Morning Commentary: Bahrain Mumtalakat trades, plans new deal; Latvia offering on tap

By Rebecca Melvin

New York, Feb. 11 – Bahrain Mumtalakat Holding Co. BSC’s existing notes were trading early Monday after the real estate company announced that it is planning to price a new dollar-denominated benchmark offering of five-year Islamic bonds, or sukuk, according to a London-based trader.

The older notes were seen at 97.125 bid, 97.625 offered with a z-spread of 254 basis points on the bid side.

The issuer has mandated BNP Paribas, Citigroup, HSBC, National Bank of Bahrain and Standard Chartered to organize roadshow meetings for the proposed offering on Tuesday.

Also on Monday, the Republic of Latvia announced that it plans to price a new euro-denominated 30-year benchmark offering of notes. The Regulation S deal is being marketed via Citigroup, Credit Agricole and Goldman Sachs.

A pair of China property and real estate firms joined the new issue calendar. Both Shanghai-based Zhenro Properties Group Ltd. and Guangzhou, China-based China Aoyuan Property Group Ltd. are proposing to price dollar-denominated senior fixed-rate notes, with proceeds earmarked to refinance existing debt.

Meanwhile, Thailand’s Siam Commercial Bank PCL has priced $1 billion of notes in two tranches due 2024 and 2029 (BBB+/BBB+), according to a market source.

The $500 million of notes due 2024 priced with a 3.9% coupon.

The $500 million of notes due 2029 priced with a coupon of 4.4%.

And Shanghai-based Baoxin Auto Finance I Ltd. priced $300 million of 7.9% senior notes due 2020.

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