Turkey, TAQA, FirstRand price; Mannai talks deal; China property names eye dollar deals

By Rebecca Melvin

New York, April 16 – The Republic of Turkey and Abu Dhabi National Energy Co. PJSC (TAQA) announced and priced new notes on Monday, and a couple of issuers already on the calendar completed transactions as geopolitical risk fears gave way to improved market tone.

Military air strikes against Syria carried out early Saturday local time by the United States, France and Britain appeared to have met the allies’ objective of hurting Syria’s chemical weapons capability without dragging the countries further into war. But Russia’s President Vladimir Putin said that any further strikes against Syria would lead to “chaos” in the international order.

In the window of relative calm, Turkey priced $2 billion of 6 1/8% 10-year notes. Pricing came at 99.427 for a yield of 6.2%, or a spread to 336.8 basis points over U.S. Treasuries.

The Securities and Exchange Commission-registered deal priced below initial talk in the area of 6½%.

TAQA priced a $1.75 billion dual tranche of notes due 2025 and 2030, both well below initial talk.

The $750 million of 4 3/8% notes due 2025 priced at 99.946 to yield 4.384%, or a spread of U.S. Treasuries plus 160 bps, compared to initial price talk of Treasuries plus 185 bps.

The $1 billion of 4 7/8% notes due 2030 priced at 99.955 to yield 4.88%, or a spread of Treasuries plus 205 bps. That was below initial talk of Treasuries plus 240 bps.

Among TAQA’s existing bonds, its near dated 7¼% notes due 2018 were seen 101.12 bid, 101.37 offered in the secondary market, and wider by more than 45 bps. The rest of TAQA’s existing notes were wider by anywhere from 12 to 22 bps, according to a London-based pricing source.

Also pricing on Monday was South Africa’s FirstRand Bank Ltd., which brought $500 million of 6 3/8% 10-year tier 2 subordinated notes. Pricing was tightened from earlier guidance of 6½% to 6¾% and initial talk in the 6¾% area.

The order book stood at about $1.5 billion at the time final guidance was released.

And Qatar’s Mannai Corp. QPSC started price talk for its $300 million of perpetual notes to yield in the low- to mid-9% range. Mannai shareholders had approved a deal of r up to $600 million.

Doha, Qatar-based Mannai is a conglomerate involved in information-technology services, retail and the automotive industry.

In Asia, a trio of property-linked companies announced plans to price U.S.-dollar denominated debt. Sunac China Holdings Ltd. plans to a Regulation S fixed-rate deal via bookrunners HSBC, Morgan Stanley, China Citic Bank International, China Industrial Securities International, CMB International, Guotai Junan International, ICBC International and Nomura. Sunac is a Tianjin, China-based residential and commercial property developer.

Jingrui Holdings Ltd. announced a $350 million offering of dollar notes via BOSC International, CICC Hong Kong Securities, Guotai Junan International, Haitong International, CMB International, China Industrial Securities International and Deutsche Bank. Jingrui is a Shanghai-based property developer.

And Central China Real Estate Ltd. is proposing an international offering of dollar-denominated senior notes via Credit Suisse, Haitong International and Guotai Junan International as joint bookrunners for the Regulation S deal. The investment holding company is based in Zhengzhou City, China, and primarily engages in property development in China’s Henan Province.

Latin America was relatively quiet, but Banco de la Cuidad de Buenos Aires was heard to have begun a roadshow on Monday for a peso-denominated international deal of floating-rate notes via bookrunners HSBC and Nomura.

A benchmark-sized Rule 144A and Regulation S deal expected to follow for Cuidad after meetings wrap up on Tuesday.

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