Primary hosts huge Alibaba deal; Israel Chemicals, Protelindo, Elementia also issue notes

By Christine Van Dusen

Atlanta, Nov. 20 – China’s Alibaba Group Holding Ltd. captivated the market by printing a whopping $8 billion issue of notes in six tranches on an otherwise slightly wider Thursday for most emerging markets assets.

Also selling notes on Thursday were Israel Chemicals Ltd., Indonesia’s PT Profesional Telekomunikasi Indonesia Tbk (Protelindo) and Mexico’s Elementia SA de CV.

“[Emerging markets] is generally doing well at keeping up with the Treasury move, with spreads only a fraction wider,” a London-based analyst said.

Said a London-based trader, “Active morning, and then it wound down as the day went on.”

Among the more active issues from the Gulf region on Thursday morning was Dubai Aviation Corp.’s (FlyDubai) $500 million 3.776% notes due Nov. 26, 2019 that priced at par to yield 3.776%, or mid-swaps plus 200 basis points.

“Quite busy,” the trader said.

The notes traded between 99.87 and 100.12 on Thursday but did most of its work near par, he said.

Turkish banks saw buyers in the wake of Wednesday’s news Peru’s BBVA Banco Continental SA is seeking to increase its ownership of Turkey-based GarantiBank International NV (GarantiBank) by purchasing shares from Turkish holding company Dogus Holding AS.

“Russia has stabilized after recent weakness, but liquidity remains generally poor,” the analyst said. “Comments out of Russia have been a little more conciliatory recently.”

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