DBS Bank, Swire Pacific price; Afren, Emirates NBD set roadshows; African Bank launches

By Paul A. Harris

Portland, Ore., Feb. 21 - The Markit iTraxx SovX CEEMA index, which investors use to measure sovereign default risk in Central and Eastern Europe, the Middle East and Africa, tightened during the Tuesday European session, according to a trader who marked it 281 bps bid, 283 bps offered.

The index traded at 290 bps bid on Monday.

The recently priced Qatar National Bank 3 3/8% notes due 2017 traded at Treasuries plus 248 bps bid on Tuesday. The $1 billion deal came last week at Treasuries plus 263 bps.

On the sovereign side, the new Czech Republic 3 7/8% global bonds due 2022 (A1/AA-/A+), which priced in a €2 billion issue on Monday at mid-swaps plus 160 bps, were 5 bps wider on Tuesday, with a trader chalking up the sluggishness to the massive deal size.

In the primary market Asian issuers took center stage on Tuesday, as DBS Bank Ltd. and Swire Pacific Ltd. priced deals.

Meanwhile Afren plc and Emirates NBD PJSC set plans to meet with investors ahead of pending bond offers.

DBS Bank at the tight end

Singapore's DBS Bank priced a $1 billion issue of 2.35% five-year senior bank notes (Aa1/AA-/AA-) at a 145 bps spread to Treasuries.

The spread came at the tight end of the Treasuries plus 145 bps to 150 bps guidance.

Bank of America Merrill Lynch, DBS Bank and Goldman Sachs were the joint bookrunners.

The Singapore-based financial services group plans to use the proceeds for general corporate purposes.

Swire inside of guidance

Hong Kong-based conglomerate Swire Pacific priced a $500 million issue of 4½% 10-year fixed-rate notes (A3/A-/A) at a 260 bps spread to Treasuries.

Guidance on the notes was 275 bps.

HSBC and JPMorgan were the bookrunners.

African Bank launches

African Bank Ltd. (Baa2) launched a $350 million offering of five-year fixed-rate notes with an 8 1/8% yield.

Credit Suisse, Goldman Sachs, Standard Chartered Bank and Rand Merchant Bank are the leads for the Regulation S only deal, which comes formatted according to the issuer's euro medium-term notes program.

Afren brings secured deal

Pan African energy producer Afren plc (/B/B) mandated BNP Paribas, Deutsche Bank AG and Goldman Sachs International to lead an international roadshow ahead of a possible offering of seven-year senior secured notes (/B/), according to market sources.

Initial meetings will take place on Thursday and Friday in London.

The company and its investment bankers plan to subsequently meet with investors on the West Coast of the United States on Feb. 27, in Boston on Feb. 28 and in New York on Feb. 29.

Proceeds will be used to pay bank debt and for general corporate purposes.

Based in London, Afren conducts its oil and gas exploration, development and production operations in African countries including Nigeria, Gabon, Republic of the Congo, Ivory Coast and Ghana.

Emirates NBD sets mandate

Emirates NBD PJSC (A3/A+) mandated Emirates NBD Capital Ltd., HSBC and Standard Chartered Bank to set up investor meetings ahead of an anticipated renminbi-denominated Regulation S bond offering.

The meetings will begin on Wednesday in Hong Kong and Singapore.

The notes will be issued under the bank's $7.5 billion euro medium-term note program.

Dubai's Emirates NBD is the United Arab Emirates' largest bank by assets.

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