Dubai trades near re-offer; Gazprombank sets guidance; Braskem launches $500 million bonds

By Aleesia Forni

Columbus, Ohio, April 26 - Emerging markets were "unusually quiet" during London's Thursday session, one trader remarked.

However, the New York session was "pretty constructive," according to an emerging markets syndicate official there.

In the secondary market, activity was limited to some flipping of Dubai's latest deal, which traded quietly on Thursday, in contrast to "the usual frenzy around other recent sovereign deals," London-based sources noted.

Dubai priced $600 million of 4.9% five-year sukuk at par and a $650 million tranche of 6.45% 10-year paper at par on Wednesday.

Both tranches were trading roughly 1/16 point above re-offer "but on low volume as retail stays away," one source added.

The primary market saw Gazprombank announce initial guidance for its proposed seven-year issue, while Braskem SA launched a $500 million bond.

The Markit iTraxx SovX CEEMEA index, which tracks Central and Eastern Europe, the Middle East and Africa credit default swaps, was unchanged from Wednesday's close in London, sitting at 285 basis points during the Thursday session.

Cash continued to flow into emerging market bond funds this week. The funds saw $540 million of inflows for the week, with flows in favor 2 to 1 of hard currency funds, according to a figure provided by fund-tracker EPFR Global.

Gazprom price talk

Gazprombank has set initial guidance for its proposed offering of seven-year notes in the 7½% area, according to market sources.

BNP Paribas, Deutsche Bank and Gazprombank are arranging the deal, which is expected to price Friday, according to a syndicate source.

Views on the Moscow-based lender's price talk are mixed, another source said.

"Some love it, thinking you get a nice pick up for negligible additional subordination risk," the source said. "Others point to the lackluster performance of the Nomos seven-year deal at 10%."

Nomos Bank priced $500 million 10% notes due 2019 last week, and the deal has been "lagging" in the secondary market, a source told Prospect News on Wednesday.

Braskem launch

Braskem (Baa3/BBB-/BBB-) launched a $500 million senior unsecured 10-year bond at 5.4%, according to a market source.

The Rule 144A and Regulation S deal is coming via BB Securities, BTG Pactual, HSBC and JPMorgan.

Proceeds will be used to prepay existing debt and for general corporate purposes.

Braskem is a petrochemicals company based in Sao Paulo, Brazil.

China Oilfield offering

The primary also saw China Oilfield Services Ltd. announce a planned bond issue of up to $1 billion, according to a company release.

Proceeds will be used for general corporate purposes.

China Oilfield Services is based in Beijing and engages in the exploration, development and production of oil and natural gas operations.

Global Bank deal

Panama's Global Bank (Baa3/BBB-) is also eyeing a possible deal, as the company plans a $175 million to $200 million five-year covered bond offering, according to a market source.

Deutsche Bank is arranging a roadshow ahead of the possible transaction. Meetings are scheduled to end Monday.

Global Bank is based in Panama City.

China ZhengTong roadshow

China ZhengTong Auto Services Holdings Ltd. will began a roadshow on Wednesday ahead of a possible offering of senior notes (Ba3/BB-), according to a company release.

J.P. Morgan is the global coordinator and bookrunner and is joined by CCB International as lead manager.

Proceeds will be used to repay the company's HK$1.22 billion loan and its RMB 1 billion loan, as well as for general corporate purposes.

China ZhengTong is a Beijing-based automotive sales and services company.

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