Bonds from China Orient, Wharf, Lithuania, KNOC, Baroda, BCP; Turkey recovers

By Christine Van Dusen

Atlanta, Jan. 15 - The pace of issuance picked up on Wednesday, with new deals from China Orient Asset Management Corp., China's Wharf (Holdings) Ltd., Lithuania, Korea National Oil Corp. (KNOC), India's Bank of Baroda and Banco de Credito del Peru.

"The primary market is becoming increasingly active as the week progresses," a London-based analyst said.

In trading, Turkey bonds recovered after the previous day's widening, she said.

"Russia is enjoying support with activity in Evraz Group and Lukoil in particular," she said. "We are also seeing buyers of Gazprombank."

This came as the Moscow-based lender set talk at 5¼% to 5½% for its upcoming CHF 10 million-minimum issue of notes due 2024 (Baa3/BBB-/BBB-) via Credit Suisse, Gazprombank and UBS.

Meanwhile, corporate credits from Latin America put in a "fairly strong day, overall" as U.S. Treasuries dropped, a New York-based trader said.

"We opened strong right off the bat with some of the spread credits bid 5 basis points tighter as we sat down," he said. "Petrobras spreads tightened about 5 bps as well."

Most corporates from Peru tightened, though banks were mostly unchanged.

"Some of the lesser-traded Chile credits continue to grind higher."

Issuers from the Middle East on Wednesday remained absent from the primary market, a trader said.

"Perhaps next week will see some supply announced," he said. "The market is behaving itself, though."

Bonds from Bahrain and Kuwait saw demand, he said.

"The Middle East and North Africa continue to feel supported on the lack of supply," the analyst said.

Aldar, Qtel in favor

Also from the Middle East, Aldar Properties PJSC remained in favor, as did Qtel International.

"Saudi Electricity Co. has lagged its peers, as has Dar al-Arkan on the high-yield front, but we did see some nibbling on the latter during the past 48 hours," the trader said.

Perpetual bonds from the Gulf region were stable, with Emirates Islamic Bank's issue trading at 92 bid, 92½ offered.

"Really some impressive spread moves over the month," he said. "Relatively active and balanced flow."

Romania notes perform

The recent two-tranche issue of $2 billion notes due 2024 and 2044 that Romania priced on Tuesday traded well on Wednesday, a trader said.

The 4 7/8% notes due 2024 that priced at 98.863 to yield 5.021% were up about 2 points on Wednesday, as were the 6 1/8% notes due 2044 that priced at 98.209 to yield 6.258%.

BNP Paribas, Citigroup and JPMorgan were the bookrunners for the Rule 144A and Regulation S deal.

Lithuania does deal

In its new deal, Lithuania sold €500 million 3 3/8% notes due 2024 at 99.292 to yield mid-swaps plus 135 bps, a market source said.

The notes were talked at a spread in the 145 bps area.

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

China Orient sells notes

China Orient Asset Management priced RMB 2.5 billion 4.1% notes due 2017 at par to yield 4.1%, a market source said.

Bank of China International, Agricultural Bank of China, Standard Chartered Bank and UBS were the bookrunners for the Regulation S deal.

Wharf prices bonds

China's Wharf priced $400 million 3½% notes due 2019 at 99.419 to yield 3.628%, or Treasuries plus 195 bps, a market source said.

BNP Paribas, DBS Bank, HSBC and Standard Chartered Bank were the bookrunners for the Regulation S deal.

Wharf is a Hong Kong-based conglomerate with businesses in property investment and development, communications, media and entertainment.

Issue from KNOC

Korea's KNOC priced a two-tranche issue of $1 billion notes due 2019 and 2024, a market source said.

The deal included $500 million 2¾% notes due 2019 that priced at 99.532 to yield Treasuries plus 117.5 bps.

The second tranche of $500 million 4% notes due 2024 priced at 99.446 to yield Treasuries plus 117.5 bps.

Both tranches were talked at a spread in the 120 bps area.

Barclays, Citigroup, Deutsche Bank, HSBC, Korea Development Bank and UBS were the bookrunners for the Rule 144A and Regulation S deal.

Baroda prints notes

India's Bank of Baroda sold $750 million 4 7/8% notes due 2019 (Baa3//BBB-) at 99.757 to yield 4.926%, or Treasuries plus 325 bps, a market source said.

The notes were talked at a spread in the 330 bps area.

BofA Merrill Lynch, Barclays, Citigroup, JPMorgan and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.

Add-on for Peruvian bank

Banco de Credito del Peru priced a $200 million increase of its 6 1/8% notes due 2026 at 99.828 to yield 6.15%, a market source said.

Citigroup, Credicorp and JPMorgan were the bookrunners for the Rule 144A and Regulation S deal.

The deal's size now totals $720 million.

The lender is based in Lima.

Pemex launches deal

Also on Wednesday, Mexico's Petroleos Mexicanos SAB de CV (Pemex) launched a three-part issue of $4 billion notes due in 2019, 2024 and 2045 (Baa1/BBB+/BBB+), a market source said.

The $500 million notes due January 2019 launched at Treasuries plus 145 bps.

The $500 million tap of the company's 2024 notes launched at 205 bps over Treasuries.

And the $3 billion notes due January 2045 launched at Treasuries plus 260 bps.

BofA Merrill Lynch, Deutsche Bank and Goldman Sachs are the bookrunners for the Rule 144A and Regulation S deal.

Pemex is a Mexico City-based petrochemical company.

Peru miner gives guidance

Peru's Compania Minera Ares SAC set talk in the 8½% area for its upcoming $350 million issue of seven-year notes (expected ratings: Ba1//BB+), a market source said.

BofA Merrill Lynch, Goldman Sachs and BBVA are the bookrunners for the Rule 144A and Regulation S deal. Corpbanca and Scotiabank are the co-managers.

The notes are non-callable and include a change-of-control put at 101 and an equity clawback of 35%.

The proceeds will be used to refinance debt and for general corporate purposes.

The issuer is a Peruvian mining company.

Modern Land sets talk

Modern Land set talk at 11% for its upcoming benchmark-sized issue of renminbi-denominated notes due in three years via Morgan Stanley, JPMorgan, Credit Suisse Guotai Junan and CLSA in a Regulation S deal.

The proceeds will be used to fund existing and new property projects and for general corporate purposes.

Unicomer seeks issuance

El Salvador's Grupo Unicomer - through Regal Forest Holding Co. Ltd. - is looking to issue up to $300 million of notes due up to 2024 (expected rating: //BB-), according to a report from Fitch Ratings.

No other details were immediately available on Wednesday.

The issuer is an international retailing group.

Santander Brazil deal ahead

Banco Santander Brazil SA is looking to print a two-tranche issue of dollar-denominated notes, according to a company filing.

The deal would include 7 3/8% perpetual notes and 6% notes due 2024.

Santander is the bookrunner for the Securities and Exchange Commission-registered deal.

The proceeds will be used for general corporate purposes.

The bank is based in Brazil.

Poland to issue dollar notes

Poland is looking to issue dollar-denominated notes, according to a filing from the sovereign.

Barclays, Citigroup and Goldman Sachs are the bookrunners for the Securities and Exchange Commission-registered deal.

The proceeds will be used for general financing purposes.

Latvia bonds oversubscribed

The final book for Latvia's new €1 billion issue of 2 5/8% notes due 2021 was €4.5 billion, a market source said.

The notes priced Tuesday at 98.808 to yield 2.815%, or mid-swaps plus 120 bps, tighter than talk.

Citigroup, JPMorgan and Societe Generale were the bookrunners for the Rule 144A and Regulation S deal.

About 28% of the orders went to the United Kingdom and Ireland, 18% to Germany and Austria, 15% to the United States, 7% to Benelux nations, 7% to France, 7% to Nordics, 7% to Switzerland, 5% to other Europe, 4% to Latvia and 2% to others.

Asset managers picked up 60%, pension funds and insurers 15%, banks and private banks 13%, hedge funds 6% and others 6%.

The notes were up 1.3 bps in trading on Wednesday.

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