Russia's Tinkoff prices notes, Turkey's Albaraka on deck; secondary seen 'less active'

By Christine Van Dusen

Atlanta, Nov. 29 - Thursday's primary saw Tinkoff Credit Systems price a $125 million issue of notes at par, as emerging market paper was seen "less active" during the session compared to earlier in the week.

However, one London-based trader added that there was "still plenty of prices and liquidity around."

Other names are lining up to sell dollar-denominated bonds in the weeks ahead, including Abu Dhabi National Energy Co. (TAQA) and Turkey's Albaraka Turk Katilim Bankasi AS.

The secondary market saw Russian corporate bonds open Thursday's session about 3 basis points to 5 bps better, with most activity focused on Sberbank's 10-year notes and Gazprombank's perpetuals, an analyst said.

"Turkey is also opening slightly tighter with balanced flows," she said. "The Middle East and North Africa opens up a couple of basis points better."

U.S. 'fiscal cliff' looms

A report from Barclays stated that the market continues to be "firmly focused on the U.S. fiscal cliff discussions."

"Recent pessimism regarding progress gave way to hopeful optimism following President Obama's and House Speaker Boehner's comments on finding a solution."

Risk assets, which rallied late Wednesday in response, remained in a good position on Thursday morning, with the Markit iTraxx SovX index spread starting the session about 3 bps tighter.

"However, with substantive discussions between Congressional leaders and the President not expected to kick off until next week, we would not read much into the volatile headlines," Barclays said. "A quick solution appears unlikely."

Tinkoff prices

Tinkoff Credit Systems sold a $125 million issue of 14% notes due 2018 at par, a market source said.

Goldman Sachs and JPMorgan were the bookrunners for the Regulation S-only deal.

Tinkoff is a Moscow-based credit card lending institution.

IPIC bonds active

The recent $2.9 billion three-tranche issue of notes due in 2015, 2018 and 2023 from Abu Dhabi's International Petroleum Investment Co. remained active in trading on Thursday.

The deal included $750 million 1¾% notes due Nov. 30, 2015 that priced at 99.762 to yield 1.832%, or mid-swaps plus 135 bps. The notes, which traded Wednesday at 100¼ bid, 100.35 offered, were seen Thursday at 100.12 bid, 100.37 offered.

BNP Paribas, JPMorgan, National Bank of Abu Dhabi, Natixis, RBS and Unicredit were the bookrunners for the Regulation S-only deal.

IPIC curve 'steady'

The second tranche of new bonds from IPIC, €800 million of 2 3/8% notes due May 30, 2018 that priced at 99.583 to yield 2.459%, or mid-swaps plus 145 bps, were seen Wednesday at 101¼ bid, 101.45 offered.

On Thursday, they were quoted at 101.28 bid, 101.58 offered.

IPIC's third tranche of new bonds, €850 million 3 5/8% notes due May 30, 2023, priced at 99.021 to yield 3.742%, or mid-swaps plus 195 bps. The notes traded Wednesday at 101.40 bid, 101.65 offered. On Thursday they were seen at 101¼ bid, 101½ offered.

"The IPIC curve was steady today, although we felt a little paper came out on the new bonds," the London trader said.

Dubia 'trading well'

"Some bonds are getting nicely squeezed," a trader said. "Jafza is up at 114 last, and it feels like there's very little paper about."

Bonds from Dubai and Dubai Electricity and Water Authority were trading well, anywhere from 15 bps to 30 bps tighter on the month.

"Little breather here for the Abu Dhabi Islamic Bank perpetuals, closing at 105 3/8 bid, 105 5/8 offered, off about 15 cents to 25 cents from yesterday's prints," he said.

Bahrain was well bid during the afternoon, and Qatar's curve flattened, with its 2014s, 2015s and 2017s well offered.

Ukraine bonds better

Bonds from Ukraine continued to recover this week on cautious optimism about the fiscal cliff talks.

"Traders' focus remained on Ukraine 9¼% '17s, which were quoted at 108½ bid, 109½ offered," said Svitlana Rusakova of Dragon Capital.

The sovereign's 2020s were seen at 104¼ bid, 105¼ offered while the 2021s traded at 104¼ bid, 105¼ offered.

"Corporates held up well," she said, pointing to Metinvest's 2018s, which traded at 95 bid, 96 offered.

The City of Kiev's bonds remained in demand, with its 2015s trading at 92½ bid, 94½ offered and its 2016s at 93 bid, 95 offered.

TAQA sets roadshow

TAQA will hold a roadshow from Dec. 3 to Dec. 4 for a dollar-denominated issue of notes, a market source said.

BNP Paribas, Citigroup, HSBC, National Bank of Abu Dhabi and Standard Chartered are the bookrunners for the deal, which is expected to price by the end of the year.

Albaraka eyes offering

Turkey's Albaraka Turk Katilim Bankasi is planning an issue of $200 million five-year notes in 2013, a market source said.

No other details were immediately available on Thursday.

Albaraka is a banking group based in Istanbul.

Samruk-Energy plans deal

Kazakhstan's JSC Samruk-Energy is planning a $680 million issue of notes (expected rating: //BBB-), a market source said.

Proceeds will be used to fund the company's capital expenditure program.

Samruk-Energy is owned by the state through utility, rail and postal conglomerate JSC Samruk-Kazyna.

"The group is viewed as a strategic asset of the state," a London-based analyst said. "However, due to the lack of 50% debt guaranteed by the government, it is rated one notch below."

Afreximbank to sell debt

Egypt's African Export-Import Bank (Afreximbank) is mulling a dollar- and euro-denominated issue of notes in 2013, a market source said.

The deal could come to the market in the second half of the year.

Afreximbank is a trade finance bank based in Cairo.

Aleesia Forni contributed to this review

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