Banglalink, Finansbank print bonds; Russia in focus; Tata Motors gives guidance

By Christine Van Dusen

Atlanta, April 25 - Bangladesh's Banglalink Digital Communications Ltd. and Turkey's Turkiye Finans Katilim Bankasi AS (Finansbank) sold notes on Friday as the market's attention remained trained on Russia, with news about sanctions and a downgrade from Standard & Poor's.

"Russia is opening weaker, circa 20 basis points wider this morning in credit default swaps, with Russia 2030s down 1 point," a London-based trader said. "Banks are being particularly impacted, with 10-year benchmarks being marked down 1 point."

As the United States prepared to place sanctions, pro-Russian separatists were holding mediators in Ukraine.

"Russia remains under pressure," a London-based analyst said. "The rest of [emerging markets] continues to perform well, with a slightly more active primary market this week."

In trading, Latin American bonds and notes from the Middle East managed to remain strong, a trader said.

"Abu Dhabi National Energy Co.'s curve is holding well, despite the upcoming new issue," she said.

Bonds from Dubai saw some nibbles, as did DPWorld's 2017s, Emaar Properties PJSC's 2019s, Emirates airline's 2016s and Dubai Holdings' 2017s.

"Hungary performed well, tightening 5 bps to 10 bps on average," she said. "But we see signs that confidence in Turkey is waning, with private bank sellers slowly emerging. Turkish banks were effectively flat on the week, in spread terms."

Turkey's Asya Katilim Bankasi AS (Bank Asya) had the toughest time, widening about 24 bps, after the lender's application for bond issuance was rejected by regulators.

In other news, emerging markets bond funds saw inflows of $203 million for the week ended Wednesday, the analyst said. That's down from the previous week's $686 million.

Banglalink sells notes

Bangladesh's Banglalink Digital revived its $300 million issue of 8 5/8% notes due May 6, 2019, pricing at 99.008 to yield 8 7/8%, a market source said.

The notes were talked at yield in the 9% area.

Citigroup was the sole bookrunner for the Rule 144A and Regulation S deal.

The issuer is a cellular services provider and a subsidiary of Malta's Telecom Ventures Ltd., part of Egypt's Global Telecom Holding.

Finansbank does deal

Turkey's Finansbank $500 million 6¼% notes due April 30, 2019 at 99.472 to yield 6 3/8%, or mid-swaps plus 458.3 bps, a market source said.

The notes were talked at a yield in the 6½% area.

Citigroup, HSBC, Morgan Stanley and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.

Finansbank is an Istanbul-based lender.

Tata Motors sets roadshow

India's Tata Motors Ltd. will set out on April 28 for a roadshow to market a dollar-denominated issue of notes, a market source said.

AMZ Banking Group, BofA Merrill Lynch, Citigroup and HSBC are the bookrunners for the Regulation S deal.

Tata Motors is based in Mumbai.

Dominican Republic sells bonds

On Thursday, Dominican Republic sold $1.25 billion 7.45% notes due April 30, 2044 at par to yield 7.45%, a market source said.

Goldman Sachs and JPMorgan were the bookrunners for the Rule 144A and Regulation S deal.

The sovereign had considered including a peso-denominated tranche of notes, but that plan was canceled.

The proceeds will be used to finance infrastructure projects and provide economic support to other sectors of the economy.

Times Property oversubscribed

The final book for China-based Times Property Holdings Ltd.'s new $80 million increase of its 12 5/8% notes due March 21, 2019 was more than $220 million from more than 30 accounts, a market source said.

The notes came to the market at 100.125.

About 93% of the orders came from Asia and 7% from Europe, with 78% from fund managers and 22% from private banks and others.

The company in March priced $225 million of 12 5/8% five-year notes at 99.278 to yield 12 7/8%.

BOC International, Citigroup, Haitong International, HSBC and UBS are the bookrunners for the Regulation S deal.

The proceeds will be used to refinance existing debt, to fund property development projects and for general corporate purposes.

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