Issues from Tata Motors, Brazil, ICE, China Railway; trading volumes low on holiday

By Christine Van Dusen

Atlanta, May 9 - India's Tata Motors Ltd., Brazil, Costa Rica's Instituto Costarricence de Electricidad (ICE), China's Poly Property Group Co. Ltd., Rolta India Ltd., Indonesia's PT Bhakti Investama Tbk and China Railway Construction Corp. Ltd. sold notes Thursday amid light trading volumes for the European holiday.

"Lackluster day with many out in Europe on holiday," a London-based trader said.

The Markit iTraxx SovX CEEME ex-EU index spread on Thursday widened 1 basis point to 176 bps over Treasuries while the corporate index spread - seen Wednesday at 210 bps over Treasuries - moved out 3 bps.

"With most of Europe on holiday today, the markets are relatively quiet," a London-based analyst said.

Indeed, many bonds from the Middle East and Africa didn't budge much on Thursday, though some of the lower-beta names opened with a bid.

"Emirates airline bonds are in demand due to their lagging performance versus peers recently and results that saw full-year profit up 34%," the London trader said.

Some paper from Qatar's Qtel International seemed to be floating around, particularly the 2021s, 2023s and 2028s, he said.

"Also felt like some Dolphin Energy 2019s came out," he said. "They went down between 113 1/8 and 1123/4."

Bonds from Dubai and its corporates felt well supported, he said. And perpetual notes were stable in trading on Thursday, with Dubai Islamic Bank's closing at 103.18 and Abu Dhabi Islamic Bank's at 106¼ after both priced at par.

"Abu Dhabi National Energy Co. (TAQA) is holding firm, as is Bahrain," he said.

But notes from the region took a backseat on Thursday to action in Turkey, a trader said.

"Grab-a-thon in Turkish markets," he said. "The market should see more sukuk issuance out of Turkey, given the recent success of issues from banks there."

Fidelity trades near reoffer

The new issue of bonds from Nigeria's Fidelity Bank plc - $300 million 6 7/8% notes due 2018 -was trading near re-offer on Thursday, a trader said.

The notes recently priced at 99.48 to yield Treasuries plus 635 bps via Citigroup and Deutsche Bank in a Rule 144A and Regulation S deal.

Tata sells notes

In its new deal, India's TML Holdings Pte. Ltd., a wholly owned subsidiary of Tata Motors Ltd., priced S$350 million 4¼% notes due 2018 at par to yield 4¼%, a market source said.

ANZ, Citigroup, Deutsche Bank and Standard Chartered Bank were the bookrunners for the Regulation S deal.

The proceeds will be used for the redemption of preference shares issued to Tata Motors and for general corporate purposes.

Brazil tap comes to market

Brazil priced a $750 million add-on to its existing 2 5/8% notes due 2023 to yield 2¾%, following talk of a yield of 2.8% to 2.85%.

Barclays and Citigroup were the bookrunners for the Securities and Exchange Commission-registered deal.

The original issue of $1.35 billion notes priced on Sept. 12, 2012, according to a filing from the sovereign.

ICE does deal

Costa Rica's electricity and telecommunications provider ICE sold $500 million 6 3/8% notes due 2043 at 98.359 to yield 6½%, a market source said.

The notes were talked in the 6½% to 6 5/8% area.

Citigroup and Deutsche Bank were the bookrunners for the Rule 144A and Regulation S deal.

Poly Property prices bonds

China-based residential and commercial property company Poly Property sold $500 million 4¾% notes due 2018 at par to yield 4¾%, matching talk.

BOC International, Citigroup, Deutsche Bank, ICBC International, RBS and UBS were the bookrunners for the Regulation S deal.

Issuance from Rolta India

Mumbai-based technology services company Rolta India priced a $200 million issue of 10¾% notes due 2018 at 99.527 to yield 10 7/8%.

The notes matched talk of a 10 7/8% yield.

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

Bhakti Investama prints notes

Indonesia-based investment company Bhakti Investama - through subsidiary Ottowa Holdings Pte. Ltd. - priced a $365 million issue of 5 7/8% notes due 2018 at par to yield 5 7/8%, a market source said.

The notes priced at the tight end of talk, set at 5 7/8% to 6%.

Deutsche Bank was the bookrunner for the Rule 144A and Regulation S notes.

Notes from China Railway

China Railway Construction - through CRCC Yuxiang Ltd. - priced an $800 million issue of notes due 2023 to yield Treasuries plus 178 bps.

Citigroup, HSBC, Morgan Stanley, Citic Securities, BNP Paribas and ABC International were the bookrunners for the Regulation S deal.

The proceeds will be used for investments in overseas businesses and for general corporate purposes.

Other details were not immediately available on Thursday.

Sberbank taps banks

In other deal-related news, Russia-based lender OAO Sberbank mandated BNP Paribas, JPMorgan, Sberbank and UBS Investment Bank as bookrunners for an issue of dollar-denominated notes that will be marketed during a roadshow, a market source said.

The Rule 144A and Regulation S marketing trip will begin May 13 and take place in the United States and Asia.

And Singapore's Freight Links was planning an issue of notes.

BRF on roadshow

Brazil's Brasil Foods SA (BRF) is on a roadshow for a dollar-denominated issue of notes, a market source said.

The marketing trip for the Rule 144A and Regulation S deal began on Thursday and will travel to Lima, London and Los Angeles before concluding on May 14 in New York and Boston.

BB Securities, Bradesco BBI, Itau BBA, Morgan Stanley and Santander are the bookrunners for the notes.

KazAgro markets deal

Kazakhstan's JSC National Managing Holding KazAgro (KazAgro) will set out on Friday for a roadshow to market a dollar-denominated issue of bonds, a market source said.

HSBC and JPMorgan are the bookrunners for the Rule 144A and Regulation S deal.

KazAgro is an Astana-based agricultural company.

Want Want gives guidance

Want Want China Holdings Ltd. set talk at Treasuries plus 115 bps to 120 bps for its dollar-denominated issue of benchmark-sized notes, a market source said.

BofA Merrill Lynch and JPMorgan are the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used for refinancing debt and for general corporate purposes.

The Shanghai-based issuer manufactures rice cakes, flavored milk and other snacks and beverages.

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