Chile's Banco de Credito and Guatemala sell notes; recent Russian issues trade up

By Christine Van Dusen

Atlanta, Feb. 7 - Chile's Banco de Credito e Inversiones SA and Guatemala sold notes on a Thursday that saw mostly balanced, and somewhat busy, trading of emerging markets assets.

The Markit iTraxx SovX index spread started the session unchanged while the corporate index tightened by 2 basis points.

"Some bonds are now lagging the move in rates," a London-based trader said. "Moderately active morning, less so this afternoon."

From the Middle East, the recent issue of $1 billion 6 3/8% perpetual Islamic bonds that Abu Dhabi Islamic Bank priced at par traded Thursday at 103 3/8 bid, 103¾ offered, he said.

On Wednesday the notes opened at 102 7/8 bid, 103 5/8 offered before moving to 103 bid, 103½ offered.

Some profit-taking was seen for Dubai's 2023s, with the notes moving from 100¾ to 100 1/8.

"Lebanon still feels a little heavy here," the London trader said. "Meanwhile, more buyers of Dubai Holding's sterling notes."

In other trading, the recent three-tranche issue of dollar and ruble notes from Russia-focused OJSC VimpelCom was active, another trader said.

The 5.2% 2019s, which priced at par, were quoted at 101¼ on Thursday. And the 5.95% 2023s that also priced at par were seen at 100 5/8.

The Rule 144A and Regulation S deal, via Barclays, Citigroup, ING and RBS, also included RUB 12 billion 9% notes due 2018 that priced at par.

"The bonds have performed well, with strong demand in both the eurobonds, with the six-year proving the popular one, trading 1¼ points up," a London-based analyst said. "The 10-year has also recovered, trading up 5/8 points on the break."

PhosAgro moves higher

Also from Russia, the recent $500 million issue of 4.204% notes due 2018 from fertilizer and phosphates company OJSC PhosAgro opened Thursday at 100.55.

From Africa, some profit-taking was seen for bonds from Nigeria, the London-based trader said.

Zambia's notes were down at 1011/4, and Angola was holding at 111½ mid, he said.

"South Africa sovereign bonds had a good week," he said. "Not so for Egypt's 2040s."

Ukraine bonds tick up

From Ukraine, sovereign bonds have been ticking up in trading, said Svitlana Rusakova of Dragon Capital.

The 2017s were particular outperformers while the 2021s were squeezed.

"The 2022s moved about 3/4-point higher to 101¾ bid, 102¾ offered," she said. "Corporate names held up well also."

BCI, Guatemala do deals

In its new deal, Chile-based lender Banco de Credito e Inversiones priced a $500 million issue of 4% notes due 2023 at 99.275 to yield Treasuries plus 212.5 bps, a market source said.

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

The proceeds will be used for general corporate purposes.

And Guatemala printed a $700 million issue of 4 7/8% notes due 2028 at 98.692 to yield 5%, or Treasuries plus 303.10 bps.

HSBC was the bookrunner for the Rule 144A and Regulation S deal.

Schahin sets talk

Thursday also saw Brazil's Schahin Oil & Gas Ltd. set price talk in the high 6% to 7% area for a dollar-denominated issue of benchmark-sized senior notes due in seven years.

Citigroup is the left bookrunner for the deal. Deutsche Bank, HSBC and Mizuho are also joint bookrunners.

The Rule 144A and Regulation S notes are expected to price on Friday.

The Sao Paulo-based oil and gas exploration and production company plans to use the proceeds to refinance debt and for general corporate purposes.

African Bank gives guidance

South Africa's African Bank Ltd. set price talk in the 6 3/8% area for its planned $300 million issue of notes due in 2018, a market source said.

Credit Suisse, Goldman Sachs, Rand International Bank and Standard Chartered Bank are the bookrunners for the Regulation S-only deal.

African Bank is based in Johannesburg.

"This deal should be fine, given the size and the fact that traditionally the bonds have been tricky to source," a trader said.

Bottler plans roadshow

Mexico's Coca-Cola FEMSA SAB de CV has mandated Citigroup, Goldman Sachs and JPMorgan for roadshow starting Feb. 12, a market source said.

No other details were immediately available on Thursday.

The Coca-Cola bottler is based in Monterrey, Mexico.

Korea Housing mandates leads

Korea Housing Finance Corp. has mandated Citigroup, Nomura Securities and Standard Chartered Bank to arrange a roadshow to market a dollar-denominated issue of notes, a market source said.

The Rule 144A and Regulation S transaction will be backed by Korean residential mortgages.

The roadshow will take place in Asia, Europe and the United States.

Romania markets notes

Romania will set out on Feb. 11 for a roadshow to market its issue of notes, a market source said.

Barclays, Citigroup and HSBC are the bookrunners for the deal.

The notes are expected to be denominated in dollars or euros.

DBK prices bonds

This news followed the Wednesday pricing of Development Bank of Kazakhstan's $425 million 4 1/8% notes due 2022 at 99.396 to yield Treasuries plus 222.5 bps.

JPMorgan, VTB Capital and Halyk Finance were the bookrunners for the Rule 144A and Regulation S deal.

The lender is based in Astana, Kazakhstan.

SMU oversubscribed

The final book for Chile-based supermarket company Grupo SMU's $300 million issue of 7¾% notes due 2020 was $1.25 billion, a market source said.

The notes priced at par via BTG Pactual and Deutsche Bank in a Rule 144A and Regulation S deal.

About 57% of the orders came from the United States, 25% from Europe, 15% from Latin America and 3% from Asia.

The proceeds will be used to repay indebtedness and for general corporate purposes.

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