Banco do Brasil, Sibur, Cosco, others print notes; spreads widen a bit; Qtel notes active

By Christine Van Dusen

Atlanta, Jan. 24 - Banco do Brasil SA, Russia's OAO Sibur Holdings, China's Cosco Pacific Finance (2013) Co. Ltd., China's Future Land Development Holding Ltd., OJSC Russian Agricultural Bank, Russia's Sberbank and India's Tata Communications sold notes on a busy Thursday for emerging markets assets.

The Markit iTraxx SovX index spread was wider by 1 basis point while the corporate index was wider by 2 bps.

The new notes from Qatar Telecom (Qtel) were active in trading on Thursday.

"On the back of some decent Asian interest, the 2043s flew out of the gate," a London-based trader said. "It jumped up to 101.25 by mid-morning, only to subsequently fade as the day wore on."

The notes closed at 99.62 bid, 99.87 offered.

"So still a very sound effort," he said.

The 15-year notes were a bit less volatile, with a high of about 99.875 before closing at 99.70 bid, 99.85 offered.

"Saw decent two-way on the older 2023s," he said. "They look slightly rich here, to my mind, versus some other parts of the curve."

In its new deal, lender Banco do Brasil priced a $2 billion issue of 6¼% perpetual notes at par to yield 6¼%, a market source said.

The notes were talked in the 6½% area.

Barclays, BB Securities, BNP Paribas, Bank of America Merrill Lynch, BTG Pactual, HSBC and Standard Chartered were the bookrunners for the Rule 144A and Regulation S deal.

Proceeds will be used for general corporate purposes.

Sibur, Cosco sell bonds

In another new deal, Russia's Sibur Holdings sold $1 billion 3.914% notes due Jan. 31, 2018 at par to yield 3.914%, or mid-swaps plus 300 bps, a market source said.

The notes were talked at the mid-swaps plus 310 bps area.

Credit Suisse, Gazprombank and Sberbank were the bookrunners for the Rule 144A and Regulation S deal.

And China's Cosco sold $300 million 4 3/8% notes due Jan. 31, 2023 at 99.32 to yield 4.46%, or Treasuries plus 265 bps, a market source said.

The notes priced at the tight end of talk, set Treasuries plus 265 bps to 270 bps.

UBS, Bank of China International, Deutsche Bank and JPMorgan were the bookrunners for the Regulation S deal.

Future Land prices notes

China's Future Land has sold $200 million 10¼% notes due Jan. 31, 2018 at par to yield 10¼%, a market source said.

The notes priced in line with talk, set at 10¼%.

Bank of America Merrill Lynch, Deutsche Bank, UBS and Haitong International were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used to repay loans, fund land acquisitions and for general corporate purposes.

And Russian Agricultural Bank printed an RMB 1 billion issue of 3.6% notes due Feb. 4, 2016 at par to yield 3.6%, a market source said.

The notes priced at the tight end of talk, set at 3.6% to 3.7%.

JPMorgan and RBS were the bookrunners for the Regulation S deal.

Sberbank, Tata new deals

In another deal from Russia, Sberbank priced a RUB 25 billion issue of 7% notes due Jan. 31, 2016 at par to yield 7%, a market source said.

The notes were talked at a yield in the low-7% area.

Barclays and Sberbank were the bookrunners for the Regulation S deal.

And India's Tata Communications priced a S$250 million issue of notes due in 2016 with a 4¼% coupon.

The notes were talked at 4¼% to 4 3/8%.

ANZ, DBS, RBS and Standard Chartered Bank were the bookrunners for the Regulation S deal.

No other details were immediately available on Thursday.

Tata Communications is part of Tata Group, a conglomerate based in Mumbai.

Middle East in focus

In trading from the Middle East, International Petroleum Investment Co. (IPIC) saw some paper come out, a trader said.

"They've had such a move, and such a run, that they are more exposed to interest rate moves," he said. "All IPIC euros went lower today."

Abu Dhabi National Energy Co.'s (TAQA) 2023s saw some buying at 101 while the 2021s closed about 4 bps to 5 bps wider.

"I think the TAQA 2023s are looking a little rich too," he said. "But as we've seen, lower dollar-priced and more liquid bonds can trade through higher dollar-priced, less liquid bonds on the curve."

He was also keeping an eye on Emirates Airline, which could be pondering a Rule 144A and Regulation S deal.

"The 2016s today close at z-spread plus 245 bps, bid side," he said.

Bahrain notes tighten

Bahrain's 2020s and 2022s were seen as much as 65 bps tighter on the month, a trader said.

"Very impressive," he said. "Some of the Dubai complex has been much more two-way recently, especially Emaar Properties, Jafza Holdings and Dubai Water and Electricity Authority."

"A pause was natural after the grab-attack of week one," he said. "Dubai Holdings still feels demand."

JBS plans roadshow

In deal-related news, Brazil's JBS SA will set out on a roadshow on Friday for a possible Rule 144A and Regulation S transaction, a market source said.

BB Securities, Bradesco BBI, Deutsche Bank, JPMorgan and Santander are arranging the marketing trip.

The roadshow will begin in Los Angeles and Boston and conclude on Jan. 28 in New York and London.

JBS is a meat processor based in Sao Paulo.

Gajah Tunggal gives guidance

Indonesia's PT Gajah Tunggal Tbk gave initial price talk in the mid-8% area for its planned dollar-denominated issue of benchmark-sized notes due in five years, a market source said.

Credit Suisse, Deutsche Bank and HSBC are the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used for capital expenditures and to fund a tender and call of the company's existing $412 million 2014 notes.

Gajah Tunggal is a tire manufacturer based in Jakarta, Indonesia.

Gazprom plans marketing trip

Russia's OJSC Gazprom will market a dollar-denominated issue of Rule 144A and Regulation S notes during a roadshow from Jan. 28 to 29, a market source said.

BNP Paribas, Gazprombank and JPMorgan are arranging the marketing trip.

Gazprom is a Moscow-based global energy company.

Halkbank will hit road

Turkey's Turkiye Halk Bankasi (Halkbank) has mandated Commerzbank, Goldman Sachs, JPMorgan and Standard Chartered Bank for a roadshow to market a dollar-denominated issue of notes, a market source said.

The roadshow will begin Friday in New York and conclude on Monday in London.

A Rule 144A and Regulation S transaction is expected to follow.

Halkbank is a state-owned lender based in Ankara, Turkey.

Mingfa talks bonds

China's Mingfa Group (International) Co. Ltd. set initial price talk at the 13¼% area for a dollar-denominated issue of benchmark-sized notes due in five years, a market source said.

Credit Suisse, Citigroup, ICBC International, Morgan Stanley and RBS are the bookrunners for the Regulation S deal.

Proceeds will be used for refinancing of existing indebtedness and for general corporate purposes.

Mingfa is a property developer based in Hong Kong.

Hengdeli oversubscribed

The final book for China-based watch retailer and wholesaler Hengdeli Holdings Ltd.'s $350 million issue 6¼% notes due in 2018 was about $4.4 billion from more than 250 accounts, a market source said.

The notes priced at par to yield 6¼% after being talked at a yield in the 6 3/8% area.

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

About 65% of the orders came from Asia, 31% from Europe and 4% from the offshore United States.

Fund managers picked up 53%, private banks 39% and others 8%.

Longfor attracts orders

Also oversubscribed was the $500 million issue of 6¾% notes due Jan. 29, 2023 that China's Longfor Properties Co. Ltd. printed at par to yield 6¾%, a market source said

The notes were talked at a yield in the 7% area.

The final book was $1.75 billion, with 70% of the orders from Asia, 29% from Europe and 1% from the offshore United States.

Citigroup, HSBC, Morgan Stanley and Standard Chartered Bank were the bookrunners for the Regulation S deal.

The proceeds will be used for refinancing and for general corporate purposes.

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