Bohai Steel prices notes; Turkey, Russia tighten slightly; Lat-Am suffers; roadshows ahead

By Christine Van Dusen

Atlanta, Oct. 9 – China’s Bohai Steel Group Co. Ltd. launched an issue of notes on Thursday as risk sentiment improved following dovish comments from the Federal Reserve.

“In Turkey and Russia, we have seen bonds keep up with U.S. Treasuries, with spreads a little tighter,” a London-based analyst said. “Generally we have seen better buyers of longer-dated sovereign paper, while corporates and banks have seen limited flow this morning, particularly in Russia.”

This came as Russia’s parliament approved a law allowing those affected by property seizures outside of Russia to receive compensation from the state’s budget.

“That is likely to dampen Western investor sentiment towards the country,” he said. “But on the other hand, it could apply pressure to the European Union, in particular, to drop sanctions in the future.”

Also from Russia, AFK Sistema remained under pressure as prosecutors considered widening their claims against the company.

The company’s 2019s rallied to 73 from 70 on reports that this idea was rejected by a Moscow court.

Taking a closer look at Turkey, the fighting on the border with Syria continued, and protests erupted in several Turkish cities.

Still, credit default swaps spreads moved 8 basis points tighter, “helped by the better global risk tone,” the analyst said.

From Latin America, spreads widened into the afternoon, with bids hit for investment-grade and high-yield names, a New York-based trader said.

Brazil-based Petroleo Brasileiro (Petrobras) gave up almost all of its previous tightening while Vale SA stuck near Wednesday’s spreads.

Cemex weakens again

Mexico-based Cemex SAB de CV, which seemed to stabilize early Wednesday, weakened again on Thursday, the New York trader said.

Many names from Colombia moved down during the session, he said, and corporate bonds from Peru were lifeless.

Bohai Steel launches issue

China’s Bohai Steel Group launched a RMB 1 billion issue of three-year notes at 6.4%, a market source said.

DBS is the sole global coordinator. Haitong International is a joint bookrunner for the Regulation S deal.

The steel company is based in Tianjin, China.

Turkey’s TKSB sets roadshow

Turkey’s Turkiye Sinai Kalkinma Bankasi AS (TKSB) will set out on Oct. 13 for a roadshow to market a debut issue of dollar-denominated notes, a market source said.

Citigroup, Commerzbank, ING and Standard Chartered Bank are the bookrunners for the Regulation S deal.

The lender is based in Istanbul.

Marketing trip for E-CL

Chile’s E-CL SA will set out on Friday for a roadshow to market an issue of notes, a market source said.

BofA Merrill Lynch, Citigroup and HSBC are the bookrunners for the Rule 144A and Regulation S transaction.

The roadshow will begin in Santiago and travel to London, Los Angeles and Boston before concluding on Oct. 15 in New York.

E-CL is a Santiago, Chile, holding company with assets in electricity and natural gas.

UK to issue renminbi notes

The United Kingdom is planning to issue benchmark-sized and renminbi-denominated notes in the world’s first non-Chinese sovereign bond in Chinese currency, according to an announcement from Her Majesty’s Treasury.

Bank of China, HSBC and Standard Chartered are the bookrunners for the deal.

The proceeds will be used to finance the nation’s reserves.

“Currently, Britain only holds reserves in U.S. dollars, euros, yen and Canadian dollars,” the announcement said.

An investor presentation will take place on Oct. 13 in London.

Singapore likes United Energy

About 95% of the orders for China-based United Energy Group Ltd.’s new S$100 million 6.85% notes due Oct. 17, 2016 came from Singapore, a market source said.

The notes priced on Wednesday at par to yield 6.85% via CIMB in a Regulation S deal.

The proceeds will be used for general corporate purposes.

Private banks and retail picked up 97% of the orders.

United Energy is an oil and gas company based in Hong Kong.

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