Honduras' Cabei, Singapore's Puma sell notes; investor confidence improves; Qtel trades well

By Christine Van Dusen

Atlanta, Jan. 28 - Honduras' Central American Bank for Economic Integration (Cabei) and Singapore's Puma Energy Holdings Pte. Ltd. sold notes on a Tuesday that opened with a more confident tone "after a few difficult days," a London-based analyst said.

Bonds from Turkey were stronger - with the 2036s up a point - though investors were mostly focusing on the upcoming emergency meeting of the sovereign's monetary policy committee, she said.

"We are seeing two-way in Turkish corporates and financials as buyers begin to re-emerge," she said. "We are also seeing interest in Russian corporates."

Russia's 2030s opened up about a ¼ point on Tuesday.

"Fairly active day, with spreads overall doing well," a London-based trader said. "Broader markets have seen the kettle taken off the stove, so we saw U.S. Treasuries tick lower, index and credit default swaps tighten and spreads perform."

In trading from the Middle East, the perpetual notes from Dubai Islamic Bank were marked lower, he said.

"They're 15 basis points wider on the day now," he said.

Abu Dhabi Commercial Bank and Emirates Islamic Bank 2023s were popular on Tuesday, he said.

"Qtel is still trading well, as is Qatar, which is holding very steady," he said.

He was keeping his eye out for the upcoming issue of notes from Kuwait Projects Co. (Kipco), which is expected to be benchmark-sized and due in five years.

BNP Paribas, HSBC and JPMorgan are the bookrunners for the dollar-denominated issue of notes.

"This is a tricky one to price," he said. "There are not many bonds from Kuwait in dollars that maintain some degree of liquidity, so a nice new Kipco near par that is liquid will be a good test for the market. Typically this credit has had a few solid sponsors."

The company's existing bonds have been trading 14 to 21 points above par, he said.

"So the new one may trade tight to these bonds," he said.

Africa in focus

From Africa, South Africa-based Naspers Ltd.'s bonds were 20 bps wider on the week, a trader said.

But most names from the continent were slightly tighter, he said.

"Angola trades OK, at 107¾ bid, 108¼ offered, closing 5 bps tighter," he said. "Morocco 2022s and 2042s traded down a few times in the Street, but there's still demand."

Eskom Holdings was popular among bond investors, he said.

"That's a good 10 bps to 15 bps better," he said.

Puma sells bonds

Puma Energy Holdings priced a $750 million issue of seven-year senior notes at par to yield 6¾% on Tuesday, according to a market source.

The yield printed on top of talk.

Goldman Sachs International and SG CIB were the joint global coordinators. ING, Natixis, RMB and Standard Bank were joint bookrunners.

Proceeds will be used to refinance debt and fund development.

The Singapore-based midstream and downstream oil group has refined petroleum products supply, storage and distribution operations in Central America, the Caribbean, Africa and Australia.

Cabei prices notes

In its new deal, Honduras-based microfinance lender Cabei priced CHF 180 million 1 7/8% notes due 2022 at 100.718 to yield mid-swaps plus 70 bps, a market source said.

UBS was the bookrunner for the deal.

EP Energy on roadshow

Emerging markets-focused EP Energy Corp. set out on Tuesday for a roadshow to market a seven-year issue of €500 million notes, a market source said.

JPMorgan, Citigroup, Societe Generale, RBS and UniCredit are the bookrunners for the Rule 144A and Regulation S deal.

The roadshow is taking place in Europe and will end on Jan. 31.

EP Energy is a Houston-based oil and natural gas exploration and production company with businesses in Germany, the Czech Republic and Slovakia.

Russian Railways sets tenor

Russian Railways set the tenor at nine years for its upcoming issue of euro-denominated notes, a market source said.

Barclays, Citigroup, JPMorgan and VTB Capital are the bookrunners for the Regulation S deal.

A roadshow began on Monday.

Russian Railways is a rail operator based in Moscow.

Paul A. Harris contributed to this article.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.