Issue from Ronshine; Pemex triple-tranche wows market; Ahli Bank on deck; Kipco sets talk

By Christine Van Dusen

Atlanta, Feb. 15 – Ronshine China Holdings Ltd. sold notes on a Wednesday that saw emerging markets investors focusing on the record-breaking deal from Mexico’s Petroleos Mexicanos SAB de CV (Pemex) and the latest comments from Federal Reserve Chair Janet Yellen.

“She commented that the Fed will continue to act gradually,” according to a report from Schildershoven Finance BV. “At the same time, Yellen warned that waiting too long could also have costs for the country’s economy.”

Yellen also said that she doesn’t need to wait for Trump’s administration stimulus policy before making a hike.

“The main factor influencing policymakers’ decision is U.S. economy growth, the situation in the labor market and inflation pressure,” the report said. “The market neutrally reacted to Yellen’s comments.”

In trading, the new, triple-tranche notes from Pemex – the largest euro-denominated deal from a corporate issuer thus far – were active on Wednesday.

The €1.75 billion 2½% notes due Aug. 21, 2021 that priced Tuesday at 99.957 to yield 2.512% traded Wednesday morning at 99.928 bid, 99.978 offered.

The €1.25 billion 3¾% notes due Feb. 21, 2024 that priced at 99.463 to yield 3.839% traded Wednesday morning at 99.36 bid, 99.46 offered.

And the €1.25 billion 4 7/8% notes due Feb. 21, 2028 that priced at 99.135 to yield 4.979% traded Wednesday morning at 99.65 bid, 99.85 offered.

BNP Paribas, Credit Agricole CIB, Deutsche Bank and HSBC were the bookrunners for the deal.

“Very busy morning, with this three-tranche deal with plenty of EM tourists involved,” a London-based trader said. “The 2028s are still in the money as the rest are fading and we keep one eye on Bunds. Fast-money sellers of the 2021 and 2024 in early trading, with that supply taken out by private banks and Middle East asset swappers. The 2028 is where most accounts still see value, but as yet I have not seen any sizable adding.”

Ronshine prices notes

In its new deal, Ronshine China Holdings priced a $225 million tap of its 6.95% senior notes due Dec. 8, 2019 at 98.258, according to a company filing.

The original issue of $175 million priced at 98.547 to yield 7½%.

UBS, Haitong International, Guotai Junan International, AMTD, SPDB International, Orient Securities (Hong Kong) and China Industrial Securities International are the joint lead managers and joint bookrunners for the Regulation S offering.

The proceeds will be used for general corporate purposes.

Other details were not immediately available on Wednesday.

Ronshine is a property developer based in Fuzhou, China.

Ahli Bank launches bonds

Qatar’s Ahli Bank QSC launched a $500 million issue of five-year bonds at mid-swaps plus 155 basis points, a market source said.

Bank ABC, Barclays, HSBC, Mizuho Securities, QNB Capital and Standard Chartered Bank are the bookrunners for the deal.

The lender is based in Doha.

Kipco gives guidance

Kuwait Projects Co. SPC Ltd. (Kipco) set initial talk at 4 7/8% for a 10-year issue of dollar-denominated fixed-rate notes, a market source said.

Citigroup, HSBC, Kamco and JPMorgan are the bookrunners for the deal.

Proceeds will be used to fund a tender offer for the issuer’s $500 million 4.8% notes due 2019 in order to extend the company’s debt maturity profile.

The issuer is a Kuwait City-based public investment holding company for a diverse group of businesses.

Equate draws orders

Kuwait-based Equate Petrochemical Co. KSCC’s new $500 million 3.944% Islamic bonds due Feb. 21, 2024 drew a final book of $3.7 billion from more than 270 orders, a market source said.

The notes priced at par to yield 3.944%, or mid-swaps plus 175 bps, following talk in the 210 bps area.

About 65% of the orders went to investors in the Middle East and North Africa, 11% to Asia, 9% to Europe, 14% to the United Kingdom and 1% to others.

Citigroup, HSBC, JPMorgan, KFH Capital and NBK were the global coordinators and – with Mizuho, MUFG, National Bank of Abu Dhabi and SMBC Nikko – joint bookrunners for the deal.

Surprising data from Poland

From Poland, bonds are expected to get a boost from the sovereign’s recent economic release, which showed a stronger-than-expected fourth-quarter, Schildershoven said in a report.

“Expectations of further rebound may attract investors to the sovereign and corporate bonds,” the report said.

Agrokor could bounce back

Investors were also keeping an eye on Croatia-based Agrokor Group, which recently saw its bonds fall to a record low after a Russian official said the nation might not help the Croatian company refinance its loans.

On Wednesday, the Russian ambassador seemed to switch gears, saying that Russia is willing to working with all Croatian companies, including Agrokor, that are willing to develop trade and economic ties with Russia.

This should “partly mitigate the negative effect of his previous speech over the Agrokor bonds,” Schildershoven said.

Yingde eyed

Also receiving attention on Wednesday was China’s Yingde Gases Group, after potential buyer Air Products & Chemicals Inc. said it faced hurdles in its takeover offer.

Things have not gone smoothly for this deal so far, with infighting among Yingde’s directors and major shareholders.

This week Air Products said that Yingde falsely stated that the two parties were engaged in due diligence and expressed concern that Yingde’s directors did not want to move forward with talks.

“A threat of a possible deal break between Yingde Gases and Air Products could cause a deep correction of Yingde Gases’ bonds,” Schildershoven said.

© 2015 Prospect News.
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