New Emirates NBD Bank notes slip; EM soft but sees late bounce; Lebanon mixed to tighter

By Rebecca Melvin

New York, Nov. 8 – Emirates NBD Bank PJSC’s newly priced 3¼% notes slipped below issue price in trade on Wednesday after the Dubai-based bank priced $750 million of the five-year notes below par at 99.726, according to market sources.

The new Emirates NBD Bank bond was seen at 99.40 bid, 99.60 offered in trade, one source said.

Turkey and the Middle East were particularly soft, the source said.

The market shock came on the heels of Saudi Arabia’s crackdown on Saturday on alleged corruption among the kingdom’s political and business leaders.

The Saudi government says that it is seeking to confiscate as much as $800 billion in cash and other assets in its broadening probe.

Lebanon was mixed with some spread tightening occurring.

Meanwhile new deals continued to price. In Central & Eastern Europe, Russia’s Petropavlovsk plc priced its first dollar benchmark, a $500 million offering of 8 1/8% five-year notes at par.

Citigroup Global Markets Ltd., J.P. Morgan Securities plc, Sberbank CIB (Cyprus) and VTB Capital plc were joint lead managers and joint bookrunners of the notes, which had been talked at a maturity of five to seven years.

Petropavlovsk is a Russian gold mining company listed on the London Stock Exchange.

The Republic of Lithuania priced a €350 million tap of its existing 0.95% notes due 2027 at 100.929 and a €200 million tap of its existing 2.1% notes due 2047 at 104.345, according to a market source on Wednesday.

The add-ons to the Luxembourg Stock Exchange-listed securities were sold by J.P. Morgan Securities as stabilization coordinator and Banca IMI as stabilization manager, bringing those deal sizes up to €1.1 billion and €750 million for the 2027 and 2047 notes, respectively.

The original Regulation S issue of €550 million 2.1% notes due 2047 and €750 million of 0.95% notes due 2027 priced on May 26.

African Development Bank plans to price $2 billion of 2 1/8% five-year global notes on Wednesday with a final spread of mid-swaps plus 12 basis points, according to a market source.

The fixed spread was unchanged from initial talk.

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