Axiata, Korea Hydro tap market; Siam notes trade near re-offer; PKO, Mexichem on deck

By Aleesia Forni

Columbus, Ohio, Sept. 11 - Axiata Group Bhd. and Korea Hydro & Nuclear Power Co. Ltd. hit the market on Tuesday to start off a week that could see a "pretty good flow" of new issues, a syndicate source said.

Axiata issued RMB 1 billion of 3¾% sukuk, while Korea Hydro priced a $750 million issue of 3% 10-year notes.

Meanwhile, China's Road King Infrastructure Ltd. priced $350 million 9 7/8% five-year notes at par on Tuesday.

Aside from Asian issuers, Poland's PKO Bank Polski will start a roadshow this week, and Mexico's Mexichem SAB de CV is planning a $1 billion offering of bonds.

In the secondary market, Siam Commercial Bank Ltd.'s recent issuance was seen trading flat to 1 basis point wider on Tuesday, a London-based trader said.

Axiata issues sukuk

Axiata's wholly owned subsidiary, Axiata SPV2 Bhd., issued RMB 1 billion of sukuk on Tuesday, according to an announcement by CIMB Investment Bank Bhd.

The sukuk were issued at par with a term of two years and a coupon of 3¾%.

This is the first series of sukuk to be issued under Axiata's $1.5 billion multicurrency sukuk program established on July 19.

Listing on the Bursa Malaysia Securities Bhd. and on the Singapore Exchange Securities Trading Ltd. is slated for Sept. 19.

Axiata is a Malaysian telecommunications provider based in Kuala Lumpur.

Korea Hydro prices

Also in the primary, Korea Hydro priced a $750 million issue of 3% 10-year notes (A1) at a spread of 150 bps over Treasuries, according to a syndicate source.

The notes priced at 98.401 to yield 3.188%.

Bank of America, Deutsche Bank, Goldman Sachs and Citigroup were the joint bookrunners for the Rule 144A and Regulation S deal.

The operator of nuclear and hydroelectric plants is based in Seoul, South Korea.

Road King prices notes

Road King Infrastructure priced $350 million of five-year notes at par to yield 9 7/8% on Tuesday, according to a market source.

The yield printed at the tight end of the 9 7/8% to 10% yield talk.

HSBC Ltd., DBS Bank Ltd. and J.P. Morgan Securities plc were the joint bookrunners for the quick-to-market deal.

The Hong Kong-based toll road and property company plans to use the proceeds to refinance debt, including the company's $200 million of 7 5/8% guaranteed senior notes due 2014.

PKO holds roadshow

PKO Bank Polski will begin investor meetings on Sept. 12 ahead of a possible dollar-denominated Rule 144A and Regulation S debt offering.

Goldman Sachs and JPMorgan will arrange the meetings, which will make stops in Europe and the United States.

PKO Bank is a lender based in Warsaw.

Mexichem sets deal size

Mexichem is also planning to hit the market, eyeing a $1 billion offering of bonds, according to market sources.

The company is expected to offer $700 million 10-year notes and $300 million 30-year bonds, the sources confirmed.

As previously reported, the notes (Ba1/BBB-/BBB-) are currently being marketed at a roadshow.

Citigroup, HSBC, JPMorgan and Morgan Stanley are the bookrunners for the Rule 144A and Regulation S deal.

Proceeds will be used to refinance existing debt, according to Moody's Investors Service in a news release.

Mexichem plans to repay $600 million of borrowings under its $1 billion revolving credit facility, a portion or all of the senior notes due 2019 through a tender offer and other existing bank debt.

Mexichem is a chemical company based in Tlalnepantla, Mexico.

Siam notes unchanged

Siam Commercial's $500 million add-on to its existing 3 3/8% notes due 2017 was "hanging around re-offer" to 1 bps wider during London's session.

The notes were quoted at 216 bps offered.

The notes priced at Treasuries plus 215 bps on Monday.

Poland recent issue

More information was released Tuesday regarding the Republic of Poland's $2 billion issue of 3% notes due March 2023.

The bonds were allocated to investors in the United States, which took 39%, investors in the United Kingdom, comprising 21%, and investors in Poland, making up 12%.

Australian and European investors took 9% and 7% respectively.

Asian investors saw 7%, and Middle Eastern investors saw 4%.

Additionally, the institutional distribution was "dominated" by asset managers, who saw 64%, as pension funds and insurance companies were allocated 16%.

Nine percent of the investors were banks, while 4% were central banks.

Paul A. Harris and Marisa Wong contributed to this review.

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