Emerging markets stronger as Shinhan Bank, Slovenia price; Alfa, Daycoval set price talk

By Christine Van Dusen

Atlanta, March 8 - Emerging markets were, as one market source put it, "super busy" on Monday as the primary picked up steam and three issuers from the financial world moved forward with planned bond deals.

"Generally it's all stronger," a London-based trader said. "It feels pretty good."

Contributing to this sense of optimism was Shinhan Bank's pricing of $700 million 4 3/8% unsecured notes due 2015 at 99.84 to yield 4.408%, or Treasuries plus 205 basis points, and the awaited pricing of €1 billion 2¾% notes due 2015 at 99.453 to yield mid-swaps plus 37 bps from the Republic of Slovenia.

Also on Monday, Russia's Alfa MTN Issuance Ltd. and Brazil's Banco Daycoval talked their planned dollar-denominated five-year notes. Alfa set price talk at 8¼% to 8½% for its expected benchmark-sized senior unsecured notes, according to a market source. And Daycoval set price talk at the 7% area for its planned offering.

"There is cash available, and that's allowing issuers to come to market," an emerging market strategist said. "There are deals in the market, and there is still room for more. The market is going to do well going into the next couple of weeks."

On the horizon is a dollar-denominated issue of senior unsecured notes from CLP Power Hong Kong Financing Ltd., which on Monday mandated Barclays Capital, Citi, HSBC and Standard Chartered as joint bookrunners, according to a market source.

Also mandating bookrunners was the State of Israel, which signed up with Barclays Capital, Goldman Sachs International and Morgan Stanley for a euro-denominated benchmark-sized issue of notes.

Meanwhile, five-year credit-default swaps were mostly tighter on Monday, with Brazil closing at 122 bps mid, 6 bps tighter. Mexico closed at 115 bps mid, 4 bps tighter. Russia closed at 151 bps mid, 8 bps tighter, and Argentina closed at 1,040 bps mid, 58 bps tighter.

Ukraine, on the other hand, saw its five-year CDS widen on Monday, closing at 809 bps mid, 15 bps wider.

Shinhan Bank prices

Shinhan Bank priced $700 million 4 3/8% unsecured senior notes due Sept. 15, 2015 at 99.84 to yield 4.408%, or Treasuries plus 205 bps, according to a market source.

Bank of America Merrill Lynch, BNP, Citi, Deutsche Bank and Morgan Stanley are the bookrunners for the Rule 144A and Regulation S offering.

Shinhan Bank is based in Seoul.

Slovenia prices notes

The Republic of Slovenia priced €1 billion 2¾% notes (Aa2/AA/AA) due March 17, 2015 at 99.453 to yield mid-swaps plus 37 bps, according to a market source.

Abanka Vipa, Commerzbank, RBS and SG CIB are the bookrunners for the deal.

Alfa talks dollar deal

Russia's Alfa MTN Issuance set price talk for its planned five-year dollar-denominated benchmark-sized senior unsecured notes at 8¼% to 8½% (Ba1/B+/BB-), according to a market source.

As of the European close, the deal was "going quite well," the source said.

The bookrunners for the Regulation S offering are JPMorgan Chase & Co. and UBS AG.

The bonds could price as soon as this week, another market source said.

Alfa Bank is a private lender based in Moscow.

Daycoval talks dollar notes

Brazil's Banco Daycoval talked its planned dollar-denominated senior notes due March 2015 at the 7% area (/BB/BB), according to a market source.

Banco Itau, Morgan Stanley and Santander are the bookrunners for the Regulation S deal, which is expected to total about $100 million. Co-managers are Banco Daycoval and Banco Votorantim.

Proceeds will be used for general corporate purposes.

A roadshow wrapped up Monday in London and New York.

Banco Daycoval is a Sao Paulo-based banking company.

CLP Power taps bookrunners

CLP Power Hong Kong Financing has mandated Barclays Capital, Citi, HSBC and Standard Chartered as joint bookrunners for a dollar-denominated issue of senior unsecured notes (A1), according to a market source.

The Regulation S deal will be launched subject to market conditions following a roadshow in Hong Kong on Wednesday, Singapore on Thursday and London on Friday.

Proceeds will be used for general corporate purposes.

CLP Power Hong Kong Financing is a power company in the Asia-Pacific region.

Israel mandates bookrunners

Israel (A1/A/A) has mandated Barclays Capital, Goldman Sachs International and Morgan Stanley as bookrunners for a euro-denominated benchmark-sized offering of notes, according to a market source.

The pricing of the deal is subject to market conditions.

Paul A. Harris contributed to this report

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