KEB Hana Bank prints bonds; Saudi Arabia preps megadeal; South Africa widens; roadshows ahead

By Christine Van Dusen

Atlanta, Oct. 11 – South Korea’s KEB Hana Bank printed new notes on Tuesday as Saudi Arabia advanced its long-awaited, three-tranche megadeal and crude oil prices received support from comments on the sidelines of the World Energy Congress in Istanbul.

“Remarks from Saudi Arabia’s Energy Minister Al-Falih and Russian President Putin suggested that both nations were ready to cooperate and implement an oil production freeze or cut,” a London-based analyst said.

With this as the backdrop, the timing for Saudi Arabia’s deal is “certainly interesting, as oil prices have edged up further amid expectations of a production cut, although details will only be finalized in late November,” he said.

South Africa also received attention on Tuesday after Finance Minister Pravin Gordhan received a formal summons on charges of fraud, the analyst said.

In response to this news, the sovereign’s five-year credit default swaps spreads widened by about 15 basis points to 265 bps.

In trading on Tuesday, the new notes from Pakistan – $1 billion of 5½% Islamic bonds due 2021 that priced at par – retraced some gains amid profit-taking, a trader said.

In deal-related news, China’s Jiangsu Zhongguancun Science Park Holding Group Co. Ltd. will depart on Thursday for a roadshow to market a dollar-denominated issue of notes, a market source said.

Qatar’s Ahli Bank QSC will set out on Wednesday for a roadshow to market a dollar-denominated issue of perpetual notes, a market source said.

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