America Movil, United Overseas Bank price bonds; spreads narrow; Nigeria, Dubai outperform

By Christine Van Dusen

Atlanta, July 15 - Mexico's America Movil SAB de CV and Singapore's United Overseas Bank Ltd. sold notes on a Monday that saw spreads tighten amid thin summertime volumes for emerging markets assets.

The Markit iTraxx SovX CEEME ex-EU index spread moved to 233 basis points over Treasuries, 7 bps tighter than Friday. The Markit iTraxx Crossover index spread - seen Friday at 422 bps - narrowed to 431.5 bps over Treasuries on Monday.

"US Treasuries are opening relatively flat from Friday's close at 2.59%," a London-based analyst said. "A generally quiet start to the week, with most attention on Turkey, which is performing on news the Central Bank may widen the interest rate corridor."

In trading on Monday, Nigeria's recent two-tranche issue of notes continued to tick up and bonds from Dubai saw some gains, a London-based trader said.

"Very, very thin market, but no surprise given the time of year with people reaching for the suncream lotion as summer holidays get underway," he said. "Coupled with the arrival of Ramadan, it's been pretty tricky to navigate."

The day also saw South Africa's Anglogold Ashanti Ltd. and Hungarian Export-Import Bank (Hungarian Eximbank) plan roadshows.

In its new deal, Mexico-based telecommunications company America Movil priced sterling-denominated notes due in 2033 and euro-denominated notes due in 2023 in a Securities and Exchange Commission-registered transaction, a market source said.

The deal included £300 million of 4.948% notes due July 22, 2033 that priced at par to yield 4.948%.

The bookrunners were Citigroup and Banco Santander.

Movil prints euro notes

America Movil's second tranche, €750 million of 3.259% notes due in July 22. 2023, priced at par to yield 3.259%, or mid-swaps plus 135 bps.

The bookrunners for the euro notes due were Citigroup and Credit Suisse.

The proceeds will be used for general corporate purposes.

UOB does deal

Singapore's United Overseas Bank sold S$850 million 4.9% perpetual notes at par to yield 4.9%, a market source said.

United Overseas Bank, ANZ, HSBC, Nomura, Standard Chartered Bank and UBS were the bookrunners for the Regulation S deal.

Anglogold roadshow ahead

South Africa-based gold producer Anglogold Ashanti has mandated three bookrunners to market a dollar-denominated issue of notes during a roadshow, according to a company announcement.

Citigroup, Deutsche Bank and Goldman Sachs with lead the marketing trip in Europe and the United States.

The deal is SEC-registered.

Marketing trip for Hungarian Eximbank

Budapest-based Hungarian Eximbank will set out on Tuesday for a roadshow to market a possible issue of notes, a market source said.

Market sources were whispering on Monday about a possible issue of notes from South Africa's Eskom Holdings SOC Ltd.

"Their 2021s versus South Africa spread out to fresh wides," a trader said.

And market-watchers were talking about Russia, which is expected to issue as much as €7 billion of notes this fall.

NBAD bonds steady

In trading from the Middle East, National Bank of Abu Dhabi's 2019s were very steady on Monday, a trader said.

The notes were quoted at 97¼ bid, 98 offered, 3 bps tighter on the week and unchanged on the month.

Abu Dhabi Commercial Bank's 2019s were 20 bps wider on the week, he said.

Qatar-based Ooredoo QSC saw demand from Asian investors, which drove long-dated bonds 10 bps to 15 bps tighter on the week, he said.

"Decent tone today," he said. "Tells me perhaps the Street is a lot cleaner than a few weeks ago, where every 1 bp to 2 bps move north in yields would bring out the sellers."

Kipco widens, Dubai improves

Kuwait-based Kipco's 2016s were trading in the 114 to 115 context, while its 2020s were seen between 117 and 118.

"Both are 35 bps to 40 bps wider on the month," the London trader said.

Dubai names saw improved performance on Monday after a little "wobble," he said.

"The likes of Emaar Holdings, Dubai Holdings, Majid al-Futtaim Holdings and DPWorld are generally trading very well," he said.

Perpetuals stay active

Perpetual notes from the Gulf region remained fairly active on Monday.

The recent perpetuals that Dubai Islamic Bank priced at par were trading at 98.37 bid, 99.37 offered on Monday, a trader said.

The perpetuals that Abu Dhabi Islamic Bank printed at par were seen Monday at 100½ bid, 101½ offered.

Nigeria notes tick up

Nigeria's recent issue of 5 1/8% notes due 2018 that priced at 98.917 traded Monday at 100½ bid, 101½ offered after Friday's levels of par bid, 100¾ offered, a trader said.

The sovereign's second tranche - $500 million 6 3/8% notes due 2023 that came to the market at 98.193 - was quoted Monday at 100½ bid, 101½ offered. On Friday the notes were spotted at par bid, 101 offered.

© 2015 Prospect News.
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