Emerging markets active; Emirates NBD prices RMB 750 million notes; Doha Bank improves

By Aleesia Forni

Columbus, Ohio, March 8 - Emerging markets saw a good snap back on Thursday from Wednesday's wobbly market, according to a market source.

In the primary market, Emirates NBD PJSC priced a RMB 750 million issue of 4 7/8% fixed-rate notes (A3/A+) due 2015 at par on Thursday, according to a syndicate source.

The yield printed at the tight end of the 4 7/8% to 5% final guidance. Initial guidance called for a yield in the 5% area.

Accounts reacted positively to the final guidance, with a final order book of RMB 4.3 billion across 98 orders.

The bank announced investor meetings on Feb. 22 with a two-day roadshow in the first ever renminbi issuance by a Middle Eastern issuer.

Following the completion of the roadshows, the bank monitored the market for a suitable execution window and announced the transaction on March 5.

Emirates NBD Capital, HSBC Bank plc and Standard Chartered Bank were joint lead managers and bookrunners.

Qatar-based lender Doha Bank priced a $500 million issue of 3½% bonds at a 262.5 basis points spread to mid-swaps, according to market sources.

The deal was "very active" on Thursday after its pricing Wednesday at 98.964.

Pricing hit a high point of 99.60 around London's mid-day before closing at 99.45 bid, 99.55 offered.

A London-based trader marked the bond's impressive performance considering initial guidance was set at 287.5 bps.

Final talk was brought into the 275 bps to 262.5 bps area.

The bond settled between 30 bps to 35 bps north of the recently priced Qatar National Bank SAQ, which came at a 235 bps spread. The Qatar National Bank $1 billion issue of 3 3/8% five-year notes priced in mid-February.

At mid-day London time on Wednesday, the order book for the Doha Bank deal stood at $1 billion, a source said.

The gray market for the Doha Bank paper was slightly positive at plus 30-cents bid, plus-35-cents offered, the source added.

Primary market stirs

Czech Export Bank (A1/AA-) also headed to the market Thursday, pricing a €250 million seven-year issue of 3.625% notes at 180 bps over mid-swaps, according to a syndicate source.

The issue priced at 99.502 to yield 3.707% and was issued under the bank's €3 billion euro medium-term note program.

Barclays and Goldman Sachs International were the bookrunners.

LS Finance (2017) Ltd., a subsidiary of Hong Kong-based retail company Lifestyle International Holdings Ltd., priced a $150 million add-on to its existing 5¼% senior unsecured notes due 2017 (Baa3/BBB-) at Treasuries plus 370 bps, according to a fund manager.

The notes priced at 102.978 to yield 4.559%.

The original $350 million deal priced on Jan. 26.

Bank of America Merrill Lynch and JPMorgan were the joint bookrunners.

Proceeds will be used to fund capital expenditures related to new department store projects in China.

Week ahead

In the week ahead, Transportadora de Gas Internacional SA ESP (Baa3/BB/BB+) will host investor meetings in London on Friday, New York on Tuesday and Boston on Wednesday for a possible Regulation S deal, according to a market source.

Proceeds will be used to fund current tender offers on the company's 2017s.

Citigroup and Credit Suisse will manage the Bucaramanga, Colombia, natural gas company's deal.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.