Axis Bank, Banco do Brasil price; Doha Bank prepares to hold investor meetings next week

By Aleesia Forni and Paul A. Harris

Columbus, Ohio, Feb. 27 - The Markit iTraxx SovX CEEMEA Index, which is used by investors to measure sovereign default risk in Central and Eastern Europe, the Middle East and Africa, last traded at 283 basis points bid late in the London session, 7 bps wider from the same point on Friday, according to a London-based trader.

Stocks started off slightly heavy in the morning but subsequently came back on a "very lackluster" day, the trader remarked.

Among recently priced issues, Czech Republic's 3 7/8% global bonds were 99.30 bid, 99.50 offered late in the London session.

"While it's still above issue price, it's still struggling on a spread basis versus Germany," the trader said.

The €2 billion issue priced at 99.169 on Feb. 21.

In Monday's primary market, Axis Bank Ltd. and Banco do Brasil SA priced $500 million and $750 million deals, respectively.

Banco do Brasil taps market

A syndicate source noted that Brazil's Banco do Brasil priced a $750 million add-on to its perpetual 11-year non-callable tier 1 junior subordinated notes at 108.5 to yield 8.488%.

The deal priced rich to the 107.25 price talk.

The original $1 billion perpetual notes priced at par in January.

BB Securities, Bradesco BBI, BNP Paribas, Citigroup, HSBC and Standard Chartered Bank were the bookrunners.

Axis Bank sells $500 million

Axis Bank priced a $500 million issue of 5 1/8% 5.5-year bonds at a 440 bps spread to Treasuries.

The deal was talked earlier in the day at Treasuries plus 450 bps.

The bonds priced at 99.442, resulting in a yield of 5.243%.

Barclays Capital, Citigroup, HSBC, JPMorgan and Standard Chartered Bank were the bookrunners.

Doha Bank on the way

For the week of March 5, Qatar's Doha Bank is expected to bring bonds following investor meetings, according to a trader.

The trader expects the deal to yield higher than Qatar National Bank SAQ's $1 billion 3 3/8% five-year notes, which came at an issue price of 99.631 to yield 3.456% on Feb. 14.

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