Latvia and Abu Dhabi’s Etihad Airways launch bonds; BOC Aviation taps lead for roadshow

By Aleesia Forni

Virginia Beach, Sept. 16 – Republic of Latvia and Abu Dhabi’s Etihad Airways PJSC were in the primary market with new bond offerings on Wednesday.

Latvia launched a new €500 million 10-year offering during the session around 5 basis points inside initial price thoughts, and Etihad Airways sold $500 million of five-year bonds to yield 6 7/8%.

In forward calendar news, Singapore’s BOC Aviation Pte. Ltd. announced plans to price a dollar bond offering following a roadshow this week.

Elsewhere on Wednesday, sovereign bonds were largely unchanged during a quiet trading session in Ukraine, a market source said.

Similarly, Ukrainian corporates were mostly quiet, though the market’s tone remained supportive.

Latvia launches

Latvia launched during the session a €500 million issue of notes (A3/A-) due September 2025 at mid-swaps plus 35 bps, according to an informed source.

The issue’s launch came at the tight end of guidance set in the 35 bps to 40 bps range over mid-swaps and tight of talk set in the 40 bps area over mid-swaps.

DNB, HSBC and Natixis are the bookrunners.

Etihad offering

In other primary news, Etihad Airways priced $500 million of bonds (//B-) due 2020 on Wednesday at par to yield 6 7/8%, according to an informed source.

Bookrunners for the Abu Dhabi-based airline’s new issue were Goldman Sachs, ADS Securities and Anoa Capital.

BOC roadshow

Singapore’s BOC Aviation is on a roadshow this week ahead of a possible dollar-denominated benchmark offering of bonds, a market source said.

Citigroup is arranging the meetings.

The notes will be sold via Rule 144A and Regulation S.

The aircraft leasing company is wholly owned by Bank of China.

Tencent prices notes

Tencent Holdings Ltd. said it priced HK$1 billion of notes under its $10 billion global medium-term note program on Wednesday.

The three-year senior notes carry a 2.3% coupon.

The Regulation S notes are expected to be issued on Sept. 24.

The company established the MTN program in April 2014 with an original limit of $5 billion and upsized the program to $10 billion on April 24.

Deutsche Bank AG, Singapore Branch is the arranger for the Rule 144A and Regulation S program, as noted before.

Tencent is an investment holding company based in Shenzhen, China.

Marisa Wong contributed to this review.

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