Emerging markets activity flat as participants eye Greece; Henderson Land, Sberbank price

By Paul A. Harris

Portland, Ore., Feb. 15 - Cash bonds and synthetics in the emerging markets ended the Wednesday New York trading session basically unchanged, sources said.

The European session began with a healthy bid that faded toward the end of the London day, a trader there said.

Once again investors must size up the debt markets in the context of a possible default by Greece on its sovereign debt, as there is no clarity on what steps the European core countries might take to avert such an event, a trader source commented.

The primary market passed a relatively quiet session, which could get quieter, a New York-based debt capital markets banker remarked.

Henderson Land MTN Ltd. priced an upsized $300 million add-on to its 4¾% notes due 2017.

And Sberbank priced a CHF 325 million issue of 3.5-year loan participation notes.

In Europe a good bid fades

Early strength in the European session gave way to selling sparked by yet more credit worries, sources said.

The State Oil Co. of the Azerbaijan Republic's (Socar) recently issued 5.45% notes due 2017 (Ba1/BB+/BBB-) were seen as tight as 30 basis points over the Gazprom curve but widened to 65 bps by the close.

Socar priced the bonds at par in a $500 million issue on Feb. 2.

Meanwhile the new Republic of Latvia 5¼% notes due 2019 were par bid, par 1/8 offered at the London close, according to a trader there.

The $1 billion issue priced at 99.458 to yield 5 3/8% on Tuesday.

The deal played to strong demand in the United States, the trader remarked.

Henderson Land upsizes

China's Henderson Land MTN Ltd. priced an upsized $300 million add-on to its 4¾% notes due 2017 at a 410 bps spread to Treasuries on Wednesday.

The spread came on top of final guidance.

The notes were priced at a 99.226 to yield 4.927%.

DBS Bank, HSBC, JPMorgan, Morgan Stanley and Standard Chartered Bank were the bookrunners for the deal, which was upsized from $200 million.

The original $400 million issue priced at 99.215 to yield 4.929% on Feb. 7.

Sberbank prices notes

Elsewhere Russia's Sberbank priced a CHF 325 million issue of 3.5-year loan participation notes (A3//BBB) at par to yield 3.1%.

UBS and Credit Suisse ran the books.

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