Qatar National Bank, Union Bank of India, Daegu, Tata, Isbank print notes; spreads widen

By Christine Van Dusen

Atlanta, April 22 - Qatar National Bank SAQ (QNB), Union Bank of India, Korea's Daegu Bank Ltd., India's Tata Communications Ltd. and Turkey's Turkiye Is Bankasi AS (Isbank) sold notes on a Monday that saw mediocre volumes and wider spreads for emerging markets assets.

"Overall a lackluster session for volumes," a London-based trader said. "There's the usual retail investor sprinkling of activity among Abu Dhabi Commercial Bank's 2023s and the perpetuals."

The Markit iTraxx SovX CEEME ex-EU index widened 2 basis points to Treasuries plus 195 bps on Monday. The corporate index - which was seen Friday at 233 bps over Treasuries - moved 5 bps wider.

"The Middle Eastern and North African market has had a slow start," a London-based analyst said.

Said the London trader, "The government of Dubai bonds felt OK today. The long one is closing at 99 mid."

Very little buying was reported for Emirates airlines' 2023s and 2025s.

"They feel well offered in the Street," he said. "Aldar Properties is pushing higher into the mid- to high-108s."

And some retail investor demand was seen for Dubai Holdings and Dar al Arkan, he said.

Monday also saw several issuers take steps toward doing new deals, including Panama, Russia's Nord Gold NV, Bahrain Telecommunications Co. BSC (Batelco), Peru's Consorcio Transmantaro SA, Malaysia's Parkson Retail Group Ltd. and China's Sinochem Global Capital Co. Ltd.

In its new deal, Qatar's QNB printed a $1 billion issue of 2 7/8% notes due April 29, 2020 at 99.216 to yield 3%, in line with talk.

Deutsche Bank, HSBC, JPMorgan, Mitsubishi UFJ Securities, Qatar National Bank and Standard Chartered Bank were the bookrunners for the Regulation S deal.

"This is offering roughly a 10-bps pick-up to National Bank of Abu Dhabi's 2019s," the London trader said.

UBI, Daegu Bank sell bonds

Union Bank of India's $350 million 3 5/8% notes due Oct. 25, 2018 came to the market at 99.679 to yield Treasuries plus 300 bps.

The notes were talked at a spread in the area of 315 bps over Treasuries.

BofA Merrill Lynch, Barclays, BNP Paribas, Citigroup, JPMorgan and Standard Chartered were the bookrunners for the Regulation S deal.

And Korea's Daegu Bank priced a $300 million issue of 2¼% notes due April 29, 2018 at 99.986 to yield 2.253%, or Treasuries plus 155 bps.

Credit Agricole, Deutsche Bank and HSBC were the bookrunners for the Regulation S deal.

Isbank prices notes

In another new deal, Turkey's Isbank priced a $250 million add-on to its existing 3¾% notes due Oct. 10, 2018 at 100.983 to yield 3.55%, a market source said.

The notes were talked in the 3.65% area.

Barclays, Citigroup, Deutsche Bank, HSBC and JPMorgan were the bookrunners for the Rule 144A and Regulation S deal.

The original $500 million issue of notes priced earlier this month at 99.323 to yield mid-swaps plus 285 bps.

New tap from Tata

India's Tata Communications - through Tata Communications (Netherlands) - priced a S$150 million add-on to its 4¼% notes due February 2016 to yield 3.766%.

ANZ, DBS Bank, RBS and Standard Chartered Bank were the bookrunners for the Regulation S deal.

No other details on the new deal were immediately available on Monday.

The original S$250 million issue of notes priced in January.

Tata Communications is part of Tata Group, a conglomerate based in Mumbai.

Panama, Nord Gold plan deals

Panama is planning to issue dollar-denominated notes via bookrunners BofA Merrill Lynch and Credit Suisse, according to a company filing.

Proceeds from the Securities and Exchange Commission-registered deal will be used to partially fund the sovereign's 2013 budget.

And Russia-based mining company Nord Gold has mandated Citigroup, Goldman Sachs, Jefferies, Natixis, Sberbank and Societe Generale as bookrunners for a dollar-denominated issue of notes that will be marketed during a roadshow.

The marketing trip for the Rule 144A and Regulation S deal will be held Wednesday and Thursday in London and conclude on Friday in Geneva and Zurich.

Batelco mandates banks

Bahrain's Batelco has tapped BNP Paribas and Citigroup as bookrunners for a Regulation S-only issue of dollar notes, a market source said.

A roadshow will begin Tuesday in Abu Dhabi and Dubai and travel to Singapore and Hong Kong before concluding on Thursday in London.

The Bahrain-based telecommunications operator is 78% owned by the Kingdom of Bahrain.

"There's been a lack of any real supply from Bahrain recently, so it will be interesting to see how this goes," a trader said. "The Bahrain sovereign has been very stable today."

Transmantaro taps bookrunners

Peru-based power transmission company Consorcio Transmantaro has mandated Credit Suisse, Deutsche Bank, BBVA and BCP Capital as bookrunners for a dollar-denominated issue of notes and an associated roadshow, a market source said.

The marketing trip will take place in Latin America, the United States and Europe.

A Rule 144A and Regulation S deal is expected to follow.

And Malaysian department store company Parkson Retail has mandated DBS Bank, JPMorgan and Nomura Securities as bookrunners for a dollar-denominated issue of notes.

The Regulation S notes will be marketed during a roadshow that starts Tuesday.

Sinochem roadshow ahead

China-based business conglomerate Sinochem Global Capital has mandated Citigroup, UBS, Goldman Sachs, Morgan Stanley and HSBC to market a benchmark-sized and dollar-denominated issue of notes.

The roadshow begins Tuesday and will take place in Hong Kong and Singapore.

A Rule 144A and Regulation S deal is expected to follow.

Polyus Gold oversubscribed

The recent $750 million issue of 5 5/8% notes due April 29, 2020 that Polyus Gold International Ltd. printed at par to yield 5 5/8% drew $1.6 billion in orders, a market source said.

About 36% of the orders came from Europe, 33% from the United States, 16% from the United Kingdom, 13% from Switzerland and 2% from Asia.

Asset managers and funds picked up 62%, banks 29% and private banks 9%.

JPMorgan, Societe Generale and VTB Capital were the bookrunners for the deal.

The proceeds will be used for general corporate purposes.

London-based Polyus is a gold producer with mines in Russia and Kazakhstan.

Final book for Gazprom Neft

Also oversubscribed was Russia-based oil producer JSC Gazprom Neft's €750 million 2.933% notes due April 26, 2018 that priced at par to yield 2.933, or mid-swaps plus 215 bps.

The final book was €1.6 billion, with 37% of the orders from Germany, 20% from Switzerland, 18% from the United Kingdom, 12% from other Europe, 7% from France, 5% from Italy and 1% from others.

Asset managers and funds accounted for 64%, banks 16%, private banks 8%, insurance and pension funds 8% and hedge funds 4%.

BNP Paribas, Credit Agricole, Gazprombank and JPMorgan were the bookrunners for the Regulation S-only deal.

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