Hutchison sells euro bonds; South Africa on deck; Korea National bonds firm in secondary

By Aleesia Forni

New York, April 6 – China’s Hutchison Finance (16) Ltd. entered the primary on Wednesday with a two-part sale of euro-denominated bonds, while the Republic of South Africa announced plans to bring a new deal to market.

Hutchison sold a €1.35 billion issue of 1¼% seven-year bonds at 99.688 to yield 1.297%, or mid-swaps plus 110 basis points.

A €650 million tranche of 2% 12-year bonds sold at 99.641 to yield 2.034%, or mid-swaps plus 138 bps.

HSBC, BofA Merrill Lynch, Barclays and Credit Agricole are the bookrunners.

The company is a Hong Kong-based business conglomerate.

Meantime, South Africa is planning to price an offering of notes via lead managers Citigroup Global Markets Inc., Rand Merchant Bank and Standard Chartered.

The co-lead manager is Investec.

Proceeds will be used for general purposes of the government.

And the recently priced bonds from Korea National Oil Corp. – a $1 billion offering of notes in five- and 10-year tranches – was trading better in the secondary during the session.

Korea National firms

Korea National Oil’s $500 million of 2 1/8% five-year notes was around 2 bps better on Wednesday at 93 bps bid after pricing with a spread of Treasuries plus 95 bps.

The $500 million tranche of 2 5/8% 10-year bonds that sold with a spread of Treasuries plus 95 bps was 1 bp better at 94 bps bid.

The notes were sold via Rule 144A and Regulation S at the tight end of revised price talk on Tuesday.

Bookrunners were Citigroup, Credit Agricole CIB, Goldman Sachs, HSBC, JPMorgan and Korea Development Bank.

Korea National Oil is an oil and gas production and exploration company based in Anyang, South Korea.

Kia roadshow

Moving to the primary, South Korea’s Kia Motors Corp. mandated BofA Merrill Lynch, Citigroup, HSBC, J.P. Morgan Securities LLC and Nomura to arrange a series of investor meetings, a market source said.

A dollar-denominated offering of bonds may follow.

The meetings will begin this week and take place in the United States, Asia and Europe.

Kia Motors is an automobile manufacturer based in Seoul.

Ahli Bank sets guidance

Elsewhere, Ahli Bank QSC set final guidance for its planned $500 million issue of five-year bonds at 260 bps over mid-swaps, a market source said.

HSBC, Barclays and QNB are the bookrunners for the Regulation S deal.

The company previously held a roadshow from March 31 through April 4.

The lender is based in Doha.

Sunshine Life taps leads

Sunshine Life Insurance Corp. has mandated HSBC, ICBC, JPMorgan, CMB International and Morgan Stanley to arrange a series of investor meetings, according to a market source.

The meetings will begin on Wednesday and take place in Asia and Europe.

An offering of senior notes may follow.

The insurance company is based in Beijing.

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