Renaissance Credit, Vivacom do deals; Poland lags; Chinese dairy roadshow ahead; Sabic narrows

By Christine Van Dusen

Atlanta, Nov. 15 - Russia's Renaissance Credit Group and Bulgaria's Vivacom priced notes on Friday to end a week that saw Treasuries rally and issuance slow down a bit amid headlines about Federal Reserve Vice Chairman Janet Yellen's remarks.

On Thursday, Yellen - who is expected to succeed Ben Bernanke as Fed chief - said she would maintain loose monetary policy, recommended that investors buy gold and denied the existence of a stock market bubble.

Against this backdrop, Turkish banks saw their bonds come under pressure, with the 2022s from Turkiye Vakiflar Bankasi TAO (Vakifbank) and Yapi ve Kredi Bankasi AS among the worst performers, a London-based analyst said.

Russian banks finished the week mixed, with Sberbank underperforming. OAO Gazprom, meanwhile, stood out after the company raised earnings forecasts for the fiscal year by 10%, she said.

"Evraz Group bonds outperformed, with the 2017s 19 basis point tighter on the week," she said.

Among European sovereigns, Poland lagged, with its 2021s, 2022s and 2023s faring poorly.

"Slovenia was the clear outperformer on rising positive sentiment toward the country," she said.

The primary market was fairly quiet on Friday, but issuers continue to line up deals, including China Mengniu Dairy Co. Ltd. and Turkey's Turk Telekom.

"The pipeline remains healthy as we move ever closer to December," she said. "We still await Vnesheconombank's dollar senior notes."

In its new deal, Russia-based financial services company Renaissance Credit Group priced $100 million 13½% notes due 2019 at par to yield 13½% via Goldman Sachs and Sberbank in a Regulation S offering.

The notes were initially talked at 13½% to 14%.

Vivacom does deal

The primary market also saw Bulgarian telecommunications company Vivacom price a €400 million issue of five-year senior secured notes at par to yield 6 5/8% on Friday, according to a market source.

The yield printed on top of revised yield talk. Previous talk was in the 6¾% area. Initial guidance was 6¾% to 7%.

Global coordinator Credit Suisse will bill and deliver. VTB Capital was also a global coordinator. Barclays and Deutsche Bank were the joint bookrunners.

The Sofia, Bulgaria-based company plans to use the proceeds, along with €64 million of cash, to refinance debt.

Chinese dairy sets roadshow

Hong Kong's China Mengniu Dairy will set out on Monday for a roadshow to market a dollar-denominated issue of bonds, a market source said.

No other details were immediately available on Friday.

Turk Telekom sets size

Turkey's Turk Telekom is looking to issue up to $1 billion of bonds in different currencies, a market source said.

The company was mulling a similar issue of bonds in October, and also in August.

Barclays, BNP Paribas, Emirates NBD, JPMorgan and Standard Chartered Bank have been linked with the deal.

Sabic tightens, MAF 'sneaky'

In trading, Saudi Arabia-based Saudi Basic Industries Corp.'s (Sabic) new €750 million 2¾% notes due 2020 that priced at 99.28 were seen at par bid, 100.35 offered, about 10 bps tighter, a trader said.

On Thursday, the notes traded near 99.85 bid, 100.15 offered.

In other trading from the region, the perpetual 7 1/8% notes that Dubai's Majid Al Futtaim Holding LLC (MAF) priced at par were trading Friday at 99, he said.

"Still a sneaky bid," he said.

BofA Merrill Lynch, Emirates NBC, Goldman Sachs, HSBC, JPMorgan and Standard Chartered Bank were the bookrunners for the Regulation S deal.

Recent issues trade

The new notes from Abu Dhabi Commercial Bank PJSC - $500 million floating-rate notes due 2017 that priced at par - traded Friday at 100.05 bid, 100.20 offered, a trader said.

On Thursday the notes were quoted at par bid, 100 1/8 offered.

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

And the recent issue of 2 1/8% notes due 2018 that Qatar National Bank SAQ sold at 99.293 traded at 97½ bid, 97¾ offered on Friday, flat to Thursday's levels.

Deutsche Bank, HSBC, Mitsubishi UFJ Securities, QNB Capital and Standard Chartered were the bookrunners for the Regulation S-only deal.

Ukraine in focus

Looking to Ukraine, sovereign bonds went into the end of the week on a slightly better note, bouncing as much as 1½ points on the long end, said Svitlana Rusakova of Dragon Capital.

"Corporates remained under pressure," she said. "The likely reason is that the sovereign has remained liquid on the down days, absorbing the selling pressure, while sellers in corporates are yet to find willing bids."

Ping An oversubscribed

Ping An Insurance Group Co. of China's recent RMB 1.5 billion 4% notes due 2016 that priced at par to yield 4% drew an order book of RMB 4.6 billion from 90 accounts, a market source said.

Asset and fund managers picked up 46%, private banks 33%, banks 16% and others 5%.

The deal also included an RMB 300 million tap of the company's 4¾% notes due 2018 that priced at 101 to yield 4.522%.

Dalian Wanda draws orders

China-based Dalian Wanda Commercial Properties Ltd. saw its new $600 million issue of 4 7/8% notes due 2018 draw $2.75 billion in orders from 220 accounts, a market source said.

The notes, previously postponed, priced at 98.936 to yield 5.119%, or Treasuries plus 375 bps, via Barclays, BofA Merrill Lynch, Goldman Sachs, HSBC and UBS in a Regulation S transaction.

About 80% of the orders came from Asia and 20% from Europe, with 69% from fund managers, 12% from the public sector, 7% from insurers, 5% from banks, 5% from private banks and 2% from corporates.

Paul A. Harris contributed to this report.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.