JD.com sells notes; EM continues rally but shows ‘signs of fading’; Abu Dhabi on deck

By Christine Van Dusen

Atlanta, April 22 – China’s JD.com sold new notes as oil prices held their gains and emerging markets assets continued to rally on a mostly calm Friday, with investors seemingly unaffected by the dovish stance reaffirmed by the European Central Bank.

“[Emerging market] credit traded fairly unimpressed by the ECB meeting, although the rally has seen some signs of fading recently,” a trader said. “Crude oil is holding its gains above pre-Doha levels.”

Though a strike among oil workers in Kuwait offset some losses at the beginning of the week, oil prices climbed later on a decline in U.S. output.

“Moreover, an advisor of the Saudi Oil Ministry said that oil supply may decrease by 1 million barrels per day in the second half of 2015,” he said. “OPEC members in the meantime reiterate that a freeze agreement could still be reached within the next two months – either at a meeting in Russia or at the next OPEC meeting in June – but credibility has collapsed after last week’s get-together.”

Bonds from Kazakhstan were slightly softer on Friday, with the long end and middle of the curve a little bit lower, another trader said.

“The higher cash price 2025s and 2045s have outperformed on the curve, with fast money adding this week on the oil move,” he said. “The 2045s have been the star performer, and slightly bull-flattened on the curve, as shorts were squeezed.”

Looking to Turkey, bonds softened into Friday, another trader said.

“No surprise,” he said. “We saw the banks and corporates outperform versus some pressure in the long end of the dollar sovereign curve. That looks to be continuing as more profit-making filters through and flow picks up.”

Issuance from JD.com

In its new deal, China’s JD.com priced a $1 billion two-tranche issue of notes due April 29, 2021 and 2026 in a Securities and Exchange Commission-registered deal, according to a company filing.

The $500 million 3 1/8% notes due 2021 priced at 99.418 to yield 3.252%, or Treasuries plus 190 basis points. The notes priced tighter than talk, set at 215 bps.

The $500 million 3 7/8% notes due 2026 priced at 98.298 to yield 4.084%, or Treasuries plus 220 bps. Talk was set wider, at 280 bps.

BofA Merrill Lynch and UBS were the bookrunners for the deal. Barclays was co-manager.

The proceeds will be used for general corporate purposes.

The issuer is a Chinese electronic commerce company headquartered in Beijing.

Maybank gives guidance

Malaysia’s Malayan Banking Bhd. (Maybank) set talk at Treasuries plus 280 bps for a dollar-denominated issue of notes due in 10½ years, a market source said.

Deutsche Bank, HSBC and Maybank Kim Eng Securities are the bookrunners for the issue.

The notes will be non-callable for 5½ years.

The commercial and retail bank is based in Kuala Lumpur.

Hong Kong Electric sees orders

Hong Kong Electric Holdings Ltd.’s new issue of $750 million 2 7/8% notes due 2026 that priced Thursday at 98.910 to yield Treasuries plus 112.5 bps brought in a final order book of about $2.5 billion from more than 180 accounts, a market source said.

The notes were talked at a spread in the 115-bps area.

BofA Merrill Lynch, BNP Paribas, HSBC and Mizuho Securities were the bookrunners for the Regulation S deal.

About 87% of the orders came from Asia and 13% from Europe, with fund managers picking up 46%, banks 30%, private banks 15% and insurers 9%.

The proceeds will be used for general corporate purposes.

In trading, the notes were seen at 114 bps bid, 113 bps offered.

Trilogy to price notes

Trilogy International Partners LLC plans to price a $450 million offering of three-year senior secured notes (Caa1) on Monday, according to a market source.

Deutsche Bank Securities Inc. has the books.

The notes come with six-month call protection.

The Bellevue, Wash.-based wireless telecommunications company plans to use the proceed to refinance its 10¼% senior secured notes due Aug. 15, 2016.

Trilogy International has operations in Latin America, the Caribbean and New Zealand.

Abu Dhabi sets tenors

Abu Dhabi set the tenors for its upcoming issue of dollar-denominated notes at five, 10 and 30 years, a market source said.

BofA Merrill Lynch, Citigroup and JPMorgan are the bookrunners for the Rule 144A and Regulation S deal.

A roadshow that started in Abu Dhabi and traveled to London and New York City concluded Friday on the West Coast.

“We are looking forward to a continuously active primary market,” a trader said.

Paul A. Harris contributed to this article.

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