Primary hosts Etihad, Gazprom, 4finance; Suzano bonds ‘interesting’; Turkish paper widens

By Christine Van Dusen

Atlanta, Nov. 23 – Abu Dhabi’s Etihad Airways, Russia’s PJSC Gazprom and Latvia’s 4finance Holding SA were among the issuers to bring new notes ahead of the Thanksgiving holiday on a wider Wednesday for Turkey’s bonds.

“Closing 8 basis points to 12 bps wider, underperforming all peers once again,” a London-based trader said. “Very weak close, as most expect no small move higher by Central Bank of Turkey.”

Investors in Turkey’s bonds remain “quite cautious despite the recent yield growth,” according to a report from Schildershoven Finance BV. “The central bank’s meeting, to be held on Wednesday, will hardly change the situation.”

From Latin America, Brazil-based paper and pulp company Suzano Papel e Celulose SA was eyed after saying it would continue to invest $500 million a year despite the downturn in the pulp industry, the report said.

“The company expects stable sales in China’s market, while some rebound may occur in Argentina, Colombia and Peru,” the report said. “The company’s bonds may be interesting for investors with a low risk appetite.”

Overall trading activity was muted, though, given that investors from the United States were looking ahead to the Thanksgiving holiday and continued to digest the news of Donald Trump’s presidential win.

Against this backdrop, primary market activity warmed up slightly for emerging markets issuers, with Abu Dhabi’s Etihad Airways – via Unity 1 Sukuk Ltd. – pricing $1.5 billion notes due November 2021 at mid-swaps plus 210 bps, a market source said.

HSBC, JPMorgan, National Bank of Abu Dhabi, Abu Dhabi Islamic Bank, Dubai Islamic Bank and First Gulf Bank were the bookrunners for the Islamic bonds.

Gazprom prints notes

In its new deal, Russian natural gas producer Gazprom – via Gaz Capital SA – priced CHF 500 million 2¾% notes due Nov. 30, 2021 at par to yield 2¾%, according to a company filing.

Deutsche Bank, Gazprombank, UBS and VTB Capital were the bookrunners.

The proceeds of the offering will be used to finance a euro loan to PJSC Gazprom. The proceeds of the loan to PJSC Gazprom will be used for general corporate purposes.

Latvian issuer prices tap

Also on Wednesday, Latvia’s 4finance priced a €50 million tap of its 11¼% notes due May 23, 2021 at par to yield 11¼%, according to a company announcement.

Wallich & Matthes and ABG Sundal Collier were the joint lead managers. Dero Bank was the co-lead manager. Renaissance Capital was the co-manager.

The original €100 million issue priced in May at par.

The provider of short-term loans is based in Riga, Latvia.

Exim China brings two tranches

Export-Import Bank of China launched a two-tranche issue of €2 billion notes due 2019 and 2021, a market source said.

The €1.15 billion three-year notes launched at mid-swaps plus 35 bps. The €850 million five-year notes launched at mid-swaps plus 60 bps.

Bank of China, Barclays, BOCOM HK branch, Credit Agricole CIB, ING and MUFG Securities are the bookrunners for the Regulation S deal.

The proceeds will be used for general corporate purposes.

The issuer is based in Beijing.

Dah Sing seeks issuance

China’s Dah Sing Bank Ltd. is looking to issue up to $250 million of 10-year notes, a market source said.

The notes will be callable after five years, according to a report from Fitch Ratings.

The proceeds will be used to support business expansion and replace legacy obligations that will become callable in 2017.

The lender is based in Hong Kong.

Tecnoglass cancels deal

Colombia’s Tecnoglass Inc. has canceled plans for up to $225 million bonds due in five, six or seven years, a market source said.

BofA Merrill Lynch and Morgan Stanley were the bookrunners for the deal.

Tecnoglass is a Barranquilla, Colombia-based architectural glass transformation company that provides glass, windows and aluminum products for the global residential and commercial construction industries.

© 2015 Prospect News.
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