SK Innovation prices $500 million, Korea Development, State Bank of India mandate banks

By Paul A. Harris

Portland, Ore., July 9 – High grade emerging markets debt was one to two basis points tighter while the rest of the asset class was flat on the day, a trader said.

Among benchmark issues, Brazil’s 7 1/8% global bonds due January 2037 were marked at 107.30 during the London morning, a market source said.

The Petrobras International Finance Co. 6¾% senior notes due 2037 were marked at 91.58, the source added.

Crude oil prices were better on the day. The barrel price of West Texas Intermediate crude for August 2018 deliver was up 0.28%, or 21 cents, and $74.01.

There was activity in the investment grade primary market.

SK Innovation Co. Ltd. priced $500 million of five-year senior notes (Baa1/BBB+) at a 140 bps spread to Treasuries.

Meanwhile Korea Development Bank and State Bank of India mandated banks ahead of bond offerings.

Below the investment grade-speculative grade boundary the primary market remains sidelined, a trader said.

Of such credits, 12 to 15 have run investor roadshows and are awaiting market circumstances that might favor an efficient execution.

Issuers continue to become acclimatized to higher rates, the source remarked.

SK Innovation prices notes

South Korean refiner SK Innovation priced $500 million of 4 1/8% five-year senior notes (Baa1/BBB+) at a 140 bps spread to Treasuries.

BofA Merrill Lynch, Credit Agricole and JPMorgan managed the sale.

Korea Development taps banks

Korea Development Bank (Aa2/AA/AA-) mandated BNP Paribas, Deutsche Bank, HSBC, ING and SG CIB for a euro-denominated offering of five-year senior notes.

State Bank eyes green deal

State Bank of India, acting through its London branch (Baa2/BBB-/BBB-) appointed BofA Merrill Lynch, BNP Paribas, Citigroup, Credit Agricole CIB, HSBC, SBI Capital Markets and Standard Chartered Bank as joint bookrunners and joint lead managers to arrange a series of fixed-income investor calls beginning Monday, according to a market source.

A dollar-denominated Regulation S offering of senior unsecured green bonds may follow, subject to market conditions.

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