Deals from Aldar, Ooredoo mostly absorbed by market; Afren sells bonds; EM spreads tighten

By Christine Van Dusen

Atlanta, Nov. 26 - Afren plc, Abu Dhabi's Aldar Properties PJSC and Qatar's Ooredoo QSC sold notes on a fairly active Tuesday for emerging markets bonds, with better selling of perpetual notes from the Middle East, ahead of Thursday's Thanksgiving holiday.

"With [Ooredoo] and Aldar pricing their sukuks late on today, that's $2 billion of new five-year supply hitting the market, and I must admit she held in very well," a London-based trader said. "Taking a quick look at the calendar reveals Thanksgiving Thursday, poor liquidity Friday and then maybe nine to 10 more real trading and liquid days of the year. So any further supply in this space better get moving."

In trading on Tuesday, the 2043 bonds from Saudi Electricity Co. were active in the high-91 range, he said, while bonds from Bahrain remained well-bid.

Otherwise, in the emerging markets universe, it was a "total mixed bag," the trader said.

The Markit iTraxx SovX CEEME ex-EU index spread on Tuesday narrowed to 228 basis points over Treasuries, versus Monday's 232 bps. The corporate index, seen Monday at 250 bps, tightened 3 bps on Tuesday to 247 bps over Treasuries.

"With all focus on the primary, secondary markets are seeing limited activity this morning with spreads generally being supported," a London-based analyst said.

Looking to Africa, Ghana was seeking to issue $1 billion of eurobonds while Cairo-based African Export-Import Bank (Afreximbank) traded well, a trader said.

"The South Africa sovereign felt heavy this afternoon," he said. "Mozambique has had a good week."

And Gabon is planning to issue new notes as part of an exchange and tender offer of its $1 billion 8.2% notes due in 2017 via Citigroup, Deutsche Bank and Standard Chartered Bank in a Rule 144A and Regulation S transaction.

Yapi Kredi notes move up

In trading on Tuesday, the new issue from Turkey's Yapi ve Kredi Bankasi AS - $500 million 5¼% five-year notes - was up 50 cents from reoffer, a trader said.

The notes priced at 99.342 to yield mid-swaps plus 395 bps via BNP Paribas, Citigroup Global Markets, HSBC, BofA Merrill Lynch and UniCredit in a Rule 144A and Regulation S deal.

Lat-Am in focus

Corporate bonds from Latin America moved a bit tighter on Tuesday, even as they lagged other names in the broader fixed-income arena, a New York-based trader said.

"Once again, price action remains sloppy at best and liquidity is once again bond-specific to a large degree," he said. "Spread credits held their spreads and made gains with the Treasury move."

Ooredoo sells bonds

Qatar-based telecommunications firm Ooredoo sold $1.25 billion 3.039% notes due 2018 at par to yield 3.039%, or mid-swaps plus 160 bps, according to a market source and an announcement from the company.

Talk had been set in the mid-swaps plus 165 basis points area, which looked "appealing," a trader said.

DBS Bank, Deutsche Bank, HSBC, QInvest and QNB Capital were the bookrunners for the Regulation S deal.

"We expect this to stir investor interest, given the lack of non-bank sukuk paper," the trader said. "We feel the five-year is right at the sweet spot."

Aldar prices deal

Abu Dhabi-based real estate company Aldar Properties priced $750 million 4.348% notes due 2018 at par to yield 4.348%, or mid-swaps plus 290 bps, a market source said.

The notes were talked at a spread in the very low 300 bps area.

Standard Chartered Bank, Dubai Islamic Bank, First Gulf Bank, Goldman Sachs and National Bank of Abu Dhabi were the bookrunners for the Regulation S deal.

The notes later traded at par bid, 100¼ offered before moving to 99 7/8 bid, 100 1/8 offered.

Afren prints notes

London-based oil and gas company Afren, which has operations in Africa and the Middle East, priced a $360 million issue of seven-year senior secured notes at par to yield 6 5/8% on Tuesday, according to a market source.

The yield printed at the tight end of yield talk in the 6 ¾% area.

Global coordinator Citigroup was a joint lead manager and joint bookrunner. BofA Merrill Lynch and Credit Suisse were also joint lead managers and joint bookrunners.

The proceeds will be used to fund the tender for the company's notes maturing in 2016 and 2019; a clause in the credit agreement allows for the security on the notes to fall away upon full repayment of the 2016 and 2019 notes.

PTA Bank sets talk

Eastern and Southern African Trade and Development Bank (PTA Bank) set talk in the 6½% area for its five-year issue of dollar-denominated notes, a market source said.

BNP Paribas and Standard Chartered Bank are the bookrunners for the Regulation S deal, which is expected to price on Wednesday.

PTA Bank is a lender based in Bujumbura, Burundi.

Roadshow for Bharti Airtel

India's Bharti Airtel Ltd. has mandated six banks for a roadshow to market a euro-denominated issue of notes, a market source said.

Barclays, BNP Paribas, Deutsche Bank, JPMorgan, Standard Chartered Bank and UBS Investment Bank are arranging the marketing trip, which begins on Wednesday.

A Regulation S transaction is expected to follow.

Bharti Airtel is a mobile telecommunications company based in New Delhi.

Uranium One to issue notes

Canada-based but emerging markets-focused Uranium One Inc. is looking to issue $350 million non-convertible senior notes due in 2018, according to a company announcement.

Deutsche Bank, Sberbank and Societe Generale are the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used to repurchase existing convertible debentures and for general corporate purposes.

The issuer is a uranium mining company with operations in Kazakhstan and South Africa.

Issuance from Guocoland

On Monday, Singapore's Guocoland Ltd. priced S$125 million 3.55% notes due 2016 at par to yield 3.55%, a market source said.

Credit Suisse and HSBC were the bookrunners for the Regulation S deal.

The proceeds will be used for general working capital and corporate requirements, including the refinancing of existing borrowings.

GuocoLand is an investment holding company that focuses on real estate properties in Singapore, China, Malaysia and Vietnam.

About 90% of the orders went to Singapore, the source said.

Alfa Bank does deal

Also on Monday, Russia's OJSC Alfa Bank priced CHF 85 million 4% notes due 2018 at par to yield 4%, or mid-swaps plus 357.6 bps, a market source said.

UBS and Alfa Bank were the bookrunners for the Regulation S-registered deal.

Alfa Bank is a commercial lender based in Moscow.

Private banks picked up 60% of the orders while asset managers took 33% and others 7%.

Paul A. Harris contributed to this report.

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