulting in a 6.269% yield to maturity.

Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. managed the sale.

Export-Import Bank of India prices

Meanwhile, the Export-Import Bank of India (Baa3/BBB-) priced a $300 million issue of five-year notes at a 180 bpss spread to mid-swaps on Tuesday.

Citigroup and Deutsche Bank ran the books for the Regulation S-only deal.

Star Energy roadshow ahead

Looking to the new issue calendar, Indonesia's Star Energy Geothermal (Wayang Windu) Ltd. will begin a roadshow on Wednesday for its benchmark dollar-denominated offering of five-year notes (B2).

The roadshow will include stops in Asia, Europe and the United States.

Barclays Capital, Standard Chartered Bank and Nomura are leading the note offering.

Proceeds will be used to refinance bank debt and to fund an interest reserve account for the bond, with any excess proceeds to partially fund developmental cost related to the proposed Unit 3 expansion.

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