Ivory Coast, Alternatifbank sell bonds; Qatar sees sellers; South Africa plans issuance

By Christine Van Dusen

Atlanta, July 16 – Ivory Coast and Turkey’s Alternatifbank AS were among the emerging markets issuers to prints notes on a fairly active but low-liquidity Wednesday as conflicts continued in Israel and Ukraine.

Balancing things out, in terms of investor sentiment, were Tuesday’s unsurprising comments from the Federal Reserve.

“A relatively flat open,” a London-based analyst said.

Some bonds from the Middle East have seen some pull-back in spreads, a London-based trader said.

He pointed to paper from Bahrain and Kuwait, which now appears to be a “good value,” he said.

“We still tend to see buyers of the investment-grade names in seven- to 10-year paper from the usual suspects,” he said.

Perpetual notes from the region were “a mixed bag,” he said, and Aldar Properties PJSC’s 2018s were popular at 104¾ bid, 104.90 offered.

“Closing them 16 basis points tighter on the month,” he said.

Bonds from Qatar saw sellers on Wednesday, he said.

“Given that we are in the middle of July, it’s clear the respective client flows are pushing asset prices around,” he said.

Looking to Latin America, some names were weaker amid poor flows while others remained firm in the midst of minimal liquidity, a New York-based trader said.

The new issue of notes from Brazil’s Cimento Tupi SA – 6 5/8% notes due 2024 that priced at par – moved to 103½ on Wednesday.

BB Securities, Bradesco BBI, Citigroup and Morgan Stanley were the bookrunners for the Rule 144A and Regulation S deal.

Mexico-based Unifin Financiera SAPI de CV’s new 6¼% notes 2019 were struggling, he said, having priced at 99.472 and moving only as high as 99.70.

Citigroup, Credit Suisse and Scotia were the bookrunners for the Rule 144A and Regulation S deal.

Ivory Coast prints notes

Ivory Coast priced a $750 million issue of notes due in 2024 at a yield of 5 5/8%, a market source said.

The notes priced in line with talk, set in the 5 5/8% area.

Citigroup, BNP Paribas and Deutsche Bank were the bookrunners for the deal.

Other details on the pricing were not immediately available on Wednesday.

Alternatifbank prices bonds

Turkey’s Alternatifbank sold $250 million 3 1/8% notes due July 21, 2019 at 99.477 to yield 3.239%, or mid-swaps plus 143 bps, a market source said.

BofA Merrill Lynch and Commerzbank were the bookrunners for the Regulation S deal.

The lender is based in Istanbul.

Caixa launches issue

Brazil’s Caixa Economica Federal launched a $500 million issue of notes due in 10 years at 7¼%, a market source said.

The notes were talked at a yield in the low- to mid-7% area.

BB Securities, BofA Merrill Lynch, Bradesco BBI, BTG Pactual, Deutsche Bank Securities and HSBC are the bookrunners for the Rule 144A and Regulation S deal.

Caixa Economica Federal is a Brasilia-based lender.

South Africa to issue notes

South Africa is planning to issue dollar-denominated notes due in 2044 and euro-denominated notes due in 2026, according to a company filing.

Barclays, Citigroup and Rand Merchant Bank are the lead managers. Investec is the co-lead manager for the Securities and Exchange Commission-registered deal.

The proceeds will be used to repay maturing debt and for general governmental purposes.

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