Emerging markets still quiet; Qatar bank prices; Saudi Electricity's bonds fall slightly

By Aleesia Forni

Columbus, Ohio, April 3 - Aside from a few spurts of activity, Tuesday was a quiet day in emerging markets debt.

In the primary market, Commercial Bank of Qatar Ltd. (A1/A-) priced a $500 million 3 3/8% five-year bond at mid-swaps plus 235 basis points, according to market sources.

This shows an "impressive effort," one trader remarked, as initial guidance was set in the area of 250 bps over mid-swaps.

The source expects trading on Wednesday morning to be dominated by this new deal.

The notes priced at 98.992 to yield 3.597% and were trading at 99.05 bid, 99.20 offered by mid-day Tuesday.

BNP Paribas, HSBC and Morgan Stanley were the bookrunners on the Doha, Qatar-based bank's deal.

Saudi Electricity bonds

The secondary market saw Saudi Electricity Co.'s (A1/AA-/AA-) recent bonds firmly supported in the morning before fading slightly later in London's Tuesday session, according to a market source.

The company's bonds due 2017 were at 101 bid on Tuesday before closing.

To recap, Saudi Electricity priced $1.75 billion sukuk in two tranches on March 28.

The $500 million of 2.665% five-year sukuk priced at par to yield mid-swaps plus 140 bps, and a $1.25 billion tranche of 4.211% 10-year paper sold at par to yield mid-swaps plus 195 bps.

The utility company is based in Riyadh, Saudi Arabia.

Promsvyazbank investor meetings

Promsvyazbank (Ba2/BB-) will hold global meetings with fixed-income investors ahead of a possible deal, according to a market source.

The meetings will be arranged by Barclays, Citigroup, Credit Suisse and Promsvyazbank and will begin on Monday.

A transaction may follow, pending market conditions.

The commercial bank is based in Moscow.

Beijing Enterprises offer

Beijing Enterprises Holdings Ltd. (Baa1) plans to conduct an international offering of senior unsecured notes to institutional investors, according to a company news release.

Bank of America Merrill Lynch, HSBC and Morgan Stanley are joint global coordinators and are joined by DBS Bank, ICBC International and Standard Chartered Bank as joint lead managers for the Rule 144A and Regulation S transaction.

Pricing will be determined through a book-building exercise conducted by the banks.

Proceeds will be used to repay existing debt, for working capital and for general corporate purposes.

The Hong Kong-based company is used by the government for investment.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.