Primary sees Frasers Centrepoint; oil prices undulate, EM performs; Lat-Am tightens

By Christine Van Dusen

Atlanta, April 14 – Singapore’s Frasers Centrepoint Ltd. was among the issuers to sell notes on Thursday as oil prices undulated ahead of this Sunday’s oil-producer talks in Doha.

“Global market sentiment remains buoyed, providing a favorable backdrop also for [emerging markets] assets,” a London-based strategist said on Thursday morning. “The strong market performance has also lured new issuers to tap international debt markets.”

Meanwhile, South Africa remained under intense scrutiny by investors and rating agencies, he said.

He noted that the sovereign could be downgraded to junk in June or December, “given the mixed messages on the position of finance minister.”

Also on Thursday, Latin American bonds moved tighter and higher yet again, though volumes were low, a New York-based trader said.

Brazil’s five-year credit default swaps spreads closed at 338 basis points from 340 bps after trading as wide as 346 bps earlier on Thursday.

Mexico’s CDS finished at 157 bps from 158 bps, he said.

“Cash prices continue to gap higher with little volume as dealers seem to be chasing this market and real money continues to demand paper,” he said. “Lat-Am high-yield finishes the day with Argentina jumping whereas Venezuela was mostly unchanged.”

Argentina’s Bonar 2024s closed at 111.50 from 110, while Venezuela’s 2027s closed at 40.25 from 40.75.

PDVSA’s 2017s finished at 54.25 from 54.40.

“Flows very light for today’s session, with better buyers of all things Lat-Am,” he said.

Alternatifbank trades

The new issue of $300 million 8¾% notes due 2026 that Turkey’s Alternatifbank AS priced this week at 99.01 to yield 9% saw some activity on Thursday.

The notes were spotted during the European session at 102.60 bid, 102.90 offered after trading on Wednesday at 102 bid, 102½ offered.

The notes were initially talked at 10%, then revised to the area of 9% to 9¼%.

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

Turkey stays firm

In other trading from Turkey, cash bonds remained “fairly firm” on Thursday amid better buying, as well as tightening of credit default swaps spreads, a trader said.

“Banks and corporates are very well-bid by all accounts as retail and real money add,” he said. “Interest has picked up with new issues in the space.”

Hungary launches notes

Hungary launched a RMB 1 billion issue of notes due in three years at 6¼%, a market source said.

Bank of China is the sole bookrunner for the Regulation S deal.

Frasers prices bonds

In its new deal, Singapore’s Frasers Centrepoint priced S$250 million 4¼% notes due April 21, 2026 at par to yield 4¼%, a market source said.

OCBC was the bookrunner for the Regulation S deal.

Frasers Centrepoint, a subsidiary of Frasers and Neave, Ltd., is a residential property developer and retail mall owner and operator in Singapore.

Talk from Kia Motors

South Korea’s Kia Motors Corp. set talk for a two-tranche issue of benchmark-sized and dollar-denominated notes due in five and 10 years, a market source said.

The five-year notes were talked at a spread of Treasuries plus 145 bps to 150 bps.

The 10-year notes were talked in the Treasuries plus 155 bps area.

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

Kia Motors is an automobile manufacturer based in Seoul.

Roadshow for Black Sea

Greece’s Black Sea Trade and Development Bank will set out next week for a roadshow to market a dollar-denominated issue of notes, a market source said.

The marketing trip for the Rule 144A and Regulation S deal will take place in Europe and the United States.

Other details were not immediately available on Thursday.

The company is a financial and development institution based in Thessaloniki.

IPIC seeks issuance

Abu Dhabi’s International Petroleum Investment Co. (IPIC) is looking to issue euro-denominated notes, a market source said.

The proceeds will be used to refinance debt.

Other details were not immediately available on Thursday.

IPIC is a government investment vehicle.

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