Greentown China prices notes; upbeat but quiet session; Pertamina, Poly Property tap leads

By Christine Van Dusen

Atlanta, May 6 - Greentown China Holdings Ltd. priced notes on Monday amid a positive tone but light trading as a result of the European holidays.

Risk appetite remained strong following Friday's release of stronger-than-expected job growth numbers for April from the United States

"Overall, it's fairly quiet. The tone is still positive but we are certainly lacking the pizazz seen in the second half of last week," a New York-based trader said. "Spreads are tightening to compensate for US Treasury yields' continuing ascent, a bullish and positive sign for sure."

Bonds from Russia seemed to benefit most on Monday, with the sovereign's 2042s making a strong showing in trading.

"Russian eurobonds edged up appreciably," according to a report from UFS Investment Co.

And the spread to the benchmark 2030 bond from Russia continued to narrow, the report said.

"We expect continued demand for Russian eurobonds this week," UFS said.

In other news on Monday, several issuers mandated bookrunners for dollar-denominated issues of notes, including Indonesia's PT Pertamina, Commercial Bank of Dubai PSC (CBD), China's Golden Eagle Retail Group Ltd. and China's Poly Property Group Co. Ltd.

For its new deal, Hangzhou-based property developer Greentown China Holdings priced RMB 2.5 billion 5 5/8% notes due 2016 at par to yield 5 5/8%, a market source said.

The notes were talked at a yield in the 5¾% area.

BOCI, Deutsche Bank, HSBC, ICBC and Standard Chartered Bank were the bookrunners fort he Regulation S deal.

Pertamina mandates banks

Indonesia's PT Pertamina has picked Barclays, Citigroup and RBS as bookrunners for a dollar-denominated issue of notes that will be marketed during a roadshow, a market source said.

The marketing trip will begin Wednesday.

A Rule 144A and Regulation S deal is expected to follow.

Pertamina is a state-owned oil and gas company based in Jakarta, Indonesia.

CBD taps bookrunners

Dubai's CBD has mandated Citigroup, HSBC and National Bank of Abu Dhabi as bookrunners for a dollar-denominated issue of notes that will be marketed during a roadshow, a market source said.

The roadshow will begin on Thursday and take place in Asia, the Middle East and Europe.

A Regulation S issue of benchmark-sized notes is expected to follow.

Golden Eagle sets roadshow

China-based department store operator Golden Eagle Retail Group has tapped Citigroup, HSBC, BofA Merrill Lynch, JPMorgan, Morgan Stanley, BNP Paribas, Deutsche Bank, Goldman Sachs and Nomura Securities as bookrunners for a dollar-denominated issue of benchmark-sized notes.

The Rule 144A and Regulation S deal will be marketed during a roadshow starting Tuesday and taking place in Asia, Europe and the United States, a market source said.

Poly Property markets deal

China's Poly Property Group set out on Monday for a roadshow to market a dollar-denominated issue of notes, a market source said.

BOC International, Citigroup, Deutsche Bank, ICBC International, RBS and UBS are the bookrunners for the Regulation S deal.

Poly Property is a residential and commercial property company based in Hong Kong.

CDS trades decline

Credit default swap trades reached $212 billion for the first quarter of 2013, according to a study by EMTA, the trade association for the emerging markets debt trading and investment industry.

That is down from the previous quarter's $235 billion and up from fourth quarter 2012's $142 billion.

The latter quarter's "abnormally low" level occurred when "the reduction in risk limits, and the exit from the market by some dealers, led to a low level of activity," EMTA said.

Brazil saw the highest volume of CDS trades, at $48 billion, in first-quarter 2013. Mexico saw $28 billion and Russia $17 billion.

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