Slovak Republic prices $1.5 billion 4 3/8% notes; Gazprombank sets talk; Sinopec on deck

By Aleesia Forni and Paul A. Harris

Columbus, Ohio, May 10 - Activity in the emerging markets space picked up on Thursday as concerns regarding Europe's debt crisis and Greece's exit from the euro seem to have eased, according to market sources.

In the secondary market, the United Arab Emirates' Union National Bank PJSC's notes due 2016 have seen a good deal of interest this week and traded at 100.9 bid, 101 offered during the day, according to a market source.

The bank sold $400 million of 3 7/8% notes in November at 99.05 to yield 4.087%.

Meanwhile, Dubai saw a quieter day in trading on Thursday, as its bonds due 2022 were seen at 101.4 bid, 101.5 offered.

The $650 million tranche of 6.45% 10-year paper sold at par in late April.

Thursday's primary market saw the Slovak Republic price a $1.5 billion 10-year deal, and Gazprombank and China Petrochemical Corp. (Sinopec) release price guidance for their respective proposed issuances.

Slovak Republic notes

The Slovak Republic sold $1.5 billion 4 3/8% notes due 2022 at Treasuries plus 262.5 basis points, or 99.082, to yield 4.49%, according to a market source.

Pricing came at the tight end of talk, which was set at Treasuries plus 262.5 bps to 275 bps.

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

Gazprombank deal

Also in the primary, Gazprombank is planning an issuance of five-year notes and has set guidance in the 5¾% area, according to market sources.

Other details of the offering were not disclosed.

The deal seems to be well received as retail investors are attracted to the name, one market source commented, adding that the bank's outstanding bonds have widened 5 bps on the news.

Sinopec offering

Sinopec also released price talk on Thursday, as the company plans to issue a benchmark-sized offering of notes in five-, 10- and 30-year tranches, according to a market source.

Price talk on the five-year notes is set in the area of Treasuries plus 210 bps, while the 10-year notes are being talked in the area of Treasuries plus 215 bps. The 30-year bond is talked at Treasuries plus 185 bps.

Citigroup, JPMorgan, HSBC, Barclays, Goldman Sachs and UBS are managing the deal.

Calik roadshow

The primary also saw Calik Holding AS mandate Citigroup and Deutsche Bank as arrangers for a European and North America roadshow from May 10 to May 15 ahead of possible dollar-denominated Rule 144A and Regulation S deal, according to a market source.

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