Latvia, Qatar National Bank, Korea Development Bank lead parade of sovereigns in primary

By Paul A. Harris

Portland, Ore., Feb. 14 - Emerging markets debt began weakened at the outset of the New York session as players parsed the latest credit news out of Europe - namely the cancellation of a Greek aid meeting, according to a portfolio manager.

However buyers emerged later in the day as markets stabilized, the source added.

The new PT Cikarang Listrindo 6.95% notes due 2019 gained 75 cents, versus their par issue price; the $500 million issue (Ba2/BB-/) priced on Monday.

Sovereigns and quasi-sovereigns garnered the lion's share of attention in the primary as Republic of Latvia, Qatar National Bank SAQ and Korea Development Bank completed benchmark deals.

Latvia prices at tight end

Latvia priced a $1 billion issue of 5¼% five-year notes at 99.458 to yield 5 3/8% on Tuesday, according to a market source.

The yield printed at the tight end of the 5 3/8% to 5½% price talk, which was downwardly revised from the 5 5/8% area.

Deutsche Bank, HSBC and JPMorgan were the managers.

QNB comes atop revised talk

Qatar National Bank (Aa3/A+/A+) priced $1 billion of 3 3/8% five-year notes at a 235 basis points spread to mid-swaps, according to a market source.

The spread came on top of revised spread talk, which had been tightened from earlier talk of 245 bps.

The notes came at an issue price of 99.631 to yield 3.456%.

Barclays Capital, Citigroup, HSBC, QNB Capital and Standard Chartered Bank are the bookrunners.

The notes were issued under the bank's $7.5 billion euro medium-term note program.

KDB drives by

Korea Development Bank priced a $750 million issue of 3½% 5.5-year notes (A1/A/A+) at a 275 bps spread to Treasuries.

The spread came at the tight end of the Treasuries plus 280 bps price talk. Initial guidance was 295 bps.

The joint bookrunners were BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank AG, Singapore Branch, Hongkong and Shanghai Banking Corp. Ltd., J.P. Morgan Securities LLC, KDB Asia Ltd. and Royal Bank of Scotland plc.

Gol Linhas talks perpetual deal

Gol Linhas Aereas Inteligentes SA (B1/BB-/BB-) talked a $100 million minimum offering of perpetual notes with a yield in the 11½% area on Tuesday, according to an emerging markets fund manager.

The Rule 144A and Regulation S deal, which is being led by JPMorgan, is set to price on Thursday.

The notes come with three years of call protection.

The company will use the proceeds for general corporate purposes, the repayment of existing debt and working capital.

The discount air carrier is based in Sao Paulo.

Core Education seeing EM play

Finally, Atlanta's Core Education and Consulting Solutions, Inc.'s $200 million offering of five-year guaranteed senior notes (/B+/) is garnering attention from emerging markets investors who are finding their way to the deal by way of the Indian parent company, according to a syndicate source.

The deal was talked on Tuesday with a yield in the 12½% area with about 2 points of original issue discount.

The books close at 11 a.m. ET on Thursday, and the deal is set to price thereafter.

Barclays Capital Inc. and Jefferies & Co. are the joint bookrunners. BMO Securities and Standard Chartered Bank are the co-managers.

The company plans to use part of the proceeds to redeem preferred shares. These proceeds will then be used to repay rupee debt and for general corporate purposes, including funding capital expenditures in India.

Proceeds will also be used repay debt and for general corporate purposes.

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